Published by CTBC Director on 08 Jan 2011
Taxes on Fees (that are really taxes anyway)
One more example of how the Colorado Supreme Court has aided and abetted another unconstitutional assault on your wallet was recently highlighted in an informative article by Face The State’s Peter Blake, “One used-tire fee drives another” (the article also appeared in the Denver Daily News). The article traces the mutation of the “used-tire fee” from it’s original purpose of collecting funds to offset the cost of recycling used tires to become just another slush fund for special interests:
The used-tire fee has been something of a fiasco for years. It started as a $1 fee (not payable if you took your tires home) in 1993 but even at the beginning, the proceeds were used more for other recycling projects than for tire disposal. Inevitably, other interest groups with no connection to tires also horned in on the booty, even higher education.
Such transformation of a “use fee” (tied to consumption of, or access to, a particular good or service) to other purposes makes it a tax - and, since it continues to be collected (now for different purposes than the original basis for the “fee” - qualifying as a tax policy change under the Colorado Constitution’s Article X, Section 20) an unconstitutional taking and an assault on your wallet.
First, the state recycling fee is no longer tied to your surrendering your old tires. Thanks to a bill passed in 2009, the $1.50 is now charged on each new tire you buy. You have to pay even if you take your old tires home and hang them in the backyard to swing on or throw footballs through. That would seem to make it not a fee at all but an increase in the sales tax-an unconstitutional one, since it wasn’t approved by the voters. But it’s never been challenged because everybody knows the Colorado Supreme Court, which hates TABOR and doesn’t care how the legislature raises money, would reject the argument.
The Colorado legislature - aided and abetted by the Colorado Supreme Court - has been operating outside the law. The Colorado Constitution enshrines the right of the citizenry to have a say in how much of their hard-earned money can be taken from them; we have the right to vote on tax increases, by whatever name (and yes, that includes taxes masquerading as “fees”). However creatively defined - if it looks like a tax, and quacks like a tax - it’s a tax, and you have the right to have your say at the ballot box before any new tax or tax increase goes into effect.
The fight to reform Colorado’s corrupt legal/judicial complex continues. Clear The Bench Colorado is working to hold the consortium of legal-establishment special-interest groups who attempted (and may have succeeded in) buying the election for their buddies on the bench accountable for violations of Colorado campaign finance law. Longer term, Clear The Bench Colorado will work with legislators and others interested in reforming the systemic shortcomings of Colorado’s “merit selection & retention” system to increase transparency and accountability to the public. For both of those endeavors, we would appreciate your continued support - via your comments (Sound Off!) and, yes, your contributions. Freedom isn’t free -nor is it always easy to be a Citizen, not a subject.
Ultimately, though - it’s worth the effort.
