OUR VIEW: Ritter makes use of ol' bait and switch

The Taxpayer’s Bill of Rights clearly says that voters have to approve any new tax in Colorado. Many jurisdictions, including the state and Colorado Springs, have danced around this requirement by instituting fees to cover costs that should rightly be funded with taxes. This allows those governments to get what they want — and in all fairness sometimes what they need to serve the public — without the bother of asking permission. The Colorado Supreme Court has been complicit in allowing this, ruling many times that these fees aren’t really stealth taxes. That fact has unfortunately emboldened new abuses of fees, and the latest example is Gov. Bill Ritter’s August raid of the state’s fee-funded tire cleanup fund to help balance the budget.

Several readers have sent in letters to the editor on this issue, basically stating Ritter is employing the old bait-and-switch. We have to agree.

Any time a fee is imposed by government, the legislation setting up the fee provides for how the money is to be spent. A fee should address a specific issue to be addressed with that revenue. The tire waste fund comes from a $1.50 fee the state charges when you buy a new tire and leave the old one at the dealer. It is supposed to be used to subsidize tire recycling efforts in the state. The subsidy is needed because, according to a recent Denver Post report, the demand for recycled tires isn’t high enough to make recycling profitable, and Colorado has the largest stockpile of old tires in the nation. Ritter’s actions exacerbate the problem. Worse, though, his raid on the waste tire fund created what is essentially a new tax on tires.

The Colorado high court disagrees, saying, in essence, that as long as revenue from a fee goes into the fund for which it was intended, it’s still a fee, regardless of what it’s spent on. Additionally, the court says that because the revenue is already in the state coffers, it’s not new revenue if it is moved to the General Fund. Using the court’s rationale, the Legislature could charge a fee to, say, offset damage to state roads from large pickup trucks and SUVs. It could then raid that fund to pay for capital improvements or maintenance to public school buildings.

Any way you slice it, that’s underhanded and a breach of the public trust.