Colorado Taxpayer's Bill of Rights (TABOR)

The Colorado Taxpayer's Bill of Rights (TABOR) requires voter approval for all new taxes, tax rate increases, extensions of expiring taxes, mill levy increases, valuation for property assessment increases, or tax policy changes resulting in increased tax revenue.

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase in state revenue to the prior year's inflation measured by the Denver-Aurora-Lakewood consumer price index plus the estimated previous year's change in the state’s population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

The following sources of revenue are not subject to the TABOR state revenue limit:

• revenue used for refunds to taxpayers;
• gifts;
• federal funds;
• collections for another government;
• pension contributions by employees;
• pension fund earnings;
• transfers or expenditures from reserves;
• damage awards;
• property sales;
• enterprise revenue; and
• voter-approved revenue changes.

Creation of the Taxpayer's Bill of Rights

The Colorado Taxpayer's Bill of Rights was passed by voters in 1992 as Initiative 1. The measure was approved by a vote of 53.68% to 46.32%. The measure was sponsored by Colorado activist Douglas Bruce (R).

Constitutional provision

The Taxpayer's Bill of Rights is located in Section 20 of Article X of the Colorado Constitution. The text of the section is as follows:

Note: Hover over the text and scroll to see the full text.

The Taxpayer's Bill of Rights

(1) General provisions. This section takes effect December 31, 1992 or as stated. Its preferred interpretation shall reasonably restrain most the growth of government. All provisions are self-executing and severable and supersede conflicting state constitutional, state statutory, charter, or other state or local provisions. Other limits on district revenue, spending, and debt may be weakened only by future voter approval. Individual or class action enforcement suits may be filed and shall have the highest civil priority of resolution. Successful plaintiffs are allowed costs and reasonable attorney fees, but a district is not unless a suit against it be ruled frivolous. Revenue collected, kept, or spent illegally since four full fiscal years before a suit is filed shall be refunded with 10% annual simple interest from the initial conduct. Subject to judicial review, districts may use any reasonable method for refunds under this section, including temporary tax credits or rate reductions. Refunds need not be proportional when prior payments are impractical to identify or return. When annual district revenue is less than annual payments on general obligation bonds, pensions, and final court judgments, (4) (a) and (7) shall be suspended to provide for the deficiency.

(2) Term definitions. Within this section:

(a) "Ballot issue" means a non-recall petition or referred measure in an election.

(b) "District" means the state or any local government, excluding enterprises.

(c) "Emergency" excludes economic conditions, revenue shortfalls, or district salary or fringe benefit increases.

(d) "Enterprise" means a government-owned business authorized to issue its own revenue bonds and receiving under 10% of annual revenue in grants from all Colorado state and local governments combined.

(e) "Fiscal year spending" means all district expenditures and reserve increases except, as to both, those for refunds made in the current or next fiscal year or those from gifts, federal funds, collections for another government, pension contributions by employees and pension fund earnings, reserve transfers or expenditures, damage awards, or property sales.

(f) "Inflation" means the percentage change in the United States Bureau of Labor Statistics Consumer Price Index for Denver-Boulder, all items, all urban consumers, or its successor index.

(g) "Local growth" for a non-school district means a net percentage change in actual value of all real property in a district from construction of taxable real property improvements, minus destruction of similar improvements, and additions to, minus deletions from, taxable real property. For a school district, it means the percentage change in its student enrollment.

(3) Election provisions.

(a) Ballot issues shall be decided in a state general election, biennial local district election, or on the first Tuesday in November of odd-numbered years. Except for petitions, bonded debt, or charter or constitutional provisions, districts may consolidate ballot issues and voters may approve a delay of up to four years in voting on ballot issues. District actions taken during such a delay shall not extend beyond that period.

(b) At least 30 days before a ballot issue election, districts shall mail at the least cost, and as a package where districts with ballot issues overlap, a titled notice or set of notices addressed to "All Registered Voters" at each address of one or more active registered electors. The districts may coordinate the mailing required by this paragraph (b) with the distribution of the ballot information booklet required by section 1 (7.5) of article V of this constitution in order to save mailing costs. Titles shall have this order of preference: "NOTICE OF ELECTION TO INCREASE TAXES/TO INCREASE DEBT/ON A CITIZEN PETITION/ON A REFERRED MEASURE." Except for district voter-approved additions, notices shall include only:

(i) The election date, hours, ballot title, text, and local election office address and telephone number.

(ii) For proposed district tax or bonded debt increases, the estimated or actual total of district fiscal year spending for the current year and each of the past four years, and the overall percentage and dollar change.

