Colorado Democrats want to bring changes to TABOR with two November ballot measures

Two major ballot measures Democrats are pursuing for November could dramatically reshape Colorado’s tax system — and significantly weaken the Taxpayer’s Bill of Rights, or TABOR.

Either proposal on its own would represent a major shift. Together, they would ask voters to rethink how Colorado collects and spends tax revenue, with supporters saying the changes are needed to better fund education, health care, childcare and other services.

One proposal, backed by the Colorado Education Association, would raise the state’s TABOR spending cap by exempting K–12 education funding from it. That would allow the state to keep hundreds of millions of dollars that would otherwise be refunded to taxpayers, while guaranteeing education spending increases of at least two percent per year.

Supporters say TABOR’s cap — tied to population growth and inflation — has held education funding at roughly inflation-adjusted 1989 levels. Opponents argue the measure would all but eliminate future TABOR refunds and create a large pool of unrestricted state spending.

A second proposal, advanced by the progressive Bell Policy Center, would replace Colorado’s flat income tax with a graduated system. Under that plan, most Coloradans would pay less in income taxes, while higher earners — particularly those making more than five hundred thousand dollars a year — would pay significantly more.

Backers say roughly 97 percent of taxpayers would see a cut, while critics warn the measure would upend a system voters have consistently protected.

Voters have rejected recent attempts to weaken TABOR, including Proposition CC in 2019 and Proposition HH in 2023. Whether this time will be different remains an open question — especially if both measures appear on the same ballot.