Colorado Union of Taxpayers Foundation v. City of Aspen

Citations

• 2018 CO 36
• 418 P.3d 506

Syllabus

The Supreme Court considered whether a $0.20 charge on paper bags is a tax subject to the Taxpayer's Bill of Rights (TABOR). The Court held that if the primary purpose of a charge is to raise revenue for the general expenses of government, the charge is a tax. Conversely, the Court concluded that a charge is not a tax if the primary purpose of a charge is to defray the reasonable direct and indirect costs of providing a service or regulating an activity, because such a charge does not raise revenue for the general expense of government. After analyzing the charge in this case, the Court held that this charge is not a tax. Aspen imposed this charge as part of a regulatory program aimed at waste management, and the $0.20 charge for the right to use a paper bag bears a reasonable relationship to Aspen's cost of permitting that use. Because this charge is a not a tax, it is exempt from TABOR's requirements. The Court affirmed the Court of Appeals' judgment.