The Title Board on Wednesday awarded a ballot title to an initiative seeking to reduce the state sales and use tax rate and lower revenue by an estimated $14.2 million annually.

Initiative #41, from designated representatives Michael Fields of Parker and Suzanne Taheri of Centennial, would drop the sales tax rate from 2.9% to 2.89% beginning on July 1, 2023. The largest spending cuts would affect health and human services programs, K-12 education, and corrections and judicial operations, according to a nonpartisan fiscal analysis.

However, the proponents objected to the phrasing of the ballot title, arguing that the tax rate reduction would likely affect refunds under the Taxpayer Bill of Rights, and not government spending on programs.

Title Board member Julie Pelegrin, representing the Office of Legislative Legal Services, pointed out the governor has signed into law House Bill 1321, which mandates certain title language for ballot initiatives that decrease tax revenue, including the three largest categories of affected spending.

“This might be an interesting test case,” said Pelegrin, acknowledging that “we don’t know whether, in the next couple of years, there would be an actual reduction in spending or if it would just come out of the TABOR refund.”

“I think the constitution conflicts with that,” Taheri countered. “The constitution says you have to set a clear title, and this interferes with a clear title.”

The Title Board has a responsibility to follow the legislature’s new directive, Pelegrin said. “If the Supreme Court considers this language that’s now in the statute and [deems] this title to be unconstitutional, that’s for the Supreme Court to decide.”

Board member David Powell, representing Attorney General Phil Weiser, agreed, adding, “I don’t know how we get around not including that” language.

The Title Board is charged with determining whether a proposed ballot measure adheres to a single subject. If so, the board sets a title to appear before voters that is brief, yet encompasses all central features of the proposal. Initiatives that receive a ballot title advance toward the signature-gathering phase.