Jefferson County's commissioners seek elimination of TABOR refunds — again

For the third time in five years, Jefferson County's elected officials are asking voters to allow the local government to spend all of the revenue that it collects above the Taxpayer's Bill of Rights limit, thereby eliminating refunds to taxpayers.

For fiscal year 2024, that refund amount is estimated to be $54.4 million.

Last year, the county refunded $39.4 million to roughly 210,000 property taxpayers.

The county's voters rejected the idea twice — in 2019 and 2022 — but the county's commissioners this month insisted that, after "engaging" with the public through "both qualitative and quantitative research," voters need to decide the question again.

“It is the spirit of TABOR to bring questions like this to the voters and let them decide,” Commissioner Andy Kerr said in a statement. “TABOR demands that community members engage with their government to address challenges like this.”

“I have great pride in Jefferson County, but we’re falling behind in essential county services, and that’s where we come in as county fiscal stewards,” Commissioner Lesley Dahlkemper said during the meeting that sent the measure to the November ballot.

Under TABOR, local voters may allow their respective government to "debruce" — that is, permit a county, municipality or school district to eliminate the TABOR spending limit, and then to retain and spend all of the revenue it has collected.

Jefferson County is among a few counties that have not "debruced." A majority of Colorado's 64 counties have done so.

Last week, commissioners Kerr, Dahlkemper and Tracy Kraft-Tharp voted to place the debrucing question on the ballot.

If approved, the county would be able to keep and spend all of the revenues it collected in fiscal year 2024 and each year thereafter.

As envisioned, the funds would go toward transportation and infrastructure, such as “building, maintaining, and repairing roads, bridges, potholes, and other infrastructure.” The money would also go toward public safety, including "wildfire and flood mitigation and response, addiction and mental health programs, crime prevention programs and strategies, and other county public safety functions,” the county said.

Critics of TABOR have argued that it imposes an artificial ceiling on government spending and "severely limited Colorado’s ability to spend on public programs in economic downturns."

Supporters said it has kept government spending in check and kept taxes lower than where they would have been without TABOR's limitations.

Jefferson County has argued that the growth allowed under TABOR has failed to keep pace with the demands arising out of the county’s population growth.

And just like last the previous times, commissioners this month contended that the county needs all of the revenue it collects.

“We have mandated services, and then we have those fun things, and I want us to be able to do the fun things, too. I just don’t see how we can do it without the revenue retention,” Kraft-Tharp said.

Mansur Gidfar, a partner at the Bighorn Company, which is advising the county in coming up with a revised spending plan, said 76% of property taxes collected go to other local governments, such as school, fire, and water districts.

Gidfar also pointed to the COVID-19 pandemic as a reason for the funding woes that the county faces.

“Since the county received much less revenue in 2020 due to the economic shutdown during the COVID-19 pandemic, the TABOR formula automatically lowered the County Revenue Limit by $14.5 million — a permanent reduction that continues to impact the county’s budget and finances to this day,” Gidfar said.

The commissioners heard from both advocates and critics during the meeting last week.

“Folks rely on the services that my city provides,” Arvada Mayor Lauren Simpson said. “By debrucing, we can invest these funds in our roads and our shared infrastructure, and we will have a safer community for all.

Others said people have worked hard for their money, and they deserve to get their tax refunds.

“The everyday people I’m around clearly speak that they want their tax refunds,” said Charlie Johnson, who is running for a seat on the county commission.