Colorado Marijuana TABOR Refund Measure, Proposition BB (2015)

• Text of measure
• Background
• Support
• Opposition
• Media editorials
• Path to the ballot
• Colorado profile

Proposition BB
Type	legislatively referred state statute
Origin	Colorado Legislature & Governor
Topic	Taxes
Status	Approved a

Colorado 2015 ballot
TABOR Refund - Marijuana

All 2015 U.S. measures

The Colorado Marijuana TABOR Refund Measure, Proposition BB, was on the November 3, 2015 ballot in Colorado as a legislatively referred state statute, where it was approved.

A yes vote was a vote to retain $66 million in collected marijuana tax revenue.

A no vote would have required the state to refund $66 million in collected marijuana tax revenue.

After voters approved the measure and the state kept the money, it was to be used for school construction and state programs. If voters had rejected the measure, the money would have been refunded by temporarily reducing the marijuana sales tax, returning funds to marijuana cultivators and the average taxpayer would have received about $8.

Election results

Colorado Proposition BB
Result		Votes	Percentage
a Yes		847380	69.39%
No		373734	30.61%

Election results via: Colorado Secretary of State

Introduction

When voters passed Proposition AA in 2013, the measure included a marijuana tax. The Colorado Taxpayer Bill of Rights (TABOR) required the state to estimate how much revenue it would collect from the marijuana tax and the total revenue. The following table shows how much the state estimated and the actual amounts collected in the 2014-15 fiscal year.

	Estimate	Actual figure	Difference
Total Revenue	$12.08 billion	$12.35 billion	$270 million more than estimate
Marijuana Tax Revenue	$67 million	$66 million	$1 million less than estimate

The total revenue ($12.35 billion) exceeded the state's estimate ($12.08 billion) and TABOR requires the marijuana tax revenue be refunded. Proposition BB asked voters whether the state could keep that revenue ($66 million) or whether the state had to refund it.

The measured required that if state kept the money, it was to be spent in two areas:

• $40 million on school construction
• $12 million on youth programs, marijuana education and prevention programs, law enforcement services, substance abuse programs, poison control services and the local government retail marijuana impact grant program

How the remaining funds were to be used was not specified.

If voters had chosen to have the money refunded, it would have been returned in three ways:

• $25 million to Colorado residents who file a 2015 state income tax return, which averages about $8 per taxpayer
• $24 million to marijuana cultivators
• $17 million through a temporary marijuana sales tax reduction from 10 percent to 0.1 percent effective January 1, 2016

Text of Measure

The ballot text was:

“

May the state retain and spend state revenues that otherwise would be refunded for exceeding an estimate included in the ballot information booklet for Proposition AA and use these revenues to provide forty million dollars for public school building construction and for other needs, such as law enforcement, youth programs, and marijuana education and prevention programs, instead of refunding these revenues to retail marijuana cultivation facilities, retail marijuana purchasers, and other taxpayers?

”

Background

TABOR

See also: Colorado Taxpayer Bill of Rights, Initiative 1 (1992)

In 1992, Colorado became the first state to constitutionalize a Taxpayer Bill of Rights after voters passed Initiative 1. The Colorado TABOR requires voter approval for all new taxes, tax rate increases, extensions of expiring taxes, mill levy increases, valuation for property assessment increases, or tax policy changes resulting in increased tax revenue.

Similar measures appeared on ballots in Maine, Michigan, Missouri, Nebraska and Oregon, but all five were defeated.

Proposition AA

See also: Colorado Proposition AA, Taxes on the Sale of Marijuana (2013)

In November 2013, Colorado voters approved Proposition AA, which imposed two taxes on recreational marijuana: an excise tax and a sales tax. The 15 percent excise tax is charged on the wholesale sale of marijuana, which is when unprocessed marijuana is first sold to a retail marijuana firm, and the 10 percent sales tax is charged on the retail sale of marijuana and marijuana products.

