National Taxpayers Union’s Taxpayer Defense Center (TDC) has filed an Opening Brief in the Colorado Court of Appeals in a lawsuit against the Lower South Platte Water Conservancy District located in Northeastern Colorado. Over the course of one year, property taxes to the Lower South Platte Water Conservancy District doubled despite Colorado’s Taxpayer Bill of Rights (TABOR), which is designed to prevent such unchecked tax increases. TABOR mandates a ratification vote of any proposed tax increase or new debt taken on by government entities–including water districts, but no vote was held before property taxes were doubled. James Aranci, a Lower South Platte Water Conservancy District resident, contacted the TDC in 2020 seeking the rate be reset and a refund of what was illegally collected. However, the District Court's ruling in the case stated that there was no TABOR violation due to an exception in the underlying property tax statute that allows for a range of rates based on the water district's "varying budgetary needs."
“The exception cited by the District Court does not apply here because this is a substantive change to tax rates,” says Senior Attorney Tyler Martinez, TDC’s lead lawyer on this case. “It should be up to a vote to increase these property taxes, otherwise it would effectively make Colorado’s TABOR mean nothing.”
In its brief to the Colorado Court of Appeals, the Taxpayer Defense Center argues that the water district's authority to set budgets, raise rates, and take on debt through bonds is a legislative function. Therefore, the doubling of the mill levy rate by the Water District without voter ratification is a clear violation of TABOR. Without proper ratification, the tax increase imposed by the Water District is illegitimate and must be reversed. TDC remains committed to advocating for the rights of Colorado taxpayers, and will provide updates on the proceedings as they become available.
If you would like to speak with the Taxpayer Defense Center’s Senior Attorney Tyler Martinez about the Lower South Platte Water Conservancy District case, please contact Kevin Glass, NTUF Vice President of Communications, at 703-299-8670 or at kglass@ntu.org.