(iii) For the first full fiscal year of each proposed district tax increase, district estimates of the maximum dollar amount of each increase and of district fiscal year spending without the increase.

(iv) For proposed district bonded debt, its principal amount and maximum annual and total district repayment cost, and the principal balance of total current district bonded debt and its maximum annual and remaining total district repayment cost.

(v) Two summaries, up to 500 words each, one for and one against the proposal, of written comments filed with the election officer by 45 days before the election. No summary shall mention names of persons or private groups, nor any endorsements of or resolutions against the proposal. Petition representatives following these rules shall write this summary for their petition. The election officer shall maintain and accurately summarize all other relevant written comments. The provisions of this subparagraph (v) do not apply to a statewide ballot issue, which is subject to the provisions of section 1 (7.5) of article V of this constitution.

(c) Except by later voter approval, if a tax increase or fiscal year spending exceeds any estimate in (b) (iii) for the same fiscal year, the tax increase is thereafter reduced up to 100% in proportion to the combined dollar excess, and the combined excess revenue refunded in the next fiscal year. District bonded debt shall not issue on terms that could exceed its share of its maximum repayment costs in (b) (iv). Ballot titles for tax or bonded debt increases shall begin, "SHALL (DISTRICT) TAXES BE INCREASED (first, or if phased in, final, full fiscal year dollar increase) ANNUALLY...?" or "SHALL (DISTRICT) DEBT BE INCREASED (principal amount), WITH A REPAYMENT COST OF (maximum total district cost), ...?"

(4) Required elections. Starting November 4, 1992, districts must have voter approval in advance for:

(a) Unless (1) or (6) applies, any new tax, tax rate increase, mill levy above that for the prior year, valuation for assessment ratio increase for a property class, or extension of an expiring tax, or a tax policy change directly causing a net tax revenue gain to any district.

(b) Except for refinancing district bonded debt at a lower interest rate or adding new employees to existing district pension plans, creation of any multiple-fiscal year direct or indirect district debt or other financial obligation whatsoever without adequate present cash reserves pledged irrevocably and held for payments in all future fiscal years.

(5) Emergency reserves. To use for declared emergencies only, each district shall reserve for 1993 1% or more, for 1994 2% or more, and for all later years 3% or more of its fiscal year spending excluding bonded debt service. Unused reserves apply to the next year's reserve.

(6) Emergency taxes. This subsection grants no new taxing power. Emergency property taxes are prohibited. Emergency tax revenue is excluded for purposes of (3) (c) and (7), even if later ratified by voters. Emergency taxes shall also meet all of the following conditions:

(a) A 2/3 majority of the members of each house of the general assembly or of a local district board declares the emergency and imposes the tax by separate recorded roll call votes.

(b) Emergency tax revenue shall be spent only after emergency reserves are depleted, and shall be refunded within 180 days after the emergency ends if not spent on the emergency.

(c) A tax not approved on the next election date 60 days or more after the declaration shall end with that election month.

(7) Spending limits.

(a) The maximum annual percentage change in state fiscal year spending equals inflation plus the percentage change in state population in the prior calendar year, adjusted for revenue changes approved by voters after 1991. Population shall be determined by annual federal census estimates and such number shall be adjusted every decade to match the federal census.

(b) The maximum annual percentage change in each local district's fiscal year spending equals inflation in the prior calendar year plus annual local growth, adjusted for revenue changes approved by voters after 1991 and (8) (b) and (9) reductions.

(c) The maximum annual percentage change in each district's property tax revenue equals inflation in the prior calendar year plus annual local growth, adjusted for property tax revenue changes approved by voters after 1991 and (8) (b) and (9) reductions.

(d) If revenue from sources not excluded from fiscal year spending exceeds these limits in dollars for that fiscal year, the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Initial district bases are current fiscal year spending and 1991 property tax collected in 1992. Qualification or disqualification as an enterprise shall change district bases and future year limits. Future creation of district bonded debt shall increase, and retiring or refinancing district bonded debt shall lower, fiscal year spending and property tax revenue by the annual debt service so funded. Debt service changes, reductions, (1) and (3) (c) refunds, and voter-approved revenue changes are dollar amounts that are exceptions to, and not part of, any district base. Voter-approved revenue changes do not require a tax rate change.

(8) Revenue limits.

(a) New or increased transfer tax rates on real property are prohibited. No new state real property tax or local district income tax shall be imposed. Neither an income tax rate increase nor a new state definition of taxable income shall apply before the next tax year. Any income tax law change after July 1, 1992 shall also require all taxable net income to be taxed at one rate, excluding refund tax credits or voter-approved tax credits, with no added tax or surcharge.

(b) Each district may enact cumulative uniform exemptions and credits to reduce or end business personal property taxes.