Proposition AA was designed to increase state revenue by about $70 million a year. Specifically, $27.5 million would come from the excise tax and $39.5 million from the sales tax. Because the proposition created new taxes, Colorado residents had to vote on it as required by the TABOR. Revenue collected for state spending overshot the estimate by roughly $66 million.

Amendment 64

See also: Colorado Marijuana Legalization Initiative, Amendment 64 (2012)

Colorado, along with Washington, became the first state to legalize the personal consumption of marijuana in 2012. Voters approved legalization via Amendment 64. The measure required the legislature to enact a 15 percent or less excise tax on the wholesale sale of marijuana by January 1, 2017.

Support

Sen. Pat Steadman (D-31) launched the Vote Yes on BB campaign to support the measure.

Arguments in favor

The Vote Yes on BB website stated:

Sen. Pat Steadman

“

Proposition BB addresses a one-time need to see to it that revenues collected from marijuana taxes fund school construction, law enforcement, substance abuse prevention, and youth services, as voters intended. By retaining these monies, we ensure that these resources directly benefit our communities, as voters intended.

”

Sen. Pat Steadman said in a statement about the proposal:

“

I’m encouraging Colorado voters to say YES to Proposition BB. Should the measure fail the new taxes voters just approved will be refunded to the marijuana industry and taxpayers. I don’t think this is what voters had in mind when they said legalize it and tax it.

”

Gov. John Hickenlooper said at a press conference on September 21, 2015:

“

It should be obvious. If we don’t get this passed, we are going to have a very, very difficult time regulating (marijuana) at all.

”

Sen. Kent Lambert

Sen. Kent Lambert (R-9) said:

“

We have some strong laws in our constitution to protect taxpayers. If Proposition AA had anticipated some of the triggers that happened (over pot tax money) this maybe would not be necessary now. This is a good compromise that has very strong bipartisan support.

”

Kathryn Wells, a pediatrician in Colorado, wrote in an opinion letter to The Denver Post:

“

As a pediatrician who has dedicated my entire professional life caring for children, including an emphasis on substance abuse prevention, treatment, and child mistreatment, I believe it is critical to pass Proposition BB. Without raising taxes, Proposition BB simply asks voters to retain the $66 million in retail marijuana taxes collected by the state in the first year of marijuana sales. If BB passes, $40 million will fund school capital construction. Remaining funds will be invested in education campaigns about the risks of substance use during pregnancy and while breastfeeding, improving law enforcement capacity, and supporting youth mentoring services — all important programs that respond to community needs related to marijuana legalization. If BB fails, most funds will go back to the marijuana industry. I hope you will join me in supporting Proposition BB.

”

Opposition

The NO on Prop BB campaign led the fight against the initiative.

Arguments against

Colorado attorney Rob Corry, chairman of the NO on Prop BB campaign, wrote in an opinion column for the Times-Call:

“

The pro-BB campaign (unsurprisingly made-up of politicians, lobbyists, and privatized government contractors) assumes the same tired message will work again: i.e. this tax is only paid by dirty hippies who consume cannabis, but not by you, dear voter. That may have been a plausible strategy last time, but this time, working people won't buy it. This year's BB election is different from AA's. First, the sole reason that Proposition BB exists at all is that AA misled voters. Whether by incompetence, corruption or both (this is government after all), the state collected too much money. Under Colorado law, politicians cannot keep your excess taxes without your approval. Second, unlike AA, with BB every single Colorado taxpayer (not just cannabis consumers) will receive a tax refund of up to $32, if Proposition BB fails. Yes, you read that right: even if you never bought retail marijuana and never will, you still receive up to $32 yourself, if you vote "no" on Proposition BB. Thirty-two dollars is significant: $32 can buy 10 gallons of milk, the big box of diapers, dozens of eggs, pay a water bill, or put shoes on your children's feet. By contrast, in the government's clutches, $32 might buy a round of margaritas for thirsty bureaucrats at a taxpayer-funded "team-building" conference in Hawaii. Third, Proposition AA was peddled as revenue for public school construction, typically politically-popular (although not a penny went to kids inside classrooms, only to government contractors). But Proposition BB goes to pet projects for politicians' favored special interests, a far less popular cause. A whopping $12 million is already spoken for by a long line of privatized piglets who perennially suckle at the state's teats. More cages. More dumb and insulting state ad campaigns lecturing us "lab rats" too stupid to know better.

