TABOR, or the Taxpayer Bill of Rights, is an amendment to the Colorado Constitution voters approved in 1992. The amendment limits the amount of revenue a government can collect and spend, and requires voter approval for tax increases and to issue debt and other multiyear financial obligations. Government-owned businesses, or "enterprises," which are funded primarily by user fees, are not subject to these limitations and requirements.

Voters may lift TABOR's revenue restrictions, known as "de-Brucing." Most of Colorado's largest municipalities and virtually all of the state's school districts are exempt from TABOR revenue restrictions.

Revenue cap

When revenues exceed TABOR limits, the Town has two choices:
1. Refund the money in some manner
2. Ask voters to keep and spend the money on local services (up to a year retroactively)

Both options have occurred in Castle Rock the past.

The Town's current TABOR status

Town Council in June 2014 directed staff to manage Town finances to keep revenues within TABOR limits to the extent possible, and staff has done so.

Still, due to favorable economic conditions and increased Town revenue, the Town exceeded its TABOR revenue cap for 2015 by $714,580. Various factors contributed to the surplus, including strong sales tax growth and contributions for the construction of Castle Rock Parkway / North Meadows Extension and Philip S. Miller Park.

Council decided to send the 2015 TABOR matter to a public vote, which occurred as part of the Nov. 8, 2016 general election, resulting in the Town being permitted to retain the excess revenues for transportation or public safety.