vehicle registration fee increase
The Colorado Car Tax – er, ‘FASTER’ “vehicle registration fee” increase – court challenge moves forward
The Colorado Car Tax (er, “vehicle registration fee”) increase passed in 2009 (SB108, the so-called “FASTER” bill) is quite possibly THE most unpopular tax increase in Colorado history – made all the more repugnant by how it became law (exploiting a 2008 Colorado Supreme Court ruling which declared that “fees” don’t count as “taxes” to circumvent the constitutional requirement (under Colorado Constitution Article X, Section 20 – Taxpayer’s Bill of Rights, a.k.a. TABOR) to receive prior voter approval for any ‘policy change resulting in net revenue gain’ to the state).
After two years of legislative inaction failed to repeal or roll back the unconstitutional and unpopular tax increase, the ‘FASTER’ Colorado Car Tax is being challenged in court as a violation of the Colorado state Constitution (specifically, Colorado Constitution Article X, Section 20 – Taxpayer’s Bill of Rights, TABOR).
The most recent development in the case (the ‘FASTER’ lawsuit was initially filed in May 2012) occurred last week with the filing of a ”Plaintiff’s Motion for Summary Judgment” in the case (a motion for summary judgment is filed based on the existing documentary record prior to trial claiming that all factual and legal issues can be decided in the moving party’s favor).
The Plaintiff’s Motion documents the fact that the “”Colorado Bridge Enterprise” established under the FASTER legislation as a “TABOR-exempt business enterprise” (Ed. – see, “Life in the FASTER Lane – updates on the Colorado Car Tax“) fails to meet the constitutional standard to qualify for exemption from TABOR requirements, on two main grounds:
A. The CBE Does Not Function As A Business Because It Has The Power To Levy A General Tax; and
B. The CBE Receives More Than Ten Percent Of Annual Revenue In Grants From CDOT
(including a $14.4M grant and the “gift” of 56 bridges from the Colorado Dep’t Of Transportation)
The Motion makes it crystal clear that the CBE “was created for the sole purpose of attempting to circumvent TABOR.”
Under FASTER, the CBE has forced Coloradans to pay “bridge safety surcharge” taxes approaching $100 million annually, without seeking the voter approval required by TABOR. See CBE 2010 Annual Report (“2010 Annual Report”) at 3.1 The CBE has also issued $300 million in new government bonds, again without a TABOR-required vote of the people. By taking these actions without a vote of the people, defendants have violated the rights of [Coloradans] to vote on the imposition of new taxes and debt, as guaranteed by TABOR.
The Motion further documents the self-evident statement that
The CBE is not a business enterprise exempt from TABOR because it generates revenue by levying a general tax, rather than by engaging in market transactions. TABOR-exempt enterprises may not levy taxes, because “[t]he ability to levy general taxes is inconsistent with the characteristics of a business.”
The purported “business” character of the CBE is belied by how it “makes” money:
The CBE’s revenue is not derived from “market exchanges taking place in a competitive, arms-length manner,” but rather from the bridge safety surcharge—a compulsory tax collected without regard to any benefits conferred to payers.
Calling the Colorado Car Tax a “fee” is also belied by the nature of how it is levied, on whom, and who “benefits” from the charge; calling it a “fee”
does not comport with reality because the surcharge shares none of the characteristics of a fee as defined by the Colorado Supreme Court and is not levied to provide “a specific service to the persons upon whom the fee is imposed and at rates reasonably calculated based on the benefits received by such persons.”
The surcharge is therefore a tax, and not a fee.
Colorado taxpayers have been forced to pay literally $100 Million per year in additional ‘FASTER’ taxes (under the label of “fees”) while simultaneously becoming obligated for over $300 Million in debt – all without a vote of the people, as required under Colorado’s Constitution.
The lawsuit seeks to prevent “continued enforcement and maintenance of the bridge safety surcharge” (i.e. stop the illegal collection of a portion of the Colorado Car Tax) and require that “all “[r]evenue collected, kept, or spent illegally” be refunded” – as mandated under the Colorado Constitution.
Now THAT would be a welcome “tax refund” for all Coloradans.