”

Justin Haskins, editor of The Heartland Institute, and Michael McGrady, a University of Colorado-Colorado Springs student, wrote in a joint opinion column for The Denver Post:

“

Proposition BB is harmful to the state and taxpayers no matter what voters say. With the success of the recreational marijuana industry will come further, more complex expansion. With expansion will inevitably come more state expenses related to enforcing laws, regulating marijuana sales and distribution practices, and other unforeseen costs. When it becomes necessary to add government services, where will the money come from? Instead of sending more money to public schools or to taxpayers, a far more cautious and well-planned approach would require the state to hold the money in an account that can only be used to improve necessary government services related to this industry. After a set period, if the funds have not been used, they can then be returned to taxpayers, given to schools, or set aside for some other purpose. If Proposition BB passes, the growth of the marijuana industry will only lead to future tax hikes, as government agencies look to expand. Governments, at both the state and federal levels, have a tendency to spend additional revenue without ever planning ahead for inevitable future costs. It makes far more sense to plan for this new industry still in its infancy to have some growing pains in the future. Proposition BB should be tabled and a new proposal ought to be debated on for another year.

”

In a letter to The Daily Sentinel, Colorado resident David F. Zulian wrote:

“

It’s time voters weigh in on Proposition BB. Please read the blue book and pay attention to what is at stake here - $66.1 million. I’m thinking back to when recreational marijuana was being pushed: “You can tax it, and build schools with the funds” was part of the push to legalize it. Of course, for lots of people, anything having to do with school funding, whether it is building schools, or just getting more money for schools districts, is a no-brainer – even legalizing pot. More money does not necessarily equate to brighter students, or higher graduation rates, but hey – it’s “for the children.” TABOR has been Colorado law for many years. We have been asked time and time again to override TABOR – yet the legislature for some unknown reason didn’t see the influx of money from pot legalization as becoming a problem under TABOR. They were salivating over the idea of all those millions coming to Colorado coffers. Now that it has been realized the money is restricted under TABOR, a big push to make a change is in the works, and only part of that money will go to taxpayers – less than 40 percent in the form of a refund. The rest will go to “retail marijuana cultivators and purchasers.” Is it just me, or is the blue book written in such a way as to push for a “yes” vote? Read it closely, before you decide how you will vote. Page 3 has a list of blue-sky expenditures in case it passes. The first three items are absolutely blue-sky spending; marijuana impact grants isn’t enough information; screening, intervention, referral, and substance abuse treatment are all user-caused problems, for which taxpayers shouldn’t be held responsible. In any case, according to the blue book – after this year, the problem will be fixed. House Bill HB15-1367 changes state law whether BB passes or not. On page 5, the blue book says $14.1 million “is not yet allocated.” A “windfall” for Hickenlooper, perhaps? Proposition BB is a poor fix for what ails us. The Ballot Issue on page 7 says it all: In everything you have read and heard over the last several months, regarding refunds of excess taxes – refund to the taxpayers was in the first line. Now, on page 7, the blue book says: “instead of refunding these revenues to retail marijuana cultivation facilities, retail marijuana purchasers, and “other taxpayers.” All of a sudden, taxpayers aren’t as important as we were. The cultivators and the purchasers of pot will get a huge windfall – once – and we, the taxpayers will get a small one. Better that, than give up on TABOR. Administration needs to learn to live within their budgets, and the legislature needs to remember why we have TABOR in the first place. Vote NO on BB.

”

Patrick Gleason, state affairs director of the Americans for Tax Reform group, said:

“

It has the same impact as a tax increase, as passage would mean that Colorado residents keep less of their income than would've otherwise been the case.

”

Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

Vote Yes on BB sponsored the initiative. The campaign reported 14,250.00 in contributions.

