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2007 Colorado Attorney General Reports and Opinions 1 (2007)

handle is hein.sag/sagco0069 and id is 1 raw text is: COLORADOSTATE SERVICES BUILDING
JOHN W. SUTHERS                 STATE OF                         1525 Sherman Street - 5th Floor
Attorney General                  DEPARTMENT OF LAW             Denver Colorado 80203
CYNTHIA H. COFFMAN                                              Phone (303) 866-4500
Chief Deputy Attorney General   OFFICE OF THE ATTORNEY GENERAL
DANIEL D. DOMENICO
Solicitor General
FORMAL
No. 07-01
OPINION
AG Alpha: RV EN AGBCB
OF
July 6, 2007
JOHN W. SUTHERS
Attorney General
The Department of Revenue has requested an opinion concerning its
obligation to update the coal severancetax rate inder section 39-29-106(5),
C.R.S. (2006), in light of the limitations imposed by article X, section 20 of the
Colorado Constitution, the Taxpayers' Bill of Rights (TABOR).
Questions Presented and Answers
The specific questions received from the Department are:
1.    Must the Department of Revenue increase the coal tax rate pursuant to
section 39-29-106(5), C.R.S. (2006), or does that statute violate the
prohibitions of Article X, Section 20 (TABOR), on tax increases or new
tax policies absent voter approval?
2.    If the Department must enforce the increases in the coal tax rate, must
the rate be adjusted to the 1978 index of producers' prices, or does the
Department have discretion to raise the tax by a smaller increment?

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