TABOR author sues Colorado Springs, seeks removal of road tax extension question on November ballot
Douglas Bruce, the former Colorado state legislator who authored the state's Taxpayer Bill of Rights amendment, is suing the city of Colorado Springs in a bid to remove a question from the November ballot that would authorize the 10-year extension of a dedicated sales tax for road maintenance.
Bruce filed the three-page lawsuit against the city Monday in El Paso County District Court, alleging a dozen TABOR requirement violations in the approved ballot language for Colorado Springs' 2C road tax measure.
With 36 days left ahead of the Nov. 5 election, Bruce seeks a declaratory judgment that the city's ballot issue 2C is "void on its face," the lawsuit states.
In mid-August the City Council voted to send the issue to the Nov. 5 ballot, asking to extend the current 0.57% temporary sales and use tax for the next 10 years from 2026 through the end of 2035. The tax equates to 5.7 cents on every $10 purchase. The current tax will sunset Dec. 31, 2025.
Though the ballot language states the city will not impose any new tax or increase the rate of any existing tax, Bruce alleges in his lawsuit the ballot issue is a tax increase measure because "it would increase city sales tax revenue from 2026 for 10 more years."
He estimates the sales tax revenue increase is more than $20 million in 2026, and will be more each subsequent year through 2035, plus inflation. The tax revenue increase through 2035 would exceed $250 million, he alleges in the lawsuit.
The ballot language "egregiously" violates TABOR requirements in two ways, Bruce told reporters Monday afternoon outside the City Administration Building downtown.
It does not specify, in dollars, the amount by which the city expects taxes to be increased each year if voters approve the sales tax extension.
"That's crazy and a total violation of TABOR. ... They're insulting the intelligence of voters by saying it's a 5.7-cent tax," Bruce said, calling the city's actions "tax theft."
"If (voters) put this through, they're basically saying (the city) can have an unlimited spending amount," he added.
The ballot language also does not specify the estimated or actual total, in dollars, of 2C-related fiscal year spending for 2024 and each of the past four years, or the overall percentage and dollar change, Bruce said.
The city's 2024 budget states the estimated revenue from the dedicated 0.57% portion of Colorado Springs' sales and use tax is about $74.7 million. That figure includes estimated interest revenue of $860,000.
The budget estimates 2C expenditures this year will be about $73.7 million. Expenditures were predicted at a lower amount than revenue because prior year revenue had been projected under budget, the document states.
Meeting minutes from the 2C Advisory Committee show the city spent $93.8 million on the 2C program in 2023.
City spokesman Max D'Onofrio said Monday that officials have received a copy of the lawsuit and are still reviewing it.
In an emailed statement, Mayor Yemi Mobolade championed the 2C ballot issue.
"The 2C program has twice been approved by voters and consistently delivered results to improve the conditions of our roads. Without raising taxes, I ask voters to join me in voting yes on 2C to continue the good work we have done over the last nine years," he said.
Voters first approved a 0.62% 2C road tax for five years in 2015, then renewed it in 2019 for another five years at the lower rate of 0.57%.
El Paso County is coordinating this year's Nov. 5 election in Colorado Springs.
Bruce said he would have liked for the 2C ballot issue language to be removed from ballots before they go out, but that is not possible.
County Clerk and Recorder Steve Schleiker said in an email Monday that ballots have already been printed for the coordinated election and his office will begin mailing those ballots to registered voters Oct. 11.
Schleiker's office already mailed military and overseas ballots on Sept. 20, and on Monday began issuing mail ballots to any eligible voter who requested one in person.
If the court rules in Bruce's favor and orders the city to remove its 2C question from the ballot before Nov. 5, "it is highly unlikely that new ballots would be printed, given the timeline and logistical challenges involved," Schleiker said.
His office would instead follow directives from the court, which may include notifying voters that the 2C ballot issue would no longer be valid for voting. Votes cast for the 2C question would be null and void, subject to the court's decision, and the clerk would post that order in all its voter service and polling centers, Schleiker said.
"If such a scenario arises, we would coordinate closely with the court, county attorney, and the secretary of state's attorneys to ensure proper communication is issued to voters. This could involve notices at polling locations, online notifications, and, potentially, direct communication to those who have already voted by mail," he said.
Bruce also requests the city be ordered to file with the district court for the next 10 years any city-proposed ballot issue that is related to city revenue, and that Bruce be invited to a court hearing to review and speak on such a ballot issue 180 days before the election.