(c) Regardless of reassessment frequency, valuation notices shall be mailed annually and may be appealed annually, with no presumption in favor of any pending valuation. Past or future sales by a lender or government shall also be considered as comparable market sales and their sales prices kept as public records. Actual value shall be stated on all property tax bills and valuation notices and, for residential real property, determined solely by the market approach to appraisal.

(9) State mandates. Except for public education through grade 12 or as required of a local district by federal law, a local district may reduce or end its subsidy to any program delegated to it by the general assembly for administration. For current programs, the state may require 90 days notice and that the adjustment occur in a maximum of three equal annual installments.

Referendum C of 2005

Referendum C, approved by voters in 2005, authorized the state to retain and spend all of the money it collected above the TABOR limit on healthcare, public education, transportation projects, and local fire and police pensions for five years beginning with fiscal year (FY) 2005-06. During these five years, Colorado residents did not receive the refunds they would have otherwise received under TABOR. After the five-year period, referred to as "the timeout period," Referendum C authorized the state to permanently retain and spend revenue up to a cap, referred to as "the Referendum C cap" (equaling FY 2007-08 revenues adjusted by inflation plus population growth), beginning in FY 2010-11.

When state voters approve a tax increase or other revenue change, the resulting revenues are exempt from the TABOR limit on fiscal year spending. Below is a chart by the Colorado Legislative Council Staff detailing revenue limits under TABOR:

TABOR ballot measures

Note: This list includes measures that were required to be referred to the ballot for voter approval under TABOR. The list does not include every ballot measure that may have had a potential effect on TABOR refund amounts.

Since 1992, when TABOR was adopted, through 2024, Colorado voters have decided on 40 statewide ballot measures that were designed to increase revenue for the state, which required voter approval under TABOR. Of the 40 measures, 14 (35%) were approved and 26 (65%) were defeated.

Of the 40 measures, 21 were referred to the ballot by the state legislature and 19 were placed on the ballot through citizen initiative petitions.

• Of the 21 referred measures, 13 (61.90%) were approved and eight (38.10%) were defeated.
• Of the 19 citizen-initiated measures, one (5.26%) was approved and 18 (94.74%) were defeated.

