Colorado Proposition 121, State Income Tax Rate Reduction Initiative (2022)
Colorado Proposition 121 | |
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Election date November 8, 2022 | |
Topic Taxes | |
Status![]() | |
Type State statute | Origin Citizens |
Colorado Proposition 121, the State Income Tax Rate Reduction Initiative, was on the ballot in Colorado as an initiated state statute on November 8, 2022. The measure was approved.
A "yes" vote supported decreasing the state income tax rate from 4.55% to 4.40% (including for domestic and foreign C corporations) for tax years commencing on or after January 1, 2022. |
A "no" vote opposed decreasing the state income tax rate to 4.40%, thereby leaving in place the current rate of 4.55%. |
Election results
Colorado Proposition 121 |
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Result | Votes | Percentage | ||
1,581,163 | 65.24% | |||
No | 842,506 | 34.76% |
Overview
What did Proposition 121 do?
- See also: Ballot language and full text
Proposition 121 decreased the state income tax rate from 4.55% to 4.40% for tax years commencing on or after January 1, 2022. Proposition 121 was also designed to reduce the tax rate for domestic and foreign C corporations operating in Colorado from 4.55% of Colorado net income to 4.40%.[1]
Who supported and opposed Proposition 121?
- See also: Campaign finance, Support, and Opposition
Jon Caldara of the Independence Institute and Republican State Senator Jerry Sonnenberg filed the initiative. The Independence Institute describes itself as a free-market think tank with a mission to "empower individuals and to educate citizens, legislators and opinion makers about public policies that enhance personal and economic freedom."[2]
Colorado Character registered as a committee to support the initiative. The committee raised $546,500 ($250,000 each from Colorado Rising Action and Defend Colorado, $45,000 from Coloradans for Civil Liberties, and $1,500 from Independence Institute). The committee reported expenditures totaling $545,130.[3]
Path 2 Zero registered to support Propositions 121, 124, 125, 126, and Amendment E; and registered to oppose Propositions 123, GG, FF, and Amendment F. It is impossible to distinguish between funds spent on each individual measure. The committee reported $10,430.70 in in-kind contributions from Independence Institute.[4]
Keeping Colorado Great registered as a committee to oppose the initiative. The committee reported $295,001 in contributions.[3]
Coloradans Coming Together registered to oppose Proposition 121 and support Proposition GG. The committee reported $95,841.86 in cash and in-kind contributions and $2,207.50 in cash expenditures.[3]
What is the history of the state income tax rate in Colorado?
In 2020, Colorado voters approved Proposition 116, also filed by Jon Caldara of the Independence Institute and State Sen. Jerry Sonnenberg (R). The initiative decreased the state income tax rate for individuals, estates, and trusts from 4.63% of federal taxable income to 4.55% for tax years commencing on and after Jan. 1, 2020. The measure also reduced the tax rate for domestic and foreign C corporations operating in Colorado from 4.63% of Colorado net income to 4.55%. It was approved by a vote of 57.86% to 42.14%.
Prior to 1987, the individual income tax rates in Colorado were graduated, meaning those with higher incomes paid higher tax rates and those with lower incomes paid lower rates. The Colorado individual income tax rate has been a flat tax rate since 1987. The flat tax was 5% from 1987 to 1998. It was lowered to 4.75% in 1999. The rate was 4.63% since 2000 until it was lowered to 4.55% in 2020 through voter approval of Proposition 116. According to the Colorado Legislative Council Staff, the rates were lowered to reduce the TABOR surplus.[5]
Text of measure
Ballot title
The ballot title for the initiative was as follows:[1]
“ | Shall there be a change to the Colorado Revised Statutes reducing the state income tax rate from 4.55% to 4.40%?[6] | ” |
Full text
The full text of the ballot initiative is below:[1]
Readability score
- See also: Ballot measure readability scores, 2022
Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state board wrote the ballot language for this measure.
The FKGL for the ballot title is grade level 9, and the FRE is 62. The word count for the ballot title is 18.
Support
Jon Caldara of the Independence Institute and Republican State Senator Jerry Sonnenberg filed the initiative.[1]
Supporters
Officials
- State Sen. Jerry Sonnenberg (R)
Organizations
Arguments
Official arguments
The following is the argument in support of the measure found in the Colorado Blue Book:[7]
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Opposition
Individuals
- Scott Wasserman - President of the Bell Policy Center and the Bell Action Network
Arguments
Official arguments
The following is the argument in opposition to the measure found in the Colorado Blue Book:[8]
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Media editorials
- See also: 2022 ballot measure media endorsements
Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.
