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HomeProposition 136: Stance

BALLOT MEASURE SUMMARY

Proposition 136 caps both the individual and corporate income tax rates at the current rate of 4.4%, permanently limiting the maximum Colorado income tax rate. The measure is designed to counter Amendment 87, which proposes a graduated income tax that would cut rates for most taxpayers while increasing the rate on the highest incomes.

BACKGROUND

The sponsors of Proposition 136 favor Colorado’s existing flat income tax. This proposal would permanently limit the maximum Colorado income tax rate to 4.4% for both individuals and corporations.

Proposition 136 is designed to counter Amendment 87, which proposes replacing the flat tax with a graduated income tax — cutting rates for most taxpayers, but setting a maximum marginal rate of 8.41% on the highest incomes. The two measures directly conflict: Proposition 136 would prohibit rates above 4.4%, while Amendment 87 would establish rates above 4.4% only for annual income over $500,000.

LINK TO FISCAL NOTE

For Fiscal Year 25-26 the individual and corporate income taxes supply 66.35% of the funds available to the General Fund. The current fiscal impact of Initiative 232 is zero.

Caveat: If both 232 and 195, Graduated Income Tax, were to pass and be held to exist concurrently, with only 195’s lower rate for each category of revenue being implemented, the revenues collected from the income tax would drop below existing tax collections.

LEAGUE POSITION

The League of Women Voters promotes an open governmental system that is representative, accountable, and responsive.

(League of Women Voters Impact on Issues 2024-2026 P 12)

The League of Women Voters of Colorado supports measures to ensure that the structures, procedures, and practices of the Colorado legislature be characterized by:

DECISION-MAKING CAPABILITY. A General Assembly with the knowledge, resources, and power to make decisions that meet the needs of Colorado and reconcile conflicting interests and priorities.

(League of Women Voters of Colorado Positions for Action 2025-2026 P. 42)

The League of Women Voters of Colorado supports a system to raise revenue which incorporates social, environmental, and economic goals. The use of the following criteria for evaluating Colorado revenue structure: ability to pay, equitable, certain, convenient, economical, flexible, adequate, reliable, elastic, diverse, and simple. (The League) supports progressive state income tax, at both the individual and corporate (levels).

(League of Women Voters of Colorado Positions for Action 2025-2026 P. 35)

RATIONALE FOR STANCE

The League has long supported reform for TABOR (Taxpayer Bill of Rights). Initiative 232 is not reform, but a duplication of existing tax rates. However, if coupled with 195, the tax rates for those in low tax brackets might be implemented while the rates for those in higher brackets might be capped at the existing rate of 4.4%.

When combined with 195, Initiative 232 might cause significant harm to the ability to raise funds in order to pay for the services that Colorado citizens want.

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HOW DOES THE LEAGUE TAKE A STANCE?

These two publications are designed to help League members use LWVUS and LWVCO public policy positions effectively at the state and local levels.

NOTE: For information on how to take action that the League supports or opposes, please visit our Take Action page.

LWVCO 2026-2027 Positions for Action

LWVUS 2024 - 2026 Impact on Issues

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