City of Boulder 201 -- City Retention of Property Tax Funds

This is a “de-Brucing” measure to allow the city to retain excess property tax funds up to .5 mills per year and to allow any taxes collected above that amount to be credited to a property owner’s subsequent year’s taxes. (Douglas Bruce is the author of TABOR [Article X, Section 20 of the CO Constitution]. TABOR requires governments with revenues over a certain amount to return the excess revenue to the taxpayers unless the voters approve government retention of those revenues. Voters in Boulder have already permitted the city to retain excess revenue from the sales and use tax. If this measure passes, the city will be completely “de-Bruced.”)

Recommendation: for
I am generally in favor of de-Brucing. This year Boulder residential property owners received a 2.78 mill-credit on their tax bill. If this measure passes, in six years this credit would no longer appear on property tax bills. Although this measure would allow the city to retain more property taxes, it does not allow the city to raise the mill levy to collect more property taxes. If the city wanted to do that, it would have to get voter approval.

BALLOT ISSUE NO. 201 (Approved Ballot Language)

CITY RETENTION OF PROPERTY TAX FUNDS

Without raising taxes, and in order to pay for necessary city purposes such as fire apparatus, information technologies, energy costs, facility maintenance and city services, shall the city of Boulder, pursuant to Ordinance No. 7608, be allowed to retain and spend property tax funds collected in tax collection years 2009 and beyond, and retain and spend any earnings therefrom, without limitation or condition, and without limiting the collection or spending of any other revenues or funds by the city of Boulder, under Article X, Section 20 of the Colorado constitution or any other law?

And in connection therewith,

(1) Shall any increase in retained taxes starting in tax collection year 2009 that is authorized by this measure be limited to .5 mills per year, and (2) shall any tax monies that are collected above those that the city may retain be credited to property owners as an offset against the subsequent year’s taxes?

For the Measure ____ Against the Measure ____