Metro Denver voters in the Nov. 5 election will decide whether to let the Regional Transportation District keep tax money that otherwise, under the Taxpayer’s Bill of Rights, would need to be returned to taxpayers.
It’s a ballot question that is common for local governments, and RTD has sought similar voter approval in the past.
What would 7A do if passed?
The ballot measure asks voters within the area served by the transit agency’s buses and trains, in all or part of eight counties, whether to permanently exempt RTD from TABOR revenue limits — a so-called “de-Brucing” measure. (Douglas Bruce was the author of the TABOR Amendment, and his name is now associated with opt-out measures.)
RTD’s current exemption for its sales tax revenue expires this year. Voters in 1995 and 1999 granted exemptions for RTD. The ballot measure distinguishes between imposing a new tax to fund transit services and allowing RTD to keep the tax revenues that it already collects through existing taxes, as is the case here.
How much money is involved?
If voters reject 7A, RTD could be required to refund millions of dollars to taxpayers. RTD officials have estimated that $670 million of its annual budget, or about half of revenue, would be subject to TABOR revenue limits if 7A fails — compelling cuts to transit service unless a new tax was imposed.
Agency officials have estimated that if TABOR limits weren’t exempted between 2007 and 2019, they would have had to refund $650 million to taxpayers over that span. They recently estimated that a rejection of 7A would force RTD to return $2.4 million in 2027 and $3.6 million in 2029, based on anticipated tax collections in those years.
What supporters say
Public transit and environmental advocacy groups support 7A. They’re campaigning around the theme that “without raising taxes, we can support the buses and trains that we need more of in the region.” Supporters also argue that the measure will help RTD keep up with maintenance needs on its aging infrastructure.
What opponents say
Opponents argue that keeping revenues that must be refunded to taxpayers under TABOR is akin to a tax. They also say RTD shouldn’t get to keep the extra money now that construction projects it was intended for have been paid off, according to arguments in Denver’s ballot information guide. Opponents argue RTD officials have failed to run a sufficiently reliable or safe system in recent years.
Stay up-to-date with Colorado Politics by signing up for our weekly newsletter, The Spot.
Originally Published:
