Home › News › Education
State education department seeks tax ruling
Published December 3, 2008 at 10:32 a.m.
Updated December 3, 2008 at 11:53 p.m.
The Department of Education has asked the Colorado Supreme Court to decide by Friday whether it intends to throw out a 2007 property-tax measure so that school districts can set their mill levies for next year.
At issue is a 2007 school finance law, signed by Gov. Bill Ritter, that freezes property tax rates in most Colorado school districts. The frozen rate means higher tax bills for owners of property that has risen in value.
A group of Mesa County officials and residents sued the state, arguing that the freeze is an unconstitutional tax hike, and a district court agreed earlier this year. Ritter and the Education Department appealed to the Supreme Court, asking it to make a decision by Dec. 1.
That deadline passed without word from the high court, however, and the Education Department filed its motion Monday seeking a ruling.
School districts' tax rates are due to the department by Dec. 15, and most districts are meeting next week to determine them. Without clarity from the court about the freeze, local officials will not know whether to reduce the rates as required by the constitution or keep them frozen as required by the 2007 law.
"It's a bridge to uncertainty. That's exactly why the motion was filed," state Education Department spokesman Mark Stevens said Wednesday. "We're hoping the court hears the need and that we don't have to assume."
The delayed decision also could affect the crafting of the state budget.
The freeze was expected to bring in $118 million in its first year and $131 million this year. If the court throws out the law, the legislature will need to cut some $250 million out of this year's already tight budget to refund the money to taxpayers and would need to trim next year's budget, too.
Rep. Jack Pommer, a Boulder Democrat and vice chairman of the Joint Budget Committee, said members are crafting the state's next fiscal plan expecting the law will be deemed constitutional. The state is sued every year over matters that could affect the budget; setting aside money for each potential suit would distract too much from big-
picture planning, he said.
sealovere@RockyMountainNews.com or 303-954-5438
Back to Top