Ballot measure	Type	Year	Purpose	Outcome	Description
Referendum A	LRSS	1993	New tax	d	Reinstated the 0.2 percent sales tax on tourist-related items that were eliminated by a TABOR amendment and used funds for statewide tourism marketing and promotional programs by the Colorado Tourism Board
Amendment 1	CICA	1994	Tax increase	d	Increase tobacco taxes for health care, educational programs to reduce tobacco use and research concerning tobacco use and tobacco-related illnesses
Referendum D	BI	1996	Retain and spend revenue	d	Excluded funds for state unemployment compensation from fiscal limitations
Initiative 1	CICA/SS	1997	Tax increase	d	Increase taxes to fund the Transportation Department through increases in the fuel excise tax by 5¢ per gallon, the motor vehicle registration fee by $10 and a new tax of $100 on the initial registration of certain motor vehicles
Referendum B	LRSS	1998	Retain and spend revenue	d	Allow the state to keep up to two hundred million dollars in excess revenue for the funding of school district capital construction projects, state and local transportation needs and capital construction projects of state colleges and universities
Referendum A	BI	1999	Debt increase (bond issue)	a	Increase debt by issuing bonds to fund transportation projects
Referendum E	LRSS	2000	Retain and spend revenue	a	Create multistate lottery and retain and spend proceeds to use for education funding
Referendum F	LRSS	2000	Retain and spend revenue	d	Retain and spend funds for the 1999-2000 fiscal year and for four succeeding fiscal years for the purpose of funding performance grants for school districts to improve academic performance in math and science
Referendum A	BI	2001	Debt increase (bond issue)	a	Increase debt by issuing bonds and using revenue to fund the Great Outdoors Colorado Trust Fund
Amendment 26	CISS	2001	Retain and spend revenue	d	Retain and spend revenue to fund the creation a fixed guideway transportation system connecting the Denver International Airport and Eagle County Airport
Referendum A	BI	2003	Debt increase (bond issue)	d	Increase debt by issuing bonds and retaining bond proceeds as a voter-approved revenue change
Amendment 33	CICA	2003	New tax	d	Create video lottery and collect taxes and fees to fund tourism promotion
Initiative 32	CICA	2003	Tax increase	d	Set property tax valuation and eliminate the annual adjustment of the ratio that insures that the percentage of the total statewide assessed value attributable to residential real property remains the same as it was in the previous year
Amendment 35	CICA	2004	Tax increase	a	Increase tobacco tax to pay for educational and preventative medicine health programs
Referendum D	BI	2005	Debt increase (bond issue)	d	Increase debt by issuing bonds and retaining bond proceeds as a voter-approved revenue change
Referendum C	LRSS	2005	Retain and spend revenue	a	Retain and spend revenue collected over its TABOR limit for five years on health care, public education, transportation projects, and local fire and police pensions; created a new "Referendum C Cap" on state revenue
Referendum H	LRSS	2006	Eliminate tax exemption	a	Eliminated a state income tax benefit for businesses employing undocumented immigrants
Amendment 58	CICA/SS	2008	Tax increase; eliminating severance tax credit and reducing certain exemptions	d	Increase the oil and gas severance tax and eliminated a property-tax deduction against the tax to fund college scholarships, wildlife presevation, energy efficiency programs, transportation projects, and water projects
Amendment 51	CICA	2008	Tax increase	d	Increase sales tax rate to provide funding for long-term services for persons with developmental disabilities.
Proposition 103	CICA/SS	2011	Tax increase	d	Increase income tax rate and sales tax rate
Proposition AA	LRSS	2013	New tax	a	Establish taxes on marijuana sales
Amendment 66	CICA	2013	Tax increase	d	Increase income tax rates
Amendment 68	CICA	2014	New tax	d	Creating a new tax on horse race gambling and dedicating revenue to fund education
Proposition BB	LRSS	2015	Retain and spend revenue above previously-authorized estimates	a	Retain $66 million in collected marijuana tax revenue that exceeded Blue Book estimates (Proposition AA of 2013)
Amendment 69	CICA	2016	Tax increase	d	Increase payroll taxes to fund universal healthcare coverage for Colorado residents
Amendment 72	CICA	2016	Tax increase	d	Increase tobacco tax to fund health and education programs
Amendment 73	CICA/SS	2018	Tax increase	d	Establish an income tax bracket system rather than a flat income tax rate and increase income taxes for individuals earning more than $150,000 per year
Proposition 109	CISS	2018	Debt increase (bond issue)	d	Increase debt by issuing bonds of up to $3,500,000,000, with a maximum repayment cost of $5,200,000,000, with proceeds to be retained as a voter-approved revenue change and spent on transportation projects
Proposition 110	CISS	2018	Tax increase; debt increase (bond issue)	d	Increase state sales tax and increase state debt to fund transportation projects
Proposition CC	LRSS	2019	Retain and spend revenue	d	Allow the state to retain and spend all the revenue it annually collects after June 30, 2019, to provide funding for transportation and education
Proposition DD	LRSS	2019	New tax	a	Legalize sports betting and establish a tax on sports betting operator proceeds to fund state water projects
Proposition EE	LRSS	2020	Tax increase; new tax	a	Establish a tax on nicotine products such as e-cigarettes, increase cigarette and tobacco taxes; and dedicate revenues to various health and education programs
Amendment 78	CICA/SS	2021	Retain and spend revenue	d	Allow the state to retain and spend all custodial money and earnings and revenue on that custodial money as a voter-approved revenue change
Proposition 119	CISS	2021	Tax increase	d	Increase marijuana sales tax and establish a program for out-of-school learning
Proposition 120	CISS	2021	Retain and spend revenue	d	Increase sales tax to create a home and community-based services fund
Proposition FF	LRSS	2022	Reduce income tax deductions	a	Reduce income tax deduction amounts and use revenues to fund school meals program
Proposition HH	LRSS	2023	Reduce income tax deductions	d	Change property tax rates and state revenue limits (reducing residential property tax assessment rates and reduce TABOR refund amounts)
Proposition II	LRSS	2023	Retain and spend revenue above previously-authorized estimates	a	Allow the state to keep and utilize excess revenue ($23.65 million) generated from increased and new tobacco, cigarette, and nicotine taxes approved by voters in 2020 through Proposition EE
Proposition JJ	LRSS	2024	Retain and spend revenue above previously-authorized estimates	a	Allow the state to retain tax revenue collected above $29 million annually from the tax on sports betting proceeds authorized by voters in 2019
Proposition KK	LRSS	2024	New tax	a	Levy a 6.5% excise tax on the manufacture and sale of firearms and ammunition to be imposed on firearms dealers, manufacturers, and ammunition vendors and appropriating the revenue to the Firearms and Ammunition Excise Tax Cash Fund to be used to fund crime victim services programs, mental and behavioral health programs for children and veterans, and school security and safety programs

See also

• Colorado ballot measures
• Colorado Taxpayer Bill of Rights, Initiative 1 (1992)

External links

• Colorado Legislative Council Staff: TABOR