Case Summary
Issue:
Whether the Colorado General Assembly can circumvent the Taxpayer’s Bill of Rights (TABOR) of the Colorado Constitution by granting a government-owned enterprise the power to assess taxes and incur debt without a vote of the people?
Plaintiff:
TABOR Foundation, a Colorado nonprofit, public-interest foundation dedicated to protecting and enforcing TABOR, which requires a vote of the people before Colorado may create new debt, levy new taxes, increase tax rates, or institute tax policy changes directly causing a net tax revenue gain
Defendant:
Colorado Bridge Enterprise; Colorado Transportation Commission; Trey Rogers, Gary M. Reiff, Heather Barry, Kathy Gilliland, Kathy Connell, Douglas Aden, Steve Parker, Les Gruen, Gilbert Ortiz, and Edward J. Peterson, all in their official capacities as members of the Colorado Transportation Commission
Join the Fight
Since 1977, MSLF has fought to protect private property rights, individual liberties, and economic freedom. MSLF is a nonprofit public interest legal foundation. We represent clients pro bono and receive no government funding. Make your 100% tax deductible contribution today and join the fight.
Case History
In 2009, the Colorado General Assembly passed Senate Bill 09-108, commonly known as Funding Advancements for Surface Transportation and Economic Recovery Act (FASTER), which provides for creation of the Colorado Bridge Enterprise, a government-owned business chartered to repair and to maintain bridges in Colorado. Previously, that work was performed by the Colorado Department of Transportation (CDOT), which is overseen by an 11-member board; that same board now also oversees the Bridge Enterprise. In addition, CDOT’s Executive Director is the Director of the Bridge Enterprise and CDOT’s CFO is CFO of the Bridge Enterprise.
FASTER imposes a “bridge safety surcharge,” based on weight, which is collected whenever a vehicle is registered anywhere in Colorado. Almost half of Colorado’s 64 counties will receive no direct benefit from the Bridge Enterprise; nonetheless, the residents of these 29 counties must pay the same bridge tax as residents of the counties allegedly benefitted by the tax.
Government-owned enterprises, which are exempt from TABOR if 90 percent self-supporting and operating independently from state government, cannot levy taxes; they may only assess fees for their services.
Colorado’s Independence Institute previously exposed FASTER’s constitutional deficiencies in a pair of studies published in May 2011: “How Colorado Has Raised $300 Million In Debt Without Asking Its Citizens: The Colorado Bridge Enterprise,” by Richard Sokol; and “Colorado Bridge Enterprise: A Case Study in Contravening Colorado’s Constitution,” by Tom Ryan.