No on Prop BB / No Excess Government registered to oppose the initiative, but did not report any campaign finance activity.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$14,250.00	$0.00	$14,250.00	$14,250.00	$14,250.00
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$14,250.00	$0.00	$14,250.00	$14,250.00	$14,250.00

Support

The following table includes contribution and expenditure totals for the committee in support of the initiative.

Committees in support of Colorado Marijuana TABOR Refund Measure, Proposition BB (2015)
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Vote Yes on BB	$14,250.00	$0.00	$14,250.00	$14,250.00	$14,250.00
Total	$14,250.00	$0.00	$14,250.00	$14,250.00	$14,250.00

Donors

The following table shows the top donors to the support committee:

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Colorado Providers Association	$4,800.00	$0.00	$4,800.00
Children's Hospital Colorado	$3,000.00	$0.00	$3,000.00
The Associated General Contractors of Colorado, Building Chapter, Inc	$3,000.00	$0.00	$3,000.00
Colorado Association of School Boards	$1,500.00	$0.00	$1,500.00
Nolbert D. Chavez & Associates, Inc.	$500.00	$0.00	$500.00

Opposition

The following table includes contribution and expenditure totals for the committee in opposition to the initiative.

Committees in opposition to Colorado Marijuana TABOR Refund Measure, Proposition BB (2015)
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
No on Prop BB / No Excess Government	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$0.00	$0.00	$0.00	$0.00	$0.00

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Media editorials

Support

The Denver Post editorial board argued:

“

In a nutshell, the money kept by the state would be directed at doing a lot of good. If the proposition fails, more than 60 percent of that revenue would go to marijuana buyers and the industry. And state taxpayers, as we said, would get $8 each. Whoop dee do. Let Colorado keep the $66.1 million to plow some of it into programs created to address some of the possible impacts of marijuana legalization.

”

The Aurora Sentinel editorial board wrote:

“

Clearly Proposition BB is the a logical $8 answer to Colorado’s ridiculous $60-million question. The referred ballot question acceptably fixes a clear and recurring problem in the state budget imposed by a previous statewide ballot question. What’s so frustrating is that these types of measures continue to surface in an attempt to do an end run around Colorado’s most atrocious piece of government: the so-called Taxpayers Bill of Rights. That ill-conceived and misleading mess inflicted upon ourselves in 1992 looked good because it was hyped as a way to stop the creep of taxes we all pay. It was a sham because it’s federal taxes that are so painful for most people, which were unaffected by TABOR. And, as Colorado found out the hard way, TABOR does so much more than just let voters decide when to raise taxes. It’s essentially representative government in Colorado. What too many voters didn’t realize is that the language of TABOR is impossibly convoluted and unworkable, creating a long list of headaches, one of which Prop. BB is trying to fix.

”

The Pueblo Chieftain argued:

“

The Legislature chose to write Prop BB this way in order to comply with Taxpayers’ Bill of Rights requirements dealing with overall state revenues. It’s an arcane and seemingly overly complicated approach to the problem. Even so, we still support Prop BB, which would provide $40 million for school construction, $12 million for state education grants and the remainder for the state general fund. One of Prop BB’s education grants — $300,000 for the Colorado State Fair’s Future Farmers of America and 4-H programs — is particularly helpful to Pueblo. To summarize, we recommend voters say “yes” to the state’s Prop BB.

”

Steamboat Today wrote:

“

While we’d like to know more about how the state plans to spend the unallocated $14.1 million, we think the potential benefits of approving Proposition BB — new schools, enhanced school programs and money for substance abuse screenings and treatment — far outweigh its defeat, which would result in a sizable tax refund going to an already highly lucrative industry and a woefully small refund to the average Colorado taxpayer.

”

Writing on behalf of the Daily Camera editorial board, Dave Krieger argued:

“

This statewide issue would authorize the state to retain and spend $66.1 million of tax receipts from retail marijuana sales. If it is not approved, the state will be required under TABOR to refund the money, most of it to the people on either side of the pot transactions that produced it. If refunded, Colorado taxpayers would get about $8 apiece. If the state keeps it, the majority will be spent on school construction. We recommend a yes vote.