Clear The Bench Colorado will, with your support, continue to promote transparency and accountability in the Colorado judiciary, informing the public to increase awareness of the substantial public policy implications of an unrestrained activism and political agendas in the courts. We will continue to work to educate voters and provide information of relevance related to the judicial branch, and to provide useful and substantive evaluations of judicial performance.
However, we can’t do it alone – we need 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.
The Colorado Car Tax – er, ‘FASTER’ “vehicle registration fee” increase – challenged in court as violation of state Constitution
The Colorado Car Tax (er, “vehicle registration fee”) increase passed in 2009 (SB108, the so-called “FASTER” bill) is quite possibly THE most unpopular tax increase in Colorado history – made all the more repugnant by how it became law (exploiting a 2008 Colorado Supreme Court ruling which declared that “fees” don’t count as “taxes” to circumvent the constitutional requirement (under Colorado Constitution Article X, Section 20 – Taxpayer’s Bill of Rights, a.k.a. TABOR) to receive prior voter approval for any ‘policy change resulting in net revenue gain’ to the state).
After two years of legislative inaction failed to repeal or roll back the unconstitutional and unpopular tax increase, the ‘FASTER’ Colorado Car Tax is being challenged in court as a violation of the Colorado state Constitution (specifically, Colorado Constitution Article X, Section 20 – Taxpayer’s Bill of Rights, TABOR).
Despite being a central issue in the 2010 elections (Democrat Governor Bill Ritter chose not to seek re-election in large part because of the tax increase’s unpopularity; Senate sponsor Dan Gibbs also chose not to seek re-election; and House Sponsor Joe Rice was defeated by now-Representative Kathleen Conti largely on the strength of her campaigning on the Car Tax issue), the legislature has failed to overturn the clearly unconstitutional tax (or address other unconstitutional aspects of the legislation, including establishment of unaccountable “government-owned enterprises” to administer the tax – er, “fee” – collections and revenues).
It has long been clear that the proper venue for overturning this highly unpopular, regressive, and unconstitutional tax increase is NOT via the legislature (which is unwilling or unable to act) but via a court challenge. Unfortunately, as long as the actively anti-TABOR “Mullarkey Majority” (and its successors) ruled the Colorado Supreme Court, prospects for a reasonable hearing on the merits (and interpretation actually based on the Colorado Constitution, as written) have been bleak.
However, due to recent changes in the composition of the state’s highest court (blatantly partisan and anti-TABOR Chief Justice Mary Mullarkey quit rather than face voters in 2010 and Mullarkey ally Justice Alex Martinez quit the court to take a Denver city job last Fall), along with the impending retirement of Mullarkey’s heir as Chief Justice (Michael Bender), a lawsuit challenging the ‘FASTER’ Colorado Car Tax (er, “vehicle registration fee”) increase might now have a chance.
Apparently judging the time to be ripe, the TABOR Foundation – represented by the Mountain States Legal Foundation – filed suit today (21 May 2012) challenging the constitutionality of the 2009 ‘FASTER’ Colorado Car Tax. From the organization’s press release:
“In clear violation of TABOR, the General Assembly enacted and CDOT implemented a scheme to levy taxes and raise revenues without a vote of the people of Colorado,” William Perry Pendley of the Mountain States Legal Foundation, said in a statement.
The lawsuit targets not only the over $100 Million in (unconstitutionally-imposed) new taxes levied, but also the $300 million in new government bonds imposed by the Colorado Bridge Enterprise (one of the constitutionally dubious quasi-government “enterprises” established under the ‘FASTER’ law).
The Foundation seeks declaratory and injunctive relief and an order requiring refund of all revenues collected, along with the payment of interest, as required by TABOR.
The TABOR Foundation’s lawsuit highlights the fact that legislative action alone is frequently inadequate in preserving rights and freedoms – bad laws can (and should) be struck down by citizens (working alone or in groups) defending their rights in court. The fact that it took years before the conditions were conducive to a court challenge also highlights the fact that elections to legislative or executive office are not the only votes that matter – underlining the critical importance of the judicial accountability movement spearheaded beginning in 2009 by Clear The Bench Colorado.