Support
Opposition
Campaign finance
Colorado Character registered as a committee to support the initiative. The committee raised $546,500 ($250,000 each from Colorado Rising Action and Defend Colorado, $45,000 from Coloradans for Civil Liberties, and $1,500 from Independence Institute). The committee reported expenditures totaling $545,130.[3]
Path 2 Zero registered to support Propositions 121, 124, 125, 126, and Amendment E; and registered to oppose Propositions 123, GG, FF, and Amendment F. It is impossible to distinguish between funds spent on each individual measure. The committee reported $10,430.70 in in-kind contributions from Independence Institute.[9]
Keeping Colorado Great registered as a committee to oppose the initiative. The committee reported $295,001 in contributions and $293,328.32 in expenditures.[3]
Coloradans Coming Together registered to oppose Proposition 121 and support Proposition GG. The committee reported $95,841.86 in cash and in-kind contributions and $2,207.50 in cash expenditures.[3]
Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
---|---|---|---|---|---|
Support | $546,500.00 | $42,256.12 | $588,756.12 | $545,129.49 | $587,385.61 |
Oppose | $305,002.00 | $85,840.86 | $390,842.86 | $295,535.82 | $381,376.68 |
Total | $851,502.00 | $128,096.98 | $979,598.98 | $840,665.31 | $968,762.29 |
Support
The following table includes contribution and expenditure totals for the committees in support of Proposition 121.
Committees in support of Proposition 121 | |||||
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Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Colorado Character | $546,500.00 | $0.00 | $546,500.00 | $545,129.49 | $545,129.49 |
Americans for Prosperity Colorado Issue Committee | $0.00 | $31,825.42 | $31,825.42 | $0.00 | $31,825.42 |
Path 2 Zero | $0.00 | $10,430.70 | $10,430.70 | $0.00 | $10,430.70 |
Total | $546,500.00 | $42,256.12 | $588,756.12 | $545,129.49 | $587,385.61 |
Donors
The following table includes the top donors to the support committees.
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Colorado Rising Action | $250,000.00 | $0.00 | $250,000.00 |
Defend Colorado | $250,000.00 | $0.00 | $250,000.00 |
Coloradans for Civil Liberties | $45,000.00 | $0.00 | $45,000.00 |
Independence Institute | $0.00 | $8,923.96 | $8,923.96 |
Independence Institute | $1,500.00 | $0.00 | $1,500.00 |
Opposition
The following table includes contribution and expenditure totals for the committee in opposition to Proposition 121.[3]
Committees in opposition to Proposition 121 | |||||
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Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Keeping Colorado Great | $295,001.00 | $0.00 | $295,001.00 | $293,328.32 | $293,328.32 |
Coloradans Coming Together | $10,001.00 | $85,840.86 | $95,841.86 | $2,207.50 | $88,048.36 |
Total | $305,002.00 | $85,840.86 | $390,842.86 | $295,535.82 | $381,376.68 |
Donors
The following table includes the top donors to the opposing committees.[3]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
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NEA | $250,000.00 | $0.00 | $250,000.00 |
Colorado Fund for Children and Public Education | $45,000.00 | $0.00 | $45,000.00 |
Methodology
To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.
Background
Proposition 116 of 2020
In 2020, Colorado voters approved Proposition 116, also filed by Jon Caldara of the Independence Institute and State Senator Jerry Sonnenberg (R). The initiative decreased the state income tax rate for individuals, estates, and trusts from 4.63% of federal taxable income to 4.55% for tax years commencing on and after January 1, 2020. The measure also reduced the tax rate for domestic and foreign C corporations operating in Colorado from 4.63% of Colorado net income to 4.55%. It was approved by a vote of 57.86% to 42.14%.
