DENVER | A federal court has revived a lawsuit challenging Colorado’s limits on taxes and spending.
The 10th U.S. Circuit Court of Appeals on Monday said a lower court erred when it ruled that 10 local governments had no legal standing to file a lawsuit seeking to overturn a Colorado constitutional amendment known as the Taxpayer Bill of Rights or TABOR.
In a 2-1 decision, the appeals court said the local governments do have a right to sue. The court didn’t rule on the merits of the lawsuit.
TABOR requires voter approval for tax increases, and the lawsuit claims that violates the federal law that admitted Colorado as a state.
The suit claims the law requires Colorado to have a form of government that gives taxation power to elected officials, not voters.