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<br />'1' <br /> <br />~ <br /> <br />The constitutional impairment principle does not apply to annual appropriation <br />leases. Those leases are intended to be paid from available governmental revenue which may be e <br />expected to fluctuate over time or due to the enactment of new laws. Accordingly, if the <br />Amendment passes, annual appropriation leases may be more difficult to use as a fmancing tool <br />because investors may perceive that passage of the Amendment may increase the likelihood that the <br />government may decide to terminate the lease. <br /> <br />It also is possible that some governments will experience a rating downgrade if <br />revenue losses are substantial as a result of passage of the Amendment. The credit impact of the <br />Amendment will most likely fall on small taxing districts which send out small individual tax bills. <br />These may include small fire protection districts, library districts, ambulance districts, cemetery <br />districts and certain special districts. <br /> <br />Question 15. Will a "debrucing" election question already passed in a local government allow <br />the local government to avoid the tax cuts required by the Amendment? <br /> <br />Many local governments have received voter approval to collect and spend all or <br />some portion of their revenue notwithstanding the limits of TABOR. Courts have interpreted <br />TABOR 10 authorize this type of voter approval. While the Amendment adds a new paragraph to <br />TABOR, there is nothing in TABOR or the Amendment which allows local voters to directly waive <br />the impact of the Amendment. <br /> <br />Previously approved debrucing and tax elections will need to be analyzed to a <br />determine whether they are sufficient to override the effects of the Amendment's tax cuts. . <br /> <br />Question 16. If existing "debrucing" questions are inadequate to negate the effect lIf the <br />Amendment, is it possible for a local government to receive voter approval in the future to <br />counter these effects? <br /> <br />The Amendment does not expressly allow its provisions to be negated through an <br />election. TABOR, however, does allow voters to approve a tax increase. . It is possible, therefore, <br />for a government to submit a question to its voters seeking approval for a tax increase to offset some <br />or all or the revenue loss from the passage of the Amendment. For example, a fire district might <br />consider the following question if the Amendment passes: <br /> <br />SHALL ROCKY MOUNTAIN HIGH FIRE DISTRICT TAXES BE <br />INCREASED $500,000 ANNUALLY BY A MILL LEVY OF NOT <br />TO EXCEED 4 MILLS PROVIDED THAT SUCH MILL LEVY <br />MAY BE ADJUSTED TO CONTINUE TO GENERATE <br />$500,000 IN REVENUE TO THE DISTRICT IN EACH YEAR <br />AFTER TAKING INTO ACCOUNT THE TAX CUTS <br />SPECIFIED IN SECTION 8(D) OF ARTICLE X, SECTION 20 <br />OF THE COLORADO CONSTITUTION; AND SHALL THE <br />REVENUE FROM SUCH TAXES AND ANY EARNINGS FROM <br />THE INVESTMENT OF SUCH REVENUE BE COLLECTED AND <br /> <br />8 <br /> <br />e <br />