Clear The Bench Colorado will, with your support, continue to promote transparency and accountability in the Colorado judiciary, informing the public to increase awareness of the substantial public policy implications of an unrestrained activism and political agendas in the courts. We will continue to work to educate voters and provide information of relevance related to the judicial branch, and to provide useful and substantive evaluations of judicial performance.
However, we can’t do it alone – we need 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.
Life in the FASTER lane – updates on the Colorado Car Tax
Surely make you lose your mind…
The Colorado Car Tax (er, “fee”) increase – ironically dubbed ‘FASTER’ – passed in the 2009 legislative session made another lap in media coverage this past week with a broadcast on the ‘Devil’s Advocate‘ television program and publication of a pair of “Issue Backgrounder” papers.
The “Issue Backgrounder” papers each address a specific aspect of the FASTER legislation, focusing in on the “Bridge Enterprise” (a ‘government-owned business’ within the Colorado Department of Transportation, or CDOT). One paper addresses how the “Bridge Enterprise” has raised $300M in debt without (constitutionally-required) voter approval (and the long-term implications for Colorado’s fiscal stability); the other more generally addresses how the Colorado Bridge Enterprise contravenes the Colorado Constitution.
Both papers are well worth reading, and provide additional detail on just how bad even this single aspect of the FASTER Colorado Car Tax (er, “fee”) is for Colorado citizens.
However, both papers together only tell half of the story (almost literally). The ‘Colorado Bridge Enterprise’ is only one of two new ‘government-owed businesses’ established by the FASTER legislation (the other being the ‘Colorado Transportation Enterprise’ charged with collecting and spending the ‘road safety surcharge’ tax – er, “fee”) . Both “enterprises” are overseen by an 11-member appointed (ergo, unaccountable to the public) board (coincidentally, the same 11 people who make up the Colorado Transportation Commission). Significantly (although unfortunately unremarked in both papers), both ‘enterprises’ are also authorized to use eminent domain to seize private property.
The television broadcast is informative and entertaining as well, but unfortunately also misses significant parts of the story.
The Colorado Car Tax – It’s Worse Than You Think
Also unremarked in both papers – and on the television broadcast as well – is the fact that FASTER actually comprises multiple tax increases (er, “fees”) in a single piece of legislation, blatantly violating the constitutional requirements to “receive voter approval in advance” for “any new tax, 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.” (Colorado Constitution, Article X, Section 20 – the ‘Taxpayer’s Bill of Rights’). The “bridge fund fee” and the “road safety surcharge fee” increase each year for three years (yep, that’s 3 tax increases in one!), in addition to imposing an entirely separate “fee” on car rentals as well. Oh, and don’t forget the “late fees” too…
But all of this is necessary “to preserve our crumbling transportation infrastructure,” right? That was the justification for passing the bill – along with claims that any and all “fees” collected “shall be used exclusively for the construction, maintenance, and supervision of the public highways of the state.” Says so right in the legislative language (43-4-810), so it must be true, correct?
Not so much. The dirty little secret of the FASTER bill is that many of the taxes (er, “fees”) collected don’t go towards the construction or maintenance of roads or bridges at all, but for “multi-modal and demand-side transportation solutions” – such as the desire of certain state Senators for streetcars in Denver – justified by other language in a following section (43-4-812):
43-4-812. Use of user fees for transit – legislative declaration.
(2) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE FUNDING OF TRANSIT-RELATED PROJECTS AUTHORIZED BY SUBSECTION (1) OF THIS SECTION CONSTITUTES MAINTENANCE AND SUPERVISION OF STATE HIGHWAYS BECAUSE IT WILL HELP TO REDUCE TRAFFIC ON STATE HIGHWAYS AND THEREBY REDUCE WEAR AND TEAR ON STATE HIGHWAYS AND BRIDGES AND INCREASE THEIR RELIABILITY, SAFETY, AND EXPECTED USEFUL LIFE.
In fact, the bill MANDATES state spending of $10 Million per year on “transit-related projects.”
It’s an outrageous semantic shell game – and a blatant violation of your constitutional rights.
