Colorado TABOR under attack, a unique constitutional limit on state revenue, faces renewed threats from Democrat lawmakers aiming to undo its restraints. Despite voter support, state legislators have passed dozens of bills sidestepping TABOR’s restrictions, raising alarm among fiscal watchdogs and conservatives.
Colorado is the only state with a cap on how much revenue the government can keep, with any excess returned to taxpayers. Passed in 1992, TABOR requires voter approval for tax hikes and limits state spending to inflation plus population growth. Proponents credit it with fueling job creation and saving the state over $9 billion since 2021.
Ross Kaminsky, a fellow at the Common Sense Institute, authored a report warning of efforts by Democrat lawmakers to undermine TABOR through fee increases and legislative workarounds. According to Kaminsky, Democrats view taxpayer limits as an obstacle to expanding government programs. “They object to anything that limits the amount of money that they can take from taxpayers,” he said.
The report found Colorado’s effective income tax rate has surged to nearly 8% when accounting for the rise in state-imposed fees. Since TABOR’s passage, fee-based revenue has exploded by 3,000%. In 2023 alone, fees raised $23.3 billion—money not subject to voter approval.
Public resistance remains strong. In 2023, voters overwhelmingly rejected Proposition HH, which would have weakened TABOR by reallocating refunds. Only 39% supported the measure. Despite the defeat, Democrats in the state legislature have continued pushing for ways to bypass or erode the law.
Lawmakers like Rep. Yara Zokaie and Sen. Michael Bennet have openly criticized TABOR, arguing it restricts funding for essential services. Bennet, a gubernatorial frontrunner, recently said the law “isn’t serving Colorado well.” Meanwhile, Rep. Zokaie has declared herself a “#TABORhater” on social media.
Republicans remain committed to defending TABOR. Rep. Ty Winter emphasized that it gives power to taxpayers, not politicians. “TABOR keeps the legislature in check by requiring voter approval for tax increases,” he said. “It’s your money, and you deserve a say in how it’s spent.”
Kaminsky warned that dismantling TABOR threatens Colorado’s long-term fiscal health. “They find ways to spend money on things, getting around the intent of TABOR,” he said. “Colorado is now not as fiscally admirable as it has been in the past.”