”

The Greeley Tribune editorial board wrote:

“

The portion of state revenue that’s subject to TABOR hit $12.35 billion because the state’s economy did better than expected. That error means the state could be required to refund the money — $66.1 million — collected under the first year of the marijuana sales tax. To accomplish this, the state would drastically reduce the sales tax on pot until the money is “refunded.” That’s why the Legislature referred Proposition BB to the voters. It would fix this problem and allow the state to keep the revenue, something we think voters intended all along. When Colorado passed Amendment 64 in 2012, 55 percent of voters supported legalization. The next year, Proposition AA, which set the taxes for marijuana sales, passed with 65 percent of the vote — a larger percentage of people voted to tax marijuana than to legalize it. That seems pretty clear. Proposition BB deserves support. It won’t change or affect TABOR in any way. It just fixes the problem that resulted from the minor prognostication error. With $40 million earmarked for school construction, among other priorities, it’s easy for us to predict the state will put the money to good use.

”

Opposition

The conservative website Colorado Peaks Politics argued:

“

In 2013, Colorado taxpayers approved an excise tax on the sale of recreational marijuana. The demand for recreational pot, combined with high state tax collections in other areas, has led to a surplus of tax revenue that needs to be given back to Colorado taxpayers, per the state constitution, unless voters choose to plow those funds back into the state coffers. Unfortunately, that is exactly what a group of Democrats want to do, and they have a measure on the ballot this fall to achieve just that. Proposition BB will corral those tax dollars and prevent them from going back into the pockets of working Colorado families.

”

Path to the ballot

See also: Laws governing ballot measures in Colorado

The act was introduced into the Colorado General Assembly on April 20, 2015.

The legislature needed to approve the bill in both chambers by a simple majority. Legislation went back and forth between the two chambers multiple times until both could agree on amendments made to the measure. The final Colorado House of Representatives vote took place on May 6, 2015. The measure was approved, with 37 representatives voting "yea" and 26 voting "nay." The Colorado Senate passed the measure on the same day. Eight senators voted against referring the measure to the ballot, while 27 voted in favor of doing so.

Gov. Hickenlooper (D) needed to sign the legislation in order for the measure to appear on the ballot. He did so on June 4, 2015. Due to the Colorado TABOR, statewide voter approval was required to enact this legislation.

House vote

May 6, 2015, House vote

Colorado HB 15-1367 House Vote
Result		Votes	Percentage
a Yes		37	58.73%
No		26	41.27%

Senate vote

May 6, 2015, Senate vote

Colorado HB 15-1367 Senate Vote
Result		Votes	Percentage
a Yes		27	77.14%
No		8	22.86%

State profile

Demographic data for Colorado
	Colorado	U.S.
Total population:	5,448,819	316,515,021
Land area (sq mi):	103,642	3,531,905
Race and ethnicity**
White:	84.2%	73.6%
Black/African American:	4%	12.6%
Asian:	2.9%	5.1%
Native American:	0.9%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	3.5%	3%
Hispanic/Latino:	21.1%	17.1%
Education
High school graduation rate:	90.7%	86.7%
College graduation rate:	38.1%	29.8%
Income
Median household income:	$60,629	$53,889
Persons below poverty level:	13.5%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Colorado. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Colorado

Colorado voted for the Democratic candidate in five out of the seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in Colorado, accounting for 1.94 percent of the total pivot counties.

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Colorado had three Retained Pivot Counties and one Boomerang Pivot County, accounting for 1.66 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More Colorado coverage on Ballotpedia

• Elections in Colorado
• United States congressional delegations from Colorado
• Public policy in Colorado
• Endorsers in Colorado
• Colorado fact checks
• More...

See also

Suggest a link

• 2015 ballot measures
• Colorado 2015 ballot measures
• Colorado Legislature

External links

• House Bill 15-1367
• Colorado 2015 State Ballot Information Book

Additional reading

• Denver Post, "Colorado lawmakers start work on marijuana refund proposal," April 22, 2015