In a major victory for taxpayers, the Colorado Supreme Court declined to hear the government’s appeal from a unanimous panel of the Colorado Court of Appeals that held that a doubling of the property taxes in a few Northern Colorado counties violated the Colorado Taxpayer Bill of Rights (“TABOR”).
We represent James Aranci and his neighbors, who were shocked to learn in 2020 that their property taxes to the local water district doubled from 2019 to 2020 (and the years thereafter). TABOR requires a vote of the people on any proposed tax increase or new debt taken on by government entities, including water districts. But there was no vote from Aranci or anyone else. So we came to help in their challenge to this unconstitutional tax increase.
As we discussed in our review of the Court of Appeals decision, the intermediate court held for the taxpayers and read the law the same way as our Taxpayer Defense Center. The Court held that Huber v. Colorado Mining Association, which was about a ministerial tax adjustment based on inflation, did not apply here where the Water District had many options for balancing its budget. The Court rejected the Water District’s theory that a 1996 ballot measure waived any right to vote on future tax increases because the 1996 ballot measure here expressly stated “that no local tax rate or property mill levy shall be increased at any time without the prior approval of the voters of the Lower South Platte Water Conservancy District.” And, finally, the Court rejected the Water District’s assertion that the sky will fall if it can’t avoid a TABOR vote and double the rates overnight. TABOR simply requires the government to ask permission if it wants more tax money.
The Water District sought review by the Colorado Supreme Court, and the case was briefed over the spring and summer. On September 30, 2024, the state’s highest court declined to hear the Water District’s appeal. The unanimous victory therefore stands with a clear rule that, if government officials want more tax money, they must put it to a vote of the people.
As for next steps in the case, the unanimous panel of judges reversed the holdings of the District Court and remanded to the District Court for further proceedings on (1) the question of class certification so that all property owners can get their money refunded and (2) attorneys’ fees. This is expected and routine to have the trial court handle such matters.
The case is Lower South Platte Water Conservancy District v. Aranci (2024 CO 295).