Colorado Senate Debates $72M Annual Corporate Tax Increase Amid TABOR Compliance Concerns

A heated debate erupted during the Colorado Senate's extraordinary session as lawmakers grappled with a proposed tax increase of $72 million annually, aimed at modifying corporate income taxation related to foreign jurisdictions. The discussion centered around the implications of this tax change, with several senators emphasizing the need for voter approval in accordance with the Taxpayer's Bill of Rights (TABOR).

Senator from Brighton passionately argued against the tax increase, asserting that it contradicts the spirit of TABOR, which mandates that any tax hike must be put to a public vote. "We shouldn't have to put on the ballot, shall we abide by the Constitution?" he stated, highlighting the importance of adhering to constitutional guidelines. He pointed out that while the federal government recently provided significant tax relief to constituents, the proposed state measure would do the opposite by increasing taxes without consulting voters.

In contrast, other senators defended the proposal, arguing that it was not a tax increase but rather a necessary adjustment to address budget shortfalls. Senator Kirk Meyer clarified that the bill was intended to pause a refund in the Family Affordability Tax Credit, not to raise taxes. He emphasized the need for a long-term strategy to ensure essential services for vulnerable populations, warning that failing to address the budget gap could lead to cuts in healthcare and education.

The debate also touched on the broader context of state spending, with some lawmakers criticizing what they described as excessive government expenditure. Senator Bazely called for transparency and accountability, urging that any increase in state revenue should be presented to the electorate for approval.

As the session progressed, the tension between fiscal responsibility and the need for public input remained palpable. The outcome of this discussion could significantly impact Colorado's tax policy and budgetary decisions moving forward, with senators urging their colleagues to respect the will of the voters in any tax-related matters. The session underscored the ongoing struggle to balance state revenue needs with constitutional obligations and public sentiment.