Proposition 121 in Colorado: A 1-minute voter guide - Axios DenverLog InLog InAxios Denver is an Axios company.

1-minute voter guide Proposition 121 in Colorado

Illustration: Annelise Capossela/Axios Colorado's income tax would drop again if voters approve in November's election — lowering the rate to 4.4% Be smart: The current personal and income tax rate is 4.55%. Why it matters: If OK'd, Proposition 115 would be the second statewide state income tax reduction two elections, and a 5% decline since 2020. Income tax is the leading source of discretionary spending in the $12 billion annual state general fund, most of which goes toward health care, education and corrections. Flash back: Just a year ago, Colorado voters approved Proposition 116 to decrease the income tax from 4.63% to 4.55%. By the numbers: This new ballot measure, initiated by fiscal conservatives who want to reduce the size of government, is estimated to reduce state tax revenue by $637.5 million in the current budget year and $412.6 million in the 2023-24 fiscal year, .The average tax cut is $119 for individuals, but varies by income. Those making $50,000 -$69,000 would save $63 a year, but those making $500,000-$1 million would hold onto $725 annually. What they're saying: Right now, the state's tax revenue exceeds the limits in the Taxpayer's Bill of Rights, so income tax cuts and . And any cuts, for now, wouldn't reduce the amount state lawmakers can spend in the budget process. The other side: Tax refunds are not a given in future years, particularly with . Opponents also note that 75% of Colorado residents will receive a $63 benefit or less, while wealthier individuals will save more. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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