Should Colorado establish its current income tax rate as a legal ceiling—or keep existing law without adding another restriction?
That is the central question behind Proposition 136, which Colorado voters will decide on November 3, 2026. The citizen initiative would change state statutes rather than the Constitution, so it requires a simple majority to pass. (coloradosos.gov)
Supporters describe the proposal as protecting a predictable, competitive tax structure. Opponents argue that it could interfere with a separate proposal to create graduated income tax rates. Understanding Proposition 136 requires distinguishing its immediate effect from its interaction with Amendment 87. (cochamber.com)
A YES vote would establish a statutory maximum income tax rate of 4.4% for individuals and corporations, beginning with tax year 2027. It would not, by itself, reduce the current rate. (leg.colorado.gov)
A NO vote would reject the new ceiling. Rejecting Proposition 136 would not itself increase taxes; the existing 4.4% rate would remain unless changed through another applicable measure or legal process. (cpr.org)
The ballot question asks whether Colorado should change its statutes to cap individual and corporate income tax rates at 4.4% of federal taxable income.
That is a summary—not the complete ballot wording. The Secretary of State publishes the official question and final initiative text.
Originally filed as Initiative 232, the proposal would add Section 39-22-102.5, “Maximum Tax Rate,” to the Colorado Revised Statutes. It would become effective upon the governor’s proclamation and apply to tax years beginning January 1, 2027, and afterward. (coloradosos.gov)
The operative text names both the individual income tax rate and the corporate income tax rate. Neither could exceed 4.4% of a taxpayer’s federal taxable income under the new provision. (leg.colorado.gov)
The proposal does not require the rate to remain exactly 4.4%. Lower rates would remain possible. The Blue Book explains that the legislature or a citizen initiative could still reduce the income tax rate. (leg.colorado.gov)
The text addresses income tax rates. It does not establish new limits on property taxes, sales taxes, fees, or total government spending. Calling it a limit on all Colorado taxes would overstate its scope. (leg.colorado.gov)
Three additional details deserve attention.
Not because of Proposition 136 alone. It would cap the rate at its current level rather than reduce it. CPR’s voter guide explains that passage would leave the income tax bill unchanged on that basis. (cpr.org)
Yes. The Colorado Constitution already requires voter approval for tax rate increases. Proposition 136 would not create that requirement or permanently prevent future voters from approving a different rate. (leg.colorado.gov)
Amendment 87 proposes graduated income tax rates, including rates above 4.4% on taxable income exceeding $500,000. Those higher rates would conflict with Proposition 136’s ceiling.
The Blue Book says conflicting provisions generally are resolved according to which measure receives more votes. However, the exact outcome is uncertain; lawmakers or a court would determine how to resolve the conflict. It would be misleading to promise that either proposal would automatically take full effect, but one would think that the Constitution should prevail. (content.leg.colorado.gov)
The Secretary of State lists Suzanne Taheri and Michael Fields, both affiliated with Advance Colorado, as Initiative 232’s designated representatives. Registered supporting committees include Brighter Colorado and No on 87, Yes on 136. (coloradosos.gov)
The Colorado Chamber of Commerce also supports Proposition 136. Organized opposition includes Protect Colorado’s Future Coalition, which advocates for Amendment 87 and against the income tax cap. (cochamber.com)
Campaign affiliations provide context; they do not settle the policy question.
The arguments below describe competing policy positions, not guaranteed economic outcomes.
The Colorado Chamber argues that a stable tax structure helps individuals and businesses plan and makes Colorado more attractive for investment. (cochamber.com)
Counterargument: Opponents favor changing the existing structure through Amendment 87, arguing that graduated rates would distribute taxes more fairly. (protectcoloradosfuture.com)
The question to weigh: How much value should voters place on maintaining the current structure versus changing who pays and how much?
The Blue Book’s supporting argument describes Proposition 136 as reaffirming the rate voters approved in 2022. Supporters view that rate as fair and competitive. (leg.colorado.gov)
Counterargument: The opposing argument notes that future increases already require voter approval, making the additional ceiling unnecessary. (content.leg.colorado.gov)
The question to weigh: Does reaffirming the current rate provide meaningful protection beyond existing law?
Advance Colorado’s Michael Fields describes the proposal as a way to block efforts to raise income tax rates. (coloradopolitics.com)
Counterargument: Amendment 87’s supporters argue that higher rates on higher incomes would help fund education, health care, and child care while allowing lower rates for other taxpayers. (protectcoloradosfuture.com)
The question to weigh: Is preserving the current ceiling more important than the alternative tax and funding structure?
The arguments below describe competing policy positions, not guaranteed economic outcomes.
The Blue Book’s opposing argument says Proposition 136 adds little lasting protection because voters already must approve rate increases and could approve a future change overriding this measure. (leg.colorado.gov)
Counterargument: Supporters consider an explicit ceiling a worthwhile affirmation of the current rate. (content.leg.colorado.gov)
The question to weigh: Is another statutory restriction useful—or largely redundant?
Opponents warn that approving both Proposition 136 and Amendment 87 could produce confusion and a potentially costly legal dispute. (leg.colorado.gov)
Counterargument: Fields argues that the cap could block higher rates while allowing Amendment 87’s lower rates to take effect. Amendment 87’s proponents dispute that interpretation. Neither campaign’s preferred outcome should be treated as settled law. (coloradopolitics.com)
The question to weigh: How much uncertainty are voters willing to accept about the combined result?
Protect Colorado’s Future urges voters to reject Proposition 136 and approve Amendment 87 as a package addressing tax fairness and public-service funding. (protectcoloradosfuture.com)
Counterargument: The Colorado Chamber opposes the graduated-tax alternative, arguing that significant tax changes could weaken Colorado’s business competitiveness. (cochamber.com)
The question to weigh: Which approach better balances household affordability, business conditions, and public services?
The September 10, 2026, official fiscal impact statement finds no fiscal impact on state or local government from Proposition 136 itself. Because the ceiling matches the existing rate, the measure does not independently change revenue or spending. (content.leg.colorado.gov)
| Fiscal effect | FY 2026–27 | FY 2027–28 |
|---|---|---|
| State revenue | $0 | $0 |
| State expenditures | $0 | $0 |
| Transferred funds | $0 | $0 |
| Change in TABOR refunds | $0 | $0 |
| Additional state staffing | None | None |
These are the official estimates for Proposition 136—not a guarantee about the fiscal outcome if conflicting measures both pass. (content.leg.colorado.gov)
The strongest case for YES is maintaining a predictable income tax structure and resisting higher rates. The strongest case for NO is that existing voter-approval protections already apply, while this proposal could complicate implementation of Amendment 87. (cochamber.com)
My takeaway is that voters should separate three questions:
A voter can favor low taxes while questioning whether this measure is necessary. Another can support public services while disagreeing with the graduated-tax alternative.
The important distinction: Proposition 136 is a proposed rate ceiling, not an immediate tax cut. (cpr.org)
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