Colorado voters on Tuesday appeared on the verge of adopting the most sweeping set of changes to the state’s tax code in 34 years, with a ballot measure to raise the constitutionally-mandated revenue cap well ahead in preliminary results, and another to gradually hike income taxes on Coloradans earning over $500,000 a year holding on to a slim lead.

Meanwhile, a conservative countermeasure to block the latter proposal with a cap on income tax rates appeared headed for defeat.

Image

Amendment 87, the graduated income tax measure, was the closest of the trio of tax-related ballot measures. As of 10 p.m., it led with 50.6% support, with 49.4% opposed. Unlike other constitutional amendments on the ballot this year, because it only repeals, rather than amends, language in the state constitution, it needs only a simple majority to pass.

Proposition 136, which would block Amendment 87 by capping the state’s income tax rate at 4.4%, stood at 47% support, short of the majority needed to pass. If both measures were to pass, the conflicting provisions within them would be resolved according to which received more yes votes.

Results showed Proposition NN, a legislatively referred measure to raise the state’s constitutionally-mandated revenue cap, on track to pass with 55% of voters in support and 45% opposed.

Amendment 87 proposes to hike corporate and individual income tax rates to 7.4% for income above $500,000 and gradually increase the rate to 8.4% for income above $1 million. Those higher rates would apply to the top 3% of earners, while the 97% of Coloradans who earn less than $500,000 per year would see a slight income tax reduction. A fiscal analysis by nonpartisan state legislative staff estimated that the measure would raise $2 billion in additional revenue for the state by the 2027-28 fiscal year.

State analysts projected Proposition NN, by raising the revenue cap set by the Taxpayer’s Bill of Rights, would increase the revenue the state is allowed to keep by about $500 million a year. The measure would likely eliminate TABOR refunds, the money returned to Colorado taxpayers in years when the revenue cap is exceeded, for the foreseeable future.

Proposition 136 was backed by conservative “dark money” group Advance Colorado, which aimed to block Amendment 87 by capping state income tax rates at their current level of 4.4%, preventing the amendment’s higher rates on higher earners from taking effect.