Amendment 87 – Graduated Income Tax

Amendment 87 deletes “at one [tax] rate, excluding refund tax credits or voter-approved tax credits;” and “tax or” from Article X, Section 20 (TABOR) of the state constitution which passed with a simple majority in 1992. The rest of Amendment 87 adds or amends language in Colorado statutes so Amendment 87 only needs a simple majority to pass.

Amendment 87 would impose a graduated income tax with taxpayers with Colorado taxable income of less than $510,834 owing less in taxes and other taxpayers owing more. The first $25,000 of income is taxed at 3.7%, the amount from $100,001 to $500,000 is taxed at the current flat rate of 4.4% and any amount over $1M is taxed at 8.4%. See the abbreviated table below for the average changes for income brackets up to $5M.

Increased revenue collected under Amendment 87 would be exempt from the TABOR limit, meaning that the increased revenue can be retained by the government rather than returned to the taxpayers if it exceeds the TABOR limit. The increased revenue must be spent on K-12 education, healthcare, and early childhood care and education. It may not replace spending on those services.

Recommendation: Tax

No other state has adopted TABOR’s strict handcuffs. Amendment 87 gives Colorado more leeway in collecting and retaining revenue, but limits what the money can be spent on.

Opponents of Amendment 87 point out that the brackets do not increase with inflation, so more and more taxpayers are likely to pay higher taxes each year. However, the tax brackets and tax rates are written in statute and can be amended by the 100 members of the state legislature. If the brackets and rates were enshrined in the constitution, only the Colorado electorate could make adjustments.

Proposition 136, also on this ballot, would limit the state income tax rate to the current 4.4%. If both Prop 136 and Amendment 87 pass, the tax rates in Amendment 87 for incomes over $500K would be in conflict with Prop 136. According to the Blue Book, if both Prop 136 and Amendment 87 pass, a court or the state legislature will need to resolve the conflict.

Website for the Yes Side – Protect Colorado’s Future
https://protectcoloradosfuture.com/

Website for the No Side – Brighter Colorado
https://brightercolorado.org/progressivetax/


Approved Ballot Language
Amendment 87 (CONSTITUTIONAL)

SHALL STATE TAXES BE INCREASED $2.7 BILLION ANNUALLY, IN ORDER TO INCREASE OR IMPROVE LEVELS OF PUBLIC SERVICES, INCLUDING K-12 PUBLIC SCHOOL EDUCATION, HEALTH CARE, AND EARLY CHILD CARE AND EDUCATION SERVICES, BY AN AMENDMENT TO THE COLORADO CONSTITUTION AND A CHANGE TO THE COLORADO REVISED STATUTES REPEALING EXISTING LAW AND CREATING NEW LAW TO REPLACE THE UNIFORM STATE INCOME TAX RATE WITH A GRADUATED INCOME TAX STRUCTURE, AND, IN CONNECTION THEREWITH, AMENDING THE TAXPAYER’S BILL OF RIGHTS TO ELIMINATE THE CONSTITUTIONAL REQUIREMENT FOR ALL TAXABLE NET INCOME TO BE TAXED AT ONE RATE WITH NO ADDED TAX ON INCOME; ESTABLISHING VARIOUS INCOME TAX RATES BASED ON THE AMOUNT OF TAXABLE INCOME EARNED BY INDIVIDUALS, ESTATES, TRUSTS, AND CORPORATIONS, WHILE MAINTAINING THE CURRENT 4.4% TAX ON INCOME FROM THE SALE OF A PRINCIPAL RESIDENCE, WHICH WILL RESULT IN THE ESTIMATED CHANGE IN INCOME TAXES OWED BY INDIVIDUALS AS IDENTIFIED IN THE FOLLOWING TABLE; AND AUTHORIZING THE STATE TO RETAIN AND SPEND ANY INCREASED REVENUE FROM THE NEW TAX STRUCTURE, AS A VOTER-APPROVED REVENUE CHANGE, TO SUPPLEMENT CURRENT LEVELS OF FUNDING FOR K-12 PUBLIC SCHOOL EDUCATION, HEALTH CARE, AND EARLY CHILD CARE AND EDUCATION PROGRAMS??

Change in Income Taxes Owed by Income Category
(Abbreviated Table)
Income Categories     Change in Avg Income Tax Owed
$25,000 or less         -$9
$25,001 - $50K           -$119
$50,001 - $100K         -$210
$100,001 - $200K       -$298
$200,001 - $500K       -$325
$500,001 - $1M         -$325
$1,000,001 - $2M       +$4,764
$2,000,001 - $5M       +$13,914
Income categories use adjusted gross income reported to the federal Internal Revenue Service.

YES/FOR ___
NO/AGAINST ___

Amendment 87 initiative language filed with the Secretary of State
https://www.coloradosos.gov/pubs/elections/Initiatives/titleBoard/filings/2025-2026/195Final.pdf