Two committees led the campaign in support of Proposition 116 in 2020: Energize our Economy (306 Real Fair Tax) and Americans for Prosperity Colorado Issue Committee. Together, the committees reported $1.55 million in contributions. The top three donors (which gave 99.64% of the total contributions) were Unite for Colorado, Independence Institute, and Colorado Rising State Action. Protect Colorado's Recovery and Fair Tax Colorado registered to oppose the measure. The committees reported $3.19 million in contributions. The top donor was the North Fund, which provided $750,000.[10]
Colorado individual income tax rate history
Prior to 1987, the individual income tax rates were graduated, a tax system in which different rates are applied to different levels of income. The Colorado individual income tax rate has been a flat tax rate since 1987. The flat tax was 5% from 1987 to 1998. It was lowered to 4.75% in 1999. The rate was 4.63% until voters approved Proposition 116 in 2020, which reduced the rate to 4.55%. According to the Colorado Legislative Council Staff, the rates were lowered to reduce the TABOR surplus.[5]
The following table shows the history of Colorado's individual income tax rates.[5]
Colorado individual income tax revenue
The following table shows income tax revenue in Colorado from 1999-2000 through 2019-2020.[5]
Colorado corporate income tax rate history
In Colorado, C corporations must pay a tax on the Colorado net income. The following table shows the history of Colorado's corporate income tax rates since the corporate income tax was enacted in 1937. The corporate income tax rate was a flat rate of 4% from 1937 to 1946. The rate was a flat rate of 5% from 1947 to 1980. From 1981 to 1993, the rates were graduated. From 1993 to 1998, the rate was returned to a flat rate of 5%. The flat rate was decreased to 4.75% in 1999 and to 4.63% in 2000.[11]
Colorado corporate income tax revenue
The following table shows the history of Colorado's corporate income tax revenue from 1999-2000 to 2019-2020.[11]
State income tax structures and rates
Colorado statewide ballot measures during even-numbered election years, 2000-2020
A total of 105 measures appeared on the statewide ballot in Colorado during even-numbered election years in the 20-year period between 2000 through 2020. Of the 105 measures, 48 were approved (45.71%) and 57 were defeated (54.29%). From 2000 through 2020, the number of measures on the even-year ballot ranged from three to 14.
Colorado statewide ballot measures during even-numbered election years, 2000-2020 | |||||||||
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Years | Total number | Approved | Percent approved | Defeated | Percent defeated | Annual average | Annual median | Annual minimum | Annual maximum |
2000-2020 | 105 | 48 | 45.71% | 57 | 54.29% | 10 | 10 | 3 | 14 |
Reports and analyses
- Note: The inclusion of a report, white page, or study concerning a ballot measure in this article does not indicate that Ballotpedia agrees with the conclusions of that study or that Ballotpedia necessarily considers the study to have a sound methodology, accurate conclusions, or a neutral basis. To read a full explanation of Ballotpedia's policy on the inclusion of reports and analyses, please click here.
The Common Sense Institute published a report on Proposition 121 in August 2022. The Common Sense Institute describes itself as "a non-partisan research organization dedicated to the protection and promotion of Colorado’s economy" with a mission to "examine the fiscal impacts of policies, initiatives, and proposed laws so that Coloradans are educated and informed on issues impacting their lives [by employing] rigorous research techniques and dynamic modeling to evaluate the potential impact of these measures on the Colorado economy and individual opportunity."[12]
The key findings and conclusion included in the report may be expanded here | ||||||
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Key findings:
Conclusion:
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The full report can be read here.
Path to the ballot
The state process
In Colorado, the number of signatures required to qualify an initiated state statute for the ballot is equal to 5 percent of the total number of votes cast for the office of Colorado secretary of state in the preceding general election. State law provides that petitioners have six months to collect signatures after the ballot language and title are finalized. State statutes require a completed signature petition to be filed three months and three weeks before the election at which the measure would appear on the ballot. The Constitution, however, states that the petition must be filed three months before the election at which the measure would appear. The secretary of state generally lists a date that is three months before the election as the filing deadline.
The requirements to get an initiated state statute certified for the 2022 ballot:
- Signatures: 124,632 valid signatures
- Deadline: August 8, 2022
The secretary of state is responsible for signature verification. Verification is conducted through a review of petitions regarding correct form and then a 5 percent random sampling verification. If the sampling projects between 90 percent and 110 percent of required valid signatures, a full check of all signatures is required. If the sampling projects more than 110 percent of the required signatures, the initiative is certified. If less than 90 percent, the initiative fails.
