Niwot Retention of Revenue Above State Limits

Under Issue 305, the proposed City of Niwot keeps and spends all the revenue it collects from every source not otherwise excluded from fiscal year spending, beginning in 2027 and in each year after, without regard to any state revenue or spending limit. The one limit it names is Article X, Section 20 of the state constitution, the Taxpayer's Bill of Rights (TABOR). The ballot lists state and local grants; fees and charges; sales and use taxes; and property taxes, and says the list is not complete. The question sets no tax rate, no dollar amount and no final year.

The incorporation petition asked for the question to go to the proposed municipality's voters at the incorporation election. Issue 305 takes effect only if voters approve incorporation under Question 300.

The retention clauses in Issues 302, 303 and 304 each reach the revenue of that question's tax, and the clause in Issue 306 reaches its bond proceeds and their investment earnings. None of those clauses reaches the city's other income. Issue 305 is the only question on Niwot's ballot that does.

The Niwot Incorporation Committee's pro forma budget, version 1.8 of September 21, 2026, lists that other income: shares of the state Highway Users Tax Fund, the Road and Bridge Fund and the Specific Ownership Tax; grants and the Conservation Trust Fund; municipal fees; and building permit fees. It models grants at $270,000 a year from 2029, assuming one successful application a year, and says grant revenue is not guaranteed.

The fees line, $75,000 in 2028, could come from a solid waste franchise, business and liquor licenses and municipal court fines. The budget leaves the choice of fees and their rates to a future elected council. It notes that the council could add a franchise fee on electric and gas bills but assumes none.

Issue 305 also starts a year ahead of the sales, use and marijuana taxes, which begin January 1, 2028. The committee's budget treats 2027 as a transition year with no recurring municipal revenue.

The Election Commission's summary says the TABOR limit then applies and the city must refund revenue collected above it. If approved, Issues 302, 303, 304 and 306 each keep that question's revenue as a voter-approved revenue change.