RTD directors will ask voters for financial help through a ballot measure Nov. 5 that would allow the agency to keep the tax revenue it collects instead of providing refunds required under Colorado’s Taxpayer Bill of Rights.
A ballot measure unanimously approved by the directors last week would continue RTD’s current exemption from TABOR requirements permanently. That exemption otherwise would expire in November. More than $600 million in tax revenues that RTD has collected would be subject to TABOR requirements in 2025, according to Erik Davidson, who chairs the board of directors.
The ballot measure voters will face distinguishes between imposing a new tax and being allowed to keep tax revenues RTD already collects through existing taxes. During the public comment period during RTD directors’ meeting last week, former board member Natalie Menten challenged that distinction. Letting RTD keep unspent tax revenues instead of refunding them as the TABOR law requires “is a tax increase,” Menten argued.
RTD board members commissioned a political consultant to conduct a poll to test the wording — determining that 68% of voters in the Colorado Front Range areas served by RTD transit would approve it.
“Asking the voters to permit RTD to retain the revenues it collects from sales and use tax is important to ensure RTD can sustainably operate and maintain the transit system the voters invested in,” Davidson told The Denver Post.
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A coalition of pro-transit advocacy groups and the caucus of mayors from 38 Colorado cities have backed the campaign. The groups include the Denver Streets Partnership, GreenLatinos, AARP Colorado, and the Southwest Energy Efficiency Project.
If voters do not approve the measure, RTD would no longer keep revenues of around $100 million to $200 million a year — which likely would compel cutting about 20% of bus and train service within two years, Greater Denver Transit co-founder Richard Bamber said.
“There are many valid comments out there regarding the frequency and reliability of RTD services. Not approving the continuing TABOR cap exemption would only make the services issues worse, not better,” Bamber said. “While we absolutely need to keep the pressure on RTD’s management to perform, we need to keep investing in public transit if we are to provide a transportation system that works for all and achieves our goals relating to safety, congestion, and reduction of air emissions.”
Colorado voters in 1992 approved the TABOR as an amendment of the state’s constitution. It requires voter approval for tax hikes and limits the amount of revenue government agencies can keep. In 1995, voters granted RTD an exemption that lasted through 2005. In 1999, voters granted an exemption through November 2024 to help RTD pay off bond debts incurred to finance the construction of RTD light-rail expansion.
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