Details about this initiative
- Jon Caldara and Jerry Sonnenberg filed the initiative on April 9, 2021. Ballot language was provided for the initiative on April 21, 2021.[1]
- The measure was cleared for signature gathering on June 21, 2021, with a signature due date of October 29, 2021.[1]
- Proponents submitted 215,365 signatures on October 29, 2021. On November 18, 2021, the Colorado Secretary of State found through a random-sample method that 148,189 signatures were projected to be valid.[13]
How to cast a vote
- See also: Voting in Colorado
Click "Show" to learn more about voter registration, identification requirements, and poll times in Colorado.
How to cast a vote in Colorado | |||||
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Poll timesIn Colorado, polls are open from 7:00 a.m. to 7:00 p.m. local time for those who choose to vote in person rather than by mail. An individual who is in line at the time polls close must be allowed to vote.[14][15] Registration requirements
In Colorado, an individual can pre-register to vote if they are at least 15 years old. Voters must be at least 18 years old to vote in any election. A voter must be a citizen of the United States and have established residence in Colorado to vote.[16] Colorado voters can register to vote through Election Day. However, in order to automatically receive a absentee/mail-in ballot, a voter must register online, through the mail, at a voter registration agency, or driver's license examination facility at least eight days prior to Election Day. A voter that registers through a voter registration drive must submit their application no later than 22 days before the election to automatically receive an absentee/mail-in ballot. A voter can register online or submit a form in person or by fax, email, or mail.[16][17][18] Automatic registration
Colorado automatically registers eligible individuals to vote through the Department of Motor Vehicles and certain other state agencies. Online registration
Colorado has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration
Colorado allows same-day voter registration for individuals who vote in person. Residency requirementsColorado law requires 22 days of residency in the state before a person may vote.[17] Verification of citizenshipColorado does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment.[19] Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registrationThe site Go Vote Colorado, run by the Colorado Secretary of State office, allows residents to check their voter registration status online. Voter ID requirementsColorado requires voters to present non-photo identification when voting in person. If voting by mail for the first, a voter may also need to return a photocopy of his or her identification with their mail-in ballot. Click here for more information. The following list of accepted forms of identification was current as of October 2025. Click here for the most current information, sourced directly from the Office of the Colorado Secretary of State.
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See also
External links
- Initiative #31 full text
- Colorado Secretary of State: Initiative Filings, Agendas & Results
- Initiatives filed with the Legislative Council Staff
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 Colorado Secretary of State, "Initiative filings," accessed November 18, 2021
- ↑ Independence Institute, "Home," accessed November 12, 2021
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 Cite error: Invalid
<ref>
tag; no text was provided for refs namedfinance
- ↑ Colorado TRACER, "Path 2 Zero," accessed November 1, 2022
- ↑ 5.0 5.1 5.2 5.3 Colorado Legislative Council Staff, "Individual Income Tax," accessed August 14, 2020
- ↑ 6.0 6.1 6.2 6.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Colorado Secretary of State, "Official Voter Information Guide," accessed October 28, 2022
- ↑ Colorado Secretary of State, "Official Voter Information Guide," accessed October 28, 2022
- ↑ Colorado TRACER, "Path 2 Zero," accessed November 1, 2022
- ↑ Colorado Secretary of State TRACER, "Campaign finance committee search," accessed August 4, 2020
- ↑ 11.0 11.1 Colorado Legislative Council Staff, "Corporate Income Tax," accessed August 25, 2020
- ↑ [https://commonsenseinstituteco.org/wp-content/uploads/2022/08/CSI_CO_REPORT_PROP-121_FINAL.pdf Common Sense Institute, "2022 Colorado State Ballot Proposition #121," accessed September 21, 2022]
- ↑ Colorado Secretary of State, "Proposed Initiative #31 (“State Income Tax Rate Reduction”) Qualifies For 2022 General Election Ballot," accessed November 18, 2021
- ↑ Colorado Secretary of State, "Mail-in Ballots FAQs," accessed August 6, 2025
- ↑ LexisNexis, "Colorado Revised Statutes, § 1-7-101," accessed August 6, 2025
- ↑ 16.0 16.1 Colorado Secretary of State, "Voter Registration FAQs," accessed August 6, 2025
- ↑ 17.0 17.1 Colorado Secretary of State, "Colorado Voter Registration Form," accessed August 6, 2025
- ↑ Colorado Secretary of State, "Go Vote Colorado," accessed August 6, 2025
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ Colorado Secretary of State, "Acceptable Forms of Identification," accessed August 6, 2025
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