To sum up: the “FASTER” car tax increase raised vehicle registration fees by $22.50-55 per vehicle, including a “road safety surcharge fee” of $16-$39 per vehicle, PLUS a “bridge fund fee” of $13-$32 per vehicle (phased in at 50%/75%/100% each of the first 3 years ). Plus mandatory “late fees” of $25/month (capped at $100) – for all “vehicles” (including trailers barely even worth that much).
All while creating two new ‘government-owned’ bureaucracies with power to spend, borrow, & seize private property unconstrained by the Taxpayer’s Bill of Rights and not accountable to the people.
Oh, and increasing mandatory spending by over $10 Million per year on purposes other than roads, bridges, or other transportation infrastructure used by those paying the “fees.”
Most of the politicians who did this to you – including Governor Bill Ritter, Senate sponsor Dan Gibbs, and House sponsor Joe Rice – have paid the political price, either quitting office or being defeated at the ballot box; however, the real culprits, without whom none of this would have been possible (thanks to a Nov. 2008 court ruling to allow “fees” to act like taxes, in violation of your constitutional rights) escaped justice (except for Chief Justice Mary Mullarkey, who quit rather than face the voters, the remaining members of the Colorado Supreme Court who aided and abetted FASTER were retained in office for another 10-year term).
Unfortunately, these politicians in black robes remain ‘at large’ and able to continue to assault your constitutional rights for years to come.
Clear The Bench Colorado will, with your support, continue to promote transparency and accountability in the Colorado judiciary, informing the public to increase awareness of the substantial public policy implications of an unrestrained activism and political agendas in the courts. We will continue to work to educate voters and provide information of relevance related to the judicial branch, and to provide useful and substantive evaluations of judicial performance.
However, we can’t do it alone – we need 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.
Friday Funnies: Colorado Supreme Court promotes lawlessness
A rash of recent thefts may have been inspired by a Colorado Supreme Court ruling…
The Colorado Supreme Court’s ‘Gang of Four’ under their ringleader Chief Justice Mary Mullarkey (who’s skipping town rather than face justice in November) have gotten away with a series of crimes against our Constitution over the last few years, including:
- ‘Mill Levy Tax Freeze‘ property tax increase (“Freeze!” Property tax, reach for the sky!)
- ‘Dirty Dozen‘ tax increases (2010) and the 2009 tobacco tax increase (“Hand over your Tax Credits & Exemptions“)
- ‘Colorado Car Tax’ (It ain’t a mugging – er, tax; it’s a “fee”)
- ‘Telluride Land Grab’ (What’s yours isn’t yours if WE say so)
- ‘Mary-Mandering’ legislative districts (grabbing redistricting power from the legislature, where it belongs)
The crime spree isn’t over yet; the ‘Gang of Four’ is targeting yet more tax increases and has gun rights in their sights, too.
The Colorado Supreme Court’s rampant lawlessness has apparently inspired other, more petty crimes. Recently, your uncaped crusader for justice was the victim of such a crime: my license plate was stolen (right off my car!)
How is this petty crime linked to the Colorado Supreme Court, you ask?
As I discovered this morning when at the DMV to obtain replacement plates, such thefts are far from rare; indeed, there has apparently been a rash of such thefts, since the Colorado Car Tax (er, vehicle registration “fee” increase – brought to you courtesy of the Colorado Supreme Court) went into effect a year ago. Most of the thefts seem to be inspired by the desire to avoid the punitive “late fees” – an over $31.5 Million ‘Highway Robbery’ aided and abetted by the Colorado Supreme Court.
Unintended consequences?
Criminologists (and parents) know that if bad behavior goes unpunished, it will only get worse.
Colorado has seen an intensifying pattern of bad behavior by our state supreme court over the last ten years of the Mullarkey Majority’s reign. Colorado Citizens have the right – indeed, we have the duty – to hold those behaving badly accountable, at the ballot box.
Don’t let them get away with continued bad behavior – exercise your right to vote “NO” this November on the four (er, now 3) ‘unjust justices’ of the Colorado Supreme Court’s “Mullarkey Majority” (Justices Michael Bender, Alex Martinez, Nancy Rice; soon minus Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax (er, “fee”) increases, your right to defend your home and business from being taken away through abuse of eminent domain, your right to be fairly represented in the legislature and Congress, and your right to enjoy the benefits of the rule of law, instead of suffering under rule by activist, agenda-driven “justices.” Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO“ vote against retaining these incumbent unjust justices in office for another 10 years!
