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House approves bill that reclassifies some fines and sales as TABOR exclusions after heated debate
Summary
Lawmakers passed Senate Bill 173 to clarify what state receipts count toward the Taxpayer Bill of Rights (TABOR) limit, a move supporters said corrects statutory ambiguity and opponents said will reduce taxpayer refunds.
The Colorado House on third reading adopted Senate Bill 173, a measure that clarifies how certain revenue — including some fines, penalties and government merchandise sales — is counted for purposes of the Taxpayer Bill of Rights (TABOR). The final vote was 40 in favor, 24 opposed and 1 excused.
Proponents said the bill updates statutory definitions that were left ambiguous when TABOR was drafted. Representative Zocai (Representative Zocai) told the chamber the legislature has the authority to define terms listed as exclusions in TABOR and said the bill merely “hones in on damage awards and property sales because those terms are not defined.”
Opponents argued the redefinitions carve revenue out of the spending limit and reduce the refunds that TABOR requires the state to return to taxpayers. Representative Weinberg (Assistant Minority Leader Winter) and Representative Bottoms warned the change would shrink future TABOR refunds to the public and create incentives for state revenue collection that evade voter review. Assistant Minority Leader Winter said the bill “guts TABOR protections by reclassifying normal state revenue as exempt.” Representative Mabry, a sponsor, said the statutory clarification is intended to exempt only revenue already listed as exclusions when they properly meet the definitions.
Lawmakers debated several specifics on the floor. Representative Marshall and others said some items listed in the bill appear to be fees intended to change behavior rather than damage awards; Marshall identified the monetary penalty assessed by the Energy and Carbon Management Commission as one example. Representative Bacon, speaking for the majority leadership, said the clarifications would bring about $15 million into the state budget this year and argued the legislature has authority to set definitions to allow funding for programs and services that did not exist in 1992.
Representative Puglisi (Representative Puglisi) summarized the fiscal note for colleagues, citing an estimate the bill would decrease TABOR refunds by roughly $16.9 million in fiscal year 2024–25 and similar amounts in the next two fiscal years based on the forecast used in the fiscal note. Multiple lawmakers said the bill raised constitutional and policy questions about whether such reclassifications should be left to the voters.
The House considered a proposed third-reading amendment (L077) offered by the minority that would have restricted a former governor from being appointed to certain vacancies; the amendment failed on the floor by a 23–39–3 vote. After floor discussion, the House adopted the bill on third reading and final passage by a 40–24–1 vote.
Votes on third reading and final passage were recorded on the House floor. The bill will proceed as required under the legislative process following House adoption.
Ending: Supporters said SB173 clarifies long-unclear statutory language listing TABOR exclusions; opponents said the practical effect is to reduce refunds owed to taxpayers. The fiscal note and a string of floor remarks documented concern about how the changes could shift revenue treatment for fines, penalties and state-run sales and their impact on TABOR refunds.
