Briefline

Colorado voters to decide on another state income tax cut next November

By: - November 18, 2021 1:42 pm

Gregory Grimes, second-time voter stands in front of ballot drop off before turning in ballot outside of the Martin Luther King Jr. Library polling site in Aurora on Nov. 3, 2020. (Carl Payne for Colorado Newsline)

For the second time in two years, a measure to reduce the state income tax rate gained enough signatures to land on Colorado’s ballot, the secretary of state’s office announced Thursday. 

Colorado voters will decide in November 2022 whether to lower the income tax rate to 4.4% from 4.55%. 

The measure, known as Initiative 31, is backed by conservatives Jon Caldara, who heads the Independence Institute, and state Sen. Jerry Sonnenberg. Supporters submitted over 215,000 signatures on the petition to get it on the ballot, of which the secretary of state’s office projects approximately 148,000 will be valid. They needed at least 124,632 signatures to place it on the ballot.

A fiscal impact statement released by nonpartisan state staff in July estimates that the proposed reduced tax rate would cost the state’s General Fund about $572 million in fiscal year 2022-23 and about $398 million in fiscal year 2023-24. It estimates that an individual taxpayer would save about $95.

Colorado voters will also see a temporary income tax rate reduction to 4.5% because the state will exceed the Taxpayer Bill of Right’s constitutional cap on how much state revenue can increase each year.

Initiative 31 will appear on ballots two years after Colorado voters in 2020 approved a previous state income tax reduction, also backed by Caldara and Sonnenberg, that brought the rate to 4.55% from 4.63%.

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Sara Wilson
Sara Wilson

Sara Wilson covers state government, Colorado's congressional delegation, energy and other stories for Newsline. She formerly was a reporter for The Pueblo Chieftain, where she covered politics and government in southern Colorado. Wilson earned a master's degree in journalism from Northwestern University, and as a student she reported on Congress and other federal beats in Washington, D.C.

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