Colorado Car Tax “Late Fees” = $31.5M ‘Highway Robbery’ aided and abetted by Colorado Supreme Court
Clear The Bench Colorado has alerted Colorado citizens over the last several months to the Colorado General Assembly’s underhanded tactic (Colorado Politics at its worst) of circumventing the TABOR requirement to receive voter approval before imposing or increasing taxes by playing the word game of calling the charges “fees” instead, thanks to a ruling by the Colorado Supreme Court in November 2008.
The most universally despised use of this tactic – and the one affecting the greatest number of Colorado citizens – was 2009′s Colorado Car Tax (er, registration “fee”) increase with the “FASTER” bill (SB 108).
The most universally hated – and unjust – part of the so-called FASTER bill (SB 108) is the massive (and now mandatory) imposition of “late fees”. How massive? The Denver Post reports today that Colorado drivers
paid nearly $31.5 million in penalties the first year mandatory late fees were in effect.
Last summer – the first year that the new taxes (er, “fees”) were in effect, driver outrage boiled over to such an extent that many county clerks found it necessary to hire additional security (despite the fact that the increases were not their fault). Some country clerks even took the unusual step of providing pre-addressed postcards (printed on recycled paper at little or no cost) to allow angry drivers to vent their anger at state officials (who passed the tax – er, “fee”) instead (for which they were roundly, and hypocritically, criticized by the Denver Post editorial board – which had no criticism for the thousands of taxpayer dollars wasted on propaganda in favor of the increases).
Many of the county clerks – who had previously had the discretion to impose late fees, which were usually minimal ($10, vs. $25-$100 thanks to “FASTER”) and frequently waived with proper justification, are not fans of the new “fees” despite increased revenue for their districts. Today’s Denver Post article quotes one:
Weld was one of the counties that hadn’t charged a late fee. Clerk and Recorder Steve Moreno said Friday he was amazed to learn his office collected more than $2 million in late fees the first year.
Of that, $396,160 went to Weld County and the rest to the state. Despite the extra money, Moreno still believes the fees should have stayed at $10 to be imposed at the clerk’s discretion.
“It feels like an extra tax,” he said.
Feels like an extra tax? That’s putting it mildly…
My own county clerk – Arapahoe County Clerk Nancy Doty – also criticized the vehicle “fee” increases (particularly the often unjustifiable but now mandatory “late fee”) and the questionable constitutionality of how they were passed in an article (“County Clerks Required to Enforce Legislature’s New Fees“) published almost exactly a year ago:
It adds about $32 a year to the average registration fee to pay for “Road and Bridge Safety Surcharges”-none dare call it a tax. But wait, there’s more! You used to be able to get by with a $10 late fee if you exceeded the 30 day grace period when renewing your registration. Now, it’s $25 a month, month after month, up to a maximum $100. Got an old boat trailer you take out once or twice a year? Or a hauler you run to the dump with once in awhile. You’d better send that registration card in on time, or you may end up paying more than the vehicle’s worth to re-register if you are late.
…And are these new fees really taxes that should have been voted up or down by the taxpayers? [Ed. YES! Yes, they are...]
“Why this, why right now and why no vote by the taxpayers?”
Good question. The answer, of course, is that this “highway robbery” was aided and abetted by the Colorado Supreme Court’s “Mullarkey Majority” (Chief Justice Mary Mullarkey, who recently announced that she would retire rather than be held accountable by Colorado voters this November, along with her colleagues justices Michael Bender, Alex Martinez, and Nancy Rice who remain on the November ballot seeking another 10-year term of office). The Colorado Car Tax (er, “vehicle registration fee”) increase could not have happened without the Colorado Supreme Court setting aside the Constitution to allow “fee” increases to dodge the constitutional requirement to get prior voter approval for tax increases.
Others have also noted the regressive nature of the tax (hurting most those who can least afford it) along with the multi-year increases built in to the law, saying “the pain of FASTER is just beginning.”
