Veto Request HB22-1024

Concern

CML requests Governor Polis' veto of this bill to avoid forcing local taxpayers to defend their home rule rights yet again and to permit this localized problem, if it exists at all, to be appropriately addressed in city council chambers or at the local ballot box.

HB22-1024 violates Article XX, Section 6 of the Colorado Constitution
HB22-1024 is a blatantly unconstitutional attempt to exert state control over the taxing authority of home rule jurisdictions. The bill directly infringes upon the home rule powers of municipalities granted by Article XX, Section 6 of the Colorado Constitution and contravenes explicit precedent of the Colorado Supreme Court. Unless vetoed, HB22-1024 will result in lengthy, costly litigation for municipalities. Home rule municipalities should not have to incur those expenses or be forced to change their tax codes to prevent such an egregious overreach.

HB22-1024 targets only a handful of municipalities and addresses a matter that is best left to local governments and their voters
HB22-1024 suggests that the State’s authority to interfere with home rule taxing authority arises from the State’s involvement in public education under Article IX, Section 2 of the Colorado Constitution or a presumed extraterritorial impact in school districts that serve multiple jurisdictions. Both arguments are blatant and transparent efforts to undermine the express provisions and long-standing interpretations regarding taxing authority under Article XX, Section 6 and should be disregarded. See Winslow Const. Co., 960 P.2d at 695 (noting that the Supreme Court is not bound by a legislative declaration of statewide concern, including a concern related to uniformity in local taxation).

HB22-1024 sets a dangerous precedent that would endanger home rule taxing authority
If enacted, HB22-1024 could open the door to an onslaught of tax exemption bills to benefit special interests that have long sought to impose any of over 80 state tax exemptions on home rule tax codes. Title 39 of the Colorado Revised Statutes is riddled with sales and use tax exemptions and six sales and use tax exemption bills have been introduced this year. Any number of interest groups could concoct a clever statement of statewide importance or find a tangential constitutional reference to support such a statement. These efforts would not only attack home rule authority but the very existence of home rule municipalities and their ability to provide services to their residents. The Colorado Constitution requires more than this.