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TABOR Policy Options

TABOR Policy Option #1



Do Nothing.



Pros

  • Easiest option.
  • Forces a smaller state government relative to the size of our economy.
  • Residential property taxes will most likely continue to decrease.

Cons

  • Will continue to force cuts in some state programs to support others and continue to grow state’s share of K-12 funding.
  • Will continue to erode residential property tax base which reduces funding for local services and disproportionately adversely impacts poorer communities.


TABOR Policy Option #2



De-couple TABOR from the Gallagher Amendment and allow Gallagher to work as it was intended by amending TABOR to allow taxing authorities to automatically increase/decrease their mill levies to sustain a constant revenue stream in response to decreases/increases in the Residential assessment rate.



Pros

  • Stops erosion of residential property tax base and protects funding for local services and growth of state’s share of K-12 funding.
  • Relatively smaller change to TABOR may be easier to garner voter support and, by repealing language, may only require simple-majority.

Cons

  • Continues to shrink state government relative to the size of our economy and force cuts in some state programs to support others.
  • Potentially accelerates the shift of property tax burden from Residential to Non-residential which disproportionately adversely impacts rural communities with less commercial value.


TABOR Policy Option #3



Modify the state revenue cap to correlate with growth in the ECONOMY rather than INFLATION.



Pros

  • Allows the state to retain and invest MOST funds that would otherwise have to be refunded to taxpayers, thus allowing the state budget to better keep up with growth of service demands.
  • Possibly easier to garner voter support than entirely removing revenue limit.

Cons

  • .Reduces (and potentially eliminates) TABOR rebates for the foreseeable future.
  • Change in constitution requires 55% super-majority.


TABOR Policy Option #4



Eliminate the state revenue cap as most LOCAL governments have done, and allow the state to retain revenues during times of economic growth and invest in state services.



Pros

  • Allows the state to retain and invest ALL funds that would otherwise have to be refunded to taxpayers, thus allowing the state budget to better keep up with growth of service demands.
  • Simple repeal in constitution requires only simple-majority approval of voters.

Cons

  • Eliminates TABOR rebates.
  • May be difficult to pass because it removes one of TABOR’s two primary restrictions.


TABOR Policy Option #5



Restore ability of legislature to increase taxes without voter approval under certain circumstances. (i.e. super-majority of both legislative chambers)



Pros

  • Restores to some degree the original authority of legislature to raise revenues to meet the state’s public service demands.
  • May be easier to get voter support than entirely restoring legislature’s original taxing authority.

Cons

  • Eliminates current authority of taxpayers to approve all state tax increases.
  • May be difficult to pass because it removes one of TABOR’s two primary restrictions and requires 55% vote. (Would have to ENTIRELY restore legislature’s taxing authority to only require simple-majority vote.)
Restore ability of legislature to increase taxes without voter approval under certain circumstances. (i.e. super-majority of both legislative chambers)


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