Colorado Voters Decide Four Tax Measures on Election Night

Colorado residents cast ballots on Tuesday to determine the state's near-term fiscal direction, weighing four statewide tax measures that require simple majorities to pass. The proposals address income taxation, public school funding, and conservation spending, each offering different paths for managing state revenue against a backdrop of projected budget shortfalls.

Amendment 87 proposes changing the state's flat 4.4% income tax rate. If approved, the measure would increase taxes on higher earners to generate an additional $2 billion for childcare and education. This approach would lower taxes for the majority of residents while raising costs for the wealthiest individuals. The measure seeks to replace the flat tax structure established in the 1980s.

Proposition 136 serves as a countermeasure to Amendment 87. Sponsored by the conservative group Advance Colorado, the proposal would maintain the current flat income tax rate. It was introduced specifically to react to the progressive-backed Amendment 87. If both measures pass, the issue may reach the courts, with the measure receiving the highest number of votes typically taking effect.

Two other proposals address TABOR refunds, which are mandated by the Taxpayer’s Bill of Rights. Proposition NN would allow the state to retain $500 million for school funding that would otherwise be refunded to taxpayers. Proposition 137 would direct $175 million to conservation and wildfire prevention from similar TABOR refund pools. These measures force voters to choose between immediate tax refunds and specific state program funding.

The campaigns for these measures have seen substantial financial investment, particularly from outside groups. Millions of dollars from conservative dark-money groups have targeted Amendment 87 in recent weeks. Proponents, including the Bell Policy Center, argued that the flat tax system is unfair and that higher earners should contribute more to address recurring budget cuts. Opponents, including Gov. Jared Polis and major business groups, warned that the changes could drive companies and wealthy residents out of Colorado.

Attorney General Phil Weiser emerged as a new opponent of Amendment 87 in the final days of the campaign. The state is currently bracing for a $1 billion budget deficit next year, driven in part by rising Medicaid costs and revenue growth limits imposed by TABOR. Lawmakers have described the state's fiscal reality as clouded by systemic budgeting constraints in recent years.

Polls closed at 7 p.m. Tuesday, with preliminary results expected soon after. The outcomes will directly influence the state's economic outlook and provide insight into the political leanings of Colorado voters. While the state has trended toward Democratic candidates, Republicans have argued that voters remain fiscally conservative on tax issues.

A defeat for Amendment 87 or Proposition NN would represent a setback for groups seeking to reform the state's tax code. The results will determine whether the state pursues progressive tax changes or maintains its current statutory and constitutional tax structures for the coming fiscal year.