Adding insult to injury, much of the revenue collected by these increased “fees” is not even going to roads and bridges (the stated purpose of the legislation). That’s right – state and county governments are playing the ol’ shell game with your money, diverting it from the intended purpose (“fix roads and bridges” – a worthy goal) and using it as a general-purpose (or other special-interest) slush fund. For example, the Denver Post article points out that Jefferson County has
set aside the county’s share of more than $600,000 in late fees to be used for capital purchases and other expenses.
The “FASTER” legislation already explicitly provides for several categories of expenditure not related to “roads or bridges” – an unconstitutional diversion of funds collected as “fees” vice taxes – as noted earlier on this site and in other publications:
The dirty little secret of the FASTER bill is that many of the taxes (er, “fees”) collected don’t go towards the construction or maintenance of roads or bridges at all, but for “multi-modal and demand-side transportation solutions” – such as the desire of certain state Senators for streetcars in Denver – justified by other language in a following section (43-4-812):
43-4-812. Use of user fees for transit – legislative declaration.
(2) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE FUNDING OF TRANSIT-RELATED PROJECTS AUTHORIZED BY SUBSECTION (1) OF THIS SECTION CONSTITUTES MAINTENANCE AND SUPERVISION OF STATE HIGHWAYS BECAUSE IT WILL HELP TO REDUCE TRAFFIC ON STATE HIGHWAYS AND THEREBY REDUCE WEAR AND TEAR ON STATE HIGHWAYS AND BRIDGES AND INCREASE THEIR RELIABILITY, SAFETY, AND EXPECTED USEFUL LIFE.
In fact, the bill MANDATES state spending of $10 Million per year on “transit-related projects.”
It’s an outrageous semantic shell game – and a blatant violation of your constitutional rights.
Don’t get taken for a ride any longer – exercise your right to vote “NO” this November on the four (er, now 3) ‘unjust justices’ of the Colorado Supreme Court’s “Mullarkey Majority” (Justices Michael Bender, Alex Martinez, Nancy Rice, and soon to be minus Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax (er, “fee”) increases, your right to defend your home and business from seizure by governments abusing eminent domain, your right to be fairly represented in the legislature and Congress, and your right to enjoy the benefits of the rule of law, instead of suffering under rule by activist, agenda-driven “justices.” Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and your “NO“ vote against retaining these unjust justices on the bench for another 10 years!
The Colorado Car Tax – er, “vehicle registration fee” increase – brought to you courtesy of the Colorado Supreme Court
Clear The Bench Colorado has alerted Colorado citizens over the last several months to the Colorado General Assembly’s underhanded tactic (Colorado Politics at its worst) of circumventing the TABOR requirement to receive voter approval before imposing or increasing taxes by playing the word game of calling the charges “fees” instead – thanks to a ruling by the Colorado Supreme Court last November:
Governor Ritter, the Colorado Legislature, and the Mullarkey Majority seem to find the requirement to first ask before raising taxes (as required by TABOR) to be rather tiring – and restricting their power to accomplish their goals with your money. What to do, what to do? Simple – creatively define their way out of the restrictions; impose fees, instead of raising taxes – no need to ask the voters first; then just transfer the collected revenue (the ol’ shell game) into the general fund, so as to avoid those pesky restrictions on spending the money…
The most universally despised use of this tactic – and the one affecting the greatest number of Colorado citizens – was last year’s Colorado Car Tax increase, the so-called FASTER bill (SB 108).
It’s even worse than you think – as I discovered by researching the impacts in greater detail for the following article, published in the “Taxed Enough Already” April edition of The Constitutionalist Today monthly newspaper (add it to your “recommended reading” list).
The Colorado Car Tax – It’s Worse Than You Think
The Colorado Car Tax increase passed last year (SB108, the so-called “FASTER” bill) is quite possibly THE most unpopular tax increase in Colorado history – made all the more repugnant by how it became law (evading the TABOR requirement to receive prior voter approval for any new or increased taxes).
The deeply unpopular Car Tax has already contributed to the demise of the political careers of the bill’s main advocates: Governor Bill Ritter, who signed the bill into law, has chosen not to seek re-election rather than suffer the fate of governors in other states, including New Jersey, Virginia, and Arkansas (yes, Bill Clinton suffered his first big electoral defeat after passing a car tax increase his first term) who passed similar tax increases on vehicle registration and ownership. State Senator Dan Gibbs (D-SD16), the bill’s Senate sponsor, has likewise decided not to seek re-election. Only House sponsor Rep. Joe Rice (D-HD38) remains, and he is facing a tough re-election fight in his Republican-leaning district (Littleton) against challenger Kathleen Conti , who is sure to use the car tax issue against him during the campaign.
The Car Tax has also highlighted the role of the Colorado Supreme Court’ “Mullarkey Majority” in aiding and abetting increases in taxes and other “fees” thanks to several rulings against the clear letter of the Colorado Constitution (particularly Article X, Section 20 – the Taxpayer’s Bill of Rights) in recent years. The political careers of four of the state Supreme Court justices who ruled to enable this tax increase (among others, including the “Mill Levy Tax Freeze” property tax increase) may also be coming to an end, as they come up for re-election (phrased as a question on the ballot: “Should Justice [name] be retained in office?” with the option to vote yes or “NO”) this November.
So why is the Car Tax (er, “vehicle registration fee”) increase so deeply (and deservedly) unpopular?
One reason is the deeply regressive nature of the tax (er, “fee”) increase – which hurts most those least able to afford it (especially those with lower or fixed incomes, such as blue-collar workers, students, and retired or unemployed individuals). Since newly increased tax (er, package of “fees” – which will go up not just once, but each year through 2012) is now based on vehicle weight, the increase may not seem like much to the latte-sipping Prius-driving set, but makes up a significant portion of the total vehicle registration bill for anyone driving an older, heavier (and incidentally, safer) vehicle.
SB09-108 Registration fee increase total
| Vehicles/Trailer | FY09-10 | FY10-11 | FY11-12+ |
| 2,000 lbs. & under | $22.50 | $25.75 | $29 |
| 2,001-5,000 lbs. | $32 | $36.50 | $41 |
| 5,001-10,000 lbs. | $39.50 | $45.25 | $51 |
| 10,001-16,000 lbs | $51.50 | $58.75 | $66 |
| 16,001 lbs & over | $55 | $63 | $71 |
Actually, it’s even worse than you think. The FASTER bill (the Colorado Car Tax) actually consists of TWO new “fees”: a “road safety” surcharge fee, and a “Bridge Fund” fee (that will increase in each of the next two years). The new law also imposes a new “vehicle rental fee” of $2/day – with an exemption for politically-correct “vehicle sharing” arrangements, such as instituted in Boulder and other trendy spots. The two new “fees” – and the additional bureaucracy created for each – have been ignored in most of the reporting about the impact of the Car Tax increase on most citizens.
|
“Road Safety” Surcharge Fee (incl. trailers & other “nonmotorized” vehicles) |
“Bridge Fund” Fee Rate Schedule (50% 1st year; 75% 2nd year; 100% 3rd year +) |
| $16 Vehicles <=2000 lbs (incl. motorcycles) | $13 Vehicles <=2000 lbs (incl. motorcycles) |
| $23 Vehicles 2000 – 5000 lbs | $18 Vehicles 2000 – 5000 lbs |
| $28 Vehicles 5000 – 10000 lbs | $23 Vehicles 5000 – 10000 lbs |
| $37 Vehicles 10000 – 16000 lbs | $29 Vehicles 10000 – 16000 lbs |
| $39 Vehicles 16000+ lbs | $32 Vehicles 16000+ lbs |
And of course there are the “Late Fees” -
“A late registration penalty of $25 for each month or portion of a month that a vehicle is not registered after the one month grace period, not to exceed $100, will be charged beginning June 1, 2009. Expired temporary permit registrations are also included in the $25 penalty. There is no grace period for permits.”
Late fees are now mandatory – the bill removed existing language allowing clerks to exercise discretion:
The department or the authorized agent registering the vehicle may waive the late fee.
