Background
Alexander Dorotik petitioned the Colorado Supreme Court for review of a decision in Colorado Court of Appeals Case No. 25CA30 involving a fee imposed by the Town of Breckenridge.
The petition raised questions about whether voter approval is required when a governmental entity charges a fee on an activity that directly and immediately produces more municipal revenue than the activity costs. It also challenged the court of appeals’ characterization of the charge considered in Colorado Union of Taxpayers Foundation v. City of Aspen as a fee on shopping rather than a fee on the distribution of single-use bags.
The Court’s Holding
The Colorado Supreme Court granted the petition for a writ of certiorari on two reframed questions. The first asks whether a governmental entity may, without voter approval, impose a fee on a revenue-positive activity—specifically, one that directly and immediately generates more revenue than it costs the municipality.
The second asks whether the court of appeals mischaracterized the fee in Colorado Union of Taxpayers Foundation v. City of Aspen, 2018 CO 36, 418 P.3d 506, as a fee on shopping rather than a fee on distributing single-use bags. The court denied review on all other issues. It did not decide the merits of either accepted question. Justice Gabriel did not participate.
Key Takeaways
- The court granted certiorari on two reframed questions concerning the characterization and voter-approval requirements of municipal fees.
- The court will consider whether a fee tied to an activity that immediately produces net municipal revenue may be imposed without voter approval.
- The order grants review only; it does not hold that Breckenridge’s fee is valid or invalid.
Why It Matters
The eventual decision may clarify when a municipal charge remains a fee and when its revenue-producing features trigger voter-approval requirements. That distinction could affect how Colorado local governments structure and defend similar charges.
The case may also clarify the proper reading of the single-use-bag charge addressed in Colorado Union of Taxpayers Foundation v. City of Aspen, which could shape the analysis of comparable municipal programs.