Clear the Bench Colorado » Joint Budget Committee

Published by CTBC Director on 01 Dec 2009

Colorado Supreme Court “Mill Levy Tax Freeze” ruling back in the news as lawmakers take aim at “What’s in YOUR wallet”

As the Colorado Legislature’s Joint Budget Committee meets this week to “review agency budgets in advance of the 2010 General Assembly” (and you thought your wallet and property were only at risk while the legislature is IN session), last year’s Colorado Supreme Court ruling upholding the blatantly unconstitutional “Mill Levy Tax Freeze” is back in the news:

In 2010, the JBC will consider both budget and tax policy — the latter a result of the Colorado Supreme Court’s decision last year in Mesa County Bd. of County Comm’rs v. State of Colorado.
Because of the opinion, which redefined the phrase “tax policy change,” state lawmakers are now free to increase state revenue by more than $2 billion by repealing tax credits and exemptions most had considered untouchable under the Taxpayer’s Bill of Rights, or TABOR. It’s expected that the JBC will play a leading role in which corporate- and sales-tax exemptions to keep and which to kill. (Related reading: A Chink In TABOR’s Armor: Mill-Levy Ruling Reverberates Widely)

As Clear The Bench Colorado has noted for months, the Colorado Supreme Court ruling did more than just lock in an upwards ratchet on property taxes with the “Mill Levy Tax Freeze” ruling - it also opened the door to millions - even billions - in new taxes on the hard-pressed citizens of Colorado by eliminating long-standing constitutional protections for a long list of existing tax credits and exemptions, allowing the legislature to impose what are in effect substantial new taxes without a vote of the people, as has been required under the Taxpayer’s Bill of Rights, or TABOR.

Just for “fun” - try the “New Tax Lottery” - brought to you courtesy of the Colorado Supreme Court’s ruling upholding “Backdoor Bill” Ritter’s “Mill Levy Tax Freeze”. (View the list, then take the survey).

Outraged?  You should be - and the Mullarkey Majority on the Colorado Supreme Court is primarily to blame, for blatantly disregarding constitutional limits and undermining the rule of law.

Fortunately, in the coming election year (November 2010), We The People have a constitutional remedy already in place: exercise YOUR right to vote “NO” on retaining the four unjust justices of the Mullarkey Majority (Justices Michael Bender, Alex Martinez, Nancy Rice, and Chief Justice Mary Mullarkey herself).  They need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your homes and business from seizure by rapacious governments, and your right to enjoy rights and benefits of the rule of law, not rule by activist, agenda-driven “justices.” DON’T GIVE IT TO THEM!  Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO” vote as these unjust justices stand for retention in Nov. 2010!

Published by CTBC Director on 09 Apr 2009

Supreme Court Ruling Opens Door to Millions in New Taxes

The Colorado Supreme Court’s recent ruling to sanction Governor Bill Ritter’s backdoor tax increase on the people of Colorado (the so-called Mill Levy Tax “Freeze”) - overturning both the trial court who had found the tax increase unconstitutional and the will of the people, as previously expressed by rejecting a nearly-identical measure to freeze Colorado’s mill levy tax rates (Amendment 32) - was bad enough, costing Colorado taxpayers over $117 million this year alone.

BUT WAIT, THERE’S MORE: additional language buried deep “in the middle of the 45-page opinion” opens the door to millions more - up to $2 Billion more - in additional taxes, without asking voters for their permission, as required by TABOR.

State Legislature staff lawyer Sharon Eubanks briefed the Joint Budget Committee “with her shocking analysis of [the] recent state Supreme Court decision, which she says gives legislators the right to raise taxes without a vote of the people.”

John Ziegler, staff director of the Joint Budget Committee, then provided legislators a list of several tax credits that were now “fair game” under the interpretation - totalling almost $2 Billion in potential “new” tax revenue.  (Just for fun - review the list and see how many new taxes YOU might get to pay once the legislature puts them into effect (take the survey and/or post comments below).  I tallied up 6-9 additional taxes I would have to pay, depending on how I spend my week - but I’m not a smoker (although I DO buy groceries, gas, use the internet, a cellphone, etc.).

Of course, if you are a smoker, it didn’t take long to become the first target for new taxes.  Within a few short hours after hearing the legal analysis,

the JBC made its first move to take advantage of its possible new power.  Rep. Mark Ferrandino, D-Denver, asked the JBC to sponsor a bill to repeal a cigarette tax exemption, and the panel agreed.

In 1969, the Legislature exempted cigarettes from sales taxes, even though they are still subject to an 84-cent-per-pack state excise tax and a $1.01 per pack federal tax.  The sales-tax exemption is worth $30 million a year.

Outraged yet? You’re not alone.  House Minority Leader Mike May, R-Parker, issued a “harshly worded statement” condemning the ruling:

The Constitution is not a book of suggestions, it is the law.  I’m astounded at the arrogant presumption of authority over an area of the budget long thought to be clearly marked off limits by the Constitution.  Particularly at a time when Colorado taxpayers are tightening their belts, we should be doing the same before we take more of their money.  I believe that much more thought should have been given to this opinion before we embark on going into such uncharted territory.

Vince Carroll of the Denver Post editorial board weighed in with a scathing essay (Blowing the Lid Off TABOR) slamming the court:

Maybe it truly didn’t realize how its ruling last month justifying a property tax grab by state officials sets up Coloradans to be nibbled to death by one tax hike after another.

Forgive them, for they know not what they do? Not so much.  Sen. Al White, R-Hayden, indicates that the Supremes (particularly ueber-partisan Chief Justice Mullarkey, who wrote the opinion) knew exactly what they were doing:

I suppose there could be a lawsuit, but a lawsuit on a Supreme Court ruling will end up right back at the Supreme Court.

Jon Caldara, president of the Independence Institute, expressed similar sentiments:

The Supreme Court will back the Legislature if it wants to repeal tax credits…

What lawyer would recommend us to go through (with a lawsuit) when you’ve got a Supreme Court that is willing to redefine words to defeat TABOR?

Instead of spending money for lawsuits, it might be better to spend the money on efforts to remake the court.

‘At some point, something’s got to be done to bring the courts back into line with the law.  I’m not sure what it is,’ Caldara said.

Indeed - something’s got to be done.

Vote NO on retaining the four rogue Supreme Court justices - Mullarkey, Bender, Martinez, and Rice - in 2010.