DENVER — It’s official. Coloradans will be giving less to Colorado state government in 2020.
Income tax rates will be decreasing from a flat 4.63% to 4.5%.
The decrease was mandated by the