If you watch the news, chances are you’ve heard about the recent spending and tax bills making their way through the U.S. House of Representatives or the Senate. These bills could have a direct impact on your bottom line, so they garner considerable attention.

But are you keeping track of the laws Colorado’s General Assembly is passing? If not, you might want to start.

Indeed, during the 2021 legislative session, Colorado legislators passed $1.8 billion in new taxes and fees. And that’s just the tip of the iceberg. As a result of tax bills and laws passed since 2019, direct costs from taxes and fees will exceed $2.1 billion by 2023 — taxes and fees that you’re on the hook to pay.

Getting Around TABOR

Thanks to Colorado’s Taxpayer’s Bill of Rights, or TABOR for short, Colorado voters have the power to approve or reject new tax increases. And, in the past, this prevented Colorado lawmakers from passing most tax hikes (a few “sin tax” increases — cannabis, gambling and nicotine — were approved by voters). As a result, TABOR has stymied liberals and progressives when it comes to passing laws to fund their projects.

Consequently, these same Colorado lawmakers decided to take a new approach to fund their vital projects. Namely, increasing fees, which is something that doesn’t require the same type of direct voter approval as tax increases.

It All Adds Up in Tax Bills

When it comes to taxes, there are a few big ones that most consider when looking at their overall tax burden. For example, property tax, state income tax, federal income tax and social security are all direct taxes readily recognizable to Coloradoans. However, there are other often overlooked or indirect taxes and fees that have a marked impact.

For example, car registration, fees you pay for using a cell phone, passed-on business costs, etc., all adds up. And these are going up significantly. Here are just a few reasons why.

• On June 23, 2021, lawmakers passed, and Gov. Polis signed HB21-1311. This ends and limits existing tax deductions and expands the Child Tax Credit and Earned Income Tax Credit. This effectively raises taxes on the wealthy and businesses and lowers taxes for lower-income families.

• SB21-260 became a signed act on June 17, 2021. This increases the fees for vehicle registration, retail delivery and ridesharing (think, Uber) and imposes road usage fees for diesel and gasoline vehicle purchases. While we don’t have an exact amount as of this writing, the increase in costs to Coloradoans is projected to be “considerable,” according to the Common Sense Institute.  

• Common Sense Institute reports that Colorado legislators approved numerous compulsory programs — like a new suicide prevention hotline — that’ll be funded by fees paid by cellular service customers.

Unfortunately, the above are just a small sampling of the new fees and taxes Coloradoans must pay. For a complete list of new fees and taxes, click here. Further, these new fees and taxes don’t include laws like Proposition 118: Paid Family and Medical Leave Insurance Program. Prop 118 was approved in 2020 but doesn’t go into effect until 2023.

What About Indirect Fees?

Even more concerning is that the above only includes direct fees, which are fees like an increase in car registrations or fees paid to use your cell phone. But regulations result in indirect fees, money you pay because the cost of doing business increases for a company or because you pay more for the product. These indirect fees are harder to calculate.

The Common Sense Institute reports there are several new laws that’ll increase indirect fees. These include, but aren’t limited to:

• HB21-1266 — fees on greenhouse gas emissions for utilities
• HB21-1286 — requires large building owners to meet various environmental performance standards
• SB21-087 — repeals some agricultural labor-law exemptions, increasing labor costs

All in all, new fees and taxes will cost Coloradoans and Colorado businesses $2.1 billion in direct fees by 2023. When you factor in indirect fees, the cost to Coloradoans increases considerably.

Going Forward

It’s important to monitor national bills that’ll impact your paycheck. But, local laws affect your income just as much. Colorado’s income tax rate for fiscal year 2020 was 4.55 percent. But if you were to add up all the new fees, and pay them using income tax, the income tax rate in Colorado would be closer to 16.08 percent, according to the Common Sense Institute. Unfortunately, no matter what you make you can expect to see an increase in your fees.

We at The Maverick Observer are dedicated to holding our elected officials accountable. We will continue to shed light on the bills working their way through the assembly, as well as the laws they pass.

More importantly, you have a voice and the ability to make a difference if you don’t like what’s happening in Colorado. Colorado’s General Assembly is passing laws that increase fees and taxes that you’ll have to pay for, but these legislators work for We the People. To contact your legislators and let them know what you think about these new fees and taxes, click here.

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The Maverick Observer, or “The Moe” as we affectionately call it, is an online free-thinking publication interested in the happenings in our town. We launched in February 2020 to hold our politicians and businesses accountable. We hope to educate, inform, entertain, and infuse you with a sense of community.

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