Local Government Tax Payers' Bill of Rights Prior Voter Approval Requirement
The passage of HB1026 represents a significant shift in fiscal policy concerning local government revenue management. By putting a time-bound requirement on previously approved retention of excess revenues, the bill aims to ensure that decisions affecting taxation reflect current voter preferences and economic conditions. This approach emphasizes generational tax equity, asserting that past voters should not indefinitely bind current and future taxpayers to tax policies they no longer support.
House Bill 1026 mandates that local governments in Colorado must seek reauthorization from voters to retain any revenue exceeding the limits established by the Taxpayer's Bill of Rights (TABOR) as per Article X, Section 20 of the Colorado Constitution. Since the inception of TABOR in 1992, local governments have successfully held waiver elections, allowing them to keep excess revenue, but the current law does not impose a time limit on these approvals. HB1026 introduces a requirement that any local government exceeding these fiscal limits must resubmit for voter approval by the fall of 2029 if the original waiver was approved before November 9, 2020.
The bill has sparked debate around the implications for local autonomy and financial stability. Proponents argue that it fosters accountability and responsiveness in local governance, allowing taxpayers to reassess and reaffirm their preferences regarding revenue retention. On the other hand, critics contend that frequent re-voting could disrupt local government operations and budgeting processes, complicating long-term fiscal planning. This potential controversy raises questions about the balance between necessary oversight and the operational independence of local governments.