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Senate Finance adopts technical fixes and sends SB 42 (TABOR reclassification) to Appropriations, 6–3
Summary
Senate Finance advanced SB 42, which reclassifies certain revenue streams (collections for other governments, damage awards, aviation fuel taxes) for TABOR accounting; committee adopted two technical amendments and voted 6–3 to send the bill to Appropriations after a divided debate.
Senate Finance on Monday considered Senate Bill 42, a measure that clarifies how the state counts certain revenue streams under the Taxpayer Bill of Rights (TABOR).
Sponsors said the bill does not change tax rates, fees, or how money is spent; rather, it defines categories such as "collections for another government" and "damage awards" so that the state’s TABOR accounting more accurately reflects funds the state holds temporarily or revenue streams that are legally exempt. Senator Weisman, a sponsor, told the committee the measure aims to apply ordinary meanings to constitutional terms and correct decades of inconsistent application.
Opponents and public witnesses urged the committee to reject the measure. John Brockmeier, who helped author TABOR, testified that the bill "weakens" the taxpayer protections and warned it is broadly written in ways that could be used to evade voter approval of new revenue. Other opponents argued the reclassifications could reduce TABOR refunds and create incentives for future enforcement or reallocation of funds.
Supporters, including the Bell Policy Center and the Colorado Fiscal Institute, said the amendment clarifies vague constitutional language and helps the state budget more accurately. Legislative fiscal staff told the committee the reclassification would not affect refunds in the current year but would reduce TABOR refunds by an estimated $30.9 million the next fiscal year in the baseline forecast; staff also said projected tax-credit triggers could alter longer-term numbers in later forecasts.
Two amendments were considered. L001 expanded the bill to include sales and use taxes on aviation fuel in addition to excise taxes; L002 made conforming statutory and drafting corrections. The committee adopted L001 on a recorded roll-call vote and adopted L002 by unanimous voice vote on the floor. Vice Chair Marchman then moved to send SB 42, as amended, to the Appropriations Committee with a favorable recommendation; the committee took a roll call and advanced the bill on a 6–3 vote.
The sponsors and staff emphasized that SB 42 is intended to be an accounting and definitional fix within existing constitutional and statutory frameworks. Opponents said the change is a substantive erosion of TABOR and urged voters’ oversight for changes that reduce refunds or reclassify revenue.
The committee forwarded the amended bill to Appropriations and adjourned.