Adding insult to injury, the Car Tax bill also creates entirely new bureaucracies, complete with new staff: the “Bridge Enterprise” and the “Transportation Enterprise” – both of which “operate as a government-owned business” within the Department of Transportation. These “government-owned businesses” not only have “exclusive authority to budget and approve the expenditure of moneys” collected by the Car Tax (er, “fees”), but also have the authority to issue/re-issue bonds and contract for loans or grants. The “enterprises” were also added as entities authorized to use eminent domain to seize private property.
Yet despite all of these revenue-generating and spending powers, the bill’s language explicitly states that both “enterprises” – “shall not be subject to any provisions of Section 20 of Article X of the state Constitution” (i.e. TABOR, the Taxpayer’s Bill of Rights). They are not constrained, or accountable.
But all of this is necessary “to preserve our crumbling transportation infrastructure,” right? That was the justification for passing the bill – along with claims that any and all “fees” collected “shall be used exclusively for the construction, maintenance, and supervision of the public highways of the state.” Says so right in the legislative language (43-4-810), so it must be true, correct?
Not so much. The dirty little secret of the FASTER bill is that many of the taxes (er, “fees”) collected don’t go towards the construction or maintenance of roads or bridges at all, but for “multi-modal and demand-side transportation solutions” – such as the desire of certain state Senators for streetcars in Denver – justified by other language in a following section (43-4-812):
43-4-812. Use of user fees for transit – legislative declaration.
(2) THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT THE FUNDING OF TRANSIT-RELATED PROJECTS AUTHORIZED BY SUBSECTION (1) OF THIS SECTION CONSTITUTES MAINTENANCE AND SUPERVISION OF STATE HIGHWAYS BECAUSE IT WILL HELP TO REDUCE TRAFFIC ON STATE HIGHWAYS AND THEREBY REDUCE WEAR AND TEAR ON STATE HIGHWAYS AND BRIDGES AND INCREASE THEIR RELIABILITY, SAFETY, AND EXPECTED USEFUL LIFE.
In fact, the bill MANDATES state spending of $10 Million per year on “transit-related projects.”
It’s an outrageous semantic shell game – and a blatant violation of your constitutional rights.
To sum up: the “FASTER” car tax increase raised vehicle registration fees by $22.50-55 per vehicle, including a “road safety surcharge fee” of $16-$39 per vehicle, PLUS a “bridge fund fee” of $13-$32 per vehicle (halved the first year – so it’s $6.50-$16 this year) in the FIRST YEAR ALONE (with two more years of tax – er, “fee” – increases to come). Plus mandatory “late fees” of $25/month (capped at $100) – for all “vehicles” (including trailers barely even worth that much).
All while creating two new state bureaucracies with power to spend, borrow, & seize private property unconstrained by the Taxpayer’s Bill of Rights and not accountable to the people.
Oh, and increasing mandatory spending by over $10 Million per year on purposes other than roads, bridges, or other transportation infrastructure used by those paying the “fees.”
If anything, the angry crowds at Motor Vehicle offices last summer may have been a MILD reaction, although the anger was misdirected at the hapless county clerks.
Some of the politicians who did this to you – including Governor Ritter and Senate sponsor Dan Gibbs – have quit, rather than face the voters. House sponsor Joe Rice remains, but is facing a tough challenge from Kathleen Conti in his GOP-leaning district. But most importantly, you CAN vote against the four Colorado Supreme Court justices (Mullarkey, Bender, Martinez, and Rice) who enabled this type of sham legislation in the first place with their Nov. 2008 ruling to allow “fees” to act like taxes, in violation of your constitutional rights to have any say in the matter. Clear The Bench, Colorado!
Fight back against this assault on your rights – and your wallet. Exercise your right to vote “NO” this November on the four ‘unjust justices’ of the Colorado Supreme Court’s “Mullarkey Majority”- (Justices Michael Bender, Alex Martinez, Nancy Rice, & Chief Justice Mary Mullarkey) who need YOUR approval to continue taking away your constitutional rights: your right to vote on tax increases, your right to defend your home and business from seizure by governments abusing eminent domain, and your right to enjoy the benefits of the rule of law, instead of suffering under rule by activist, agenda-driven “justices.” Support Clear The Bench Colorado with your comments (Sound Off!), your contributions, and “NO” vote on retaining these unjust justices on the bench for another 10 years!