Colorado Income Tax Amendment Remains Unresolved as Vote Counts Continue

A closely watched ballot measure that would alter Colorado's tax structure continues to face a tight battle as election officials process the final votes across the state. Amendment 87, which proposes replacing the state's flat income tax rate of 4.4% with a graduated tax system ranging from 3.7% to 8.4%, remains too close to call following recent updates from election authorities.

Latest election returns show the measure with 50.4% support against 49.6% opposition, with all precincts reporting statewide. Because Amendment 87 is a constitutional amendment, it requires a 55% voter approval threshold to pass. The measure represents a significant potential change for Colorado voters, as it would institute the first modification to the state's income tax structure in more than forty years.

The ongoing debate has drawn starkly different views from advocacy groups and taxpayers throughout the state. Proponents argue that introducing a graduated tax framework will benefit lower- and middle-income residents by providing meaningful tax relief. Conversely, opponents caution that the policy could place an undue financial burden on small businesses and weaken the state's economic competitiveness.

Under the proposed graduated structure, earners making between $500,001 and $750,000 annually would be taxed at 7.4%, while individuals earning between $750,001 and $1 million would face a 7.9% rate. Taxpayers bringing in more than $1 million per year would see their rate increase to 8.4%, marking a notable four percentage point rise from the current flat rate.

The ballot also featured several other consequential measures touching on fiscal policy and public services. Proposition 136, which sought to cap the state income tax rate at 4.4% and potentially conflict with Amendment 87, was trending toward failure. Meanwhile, voters approved Proposition NN, which increases state investment in K-12 public education by 2% annually over the next decade to support teacher salaries, smaller class sizes, and career programs.

As election officials continue finalizing the tallies, the ultimate fate of Amendment 87 will depend on whether proponents can reach the required supermajority threshold. The outcome will decide the future direction of tax policy in Colorado and determine whether the state moves away from its long-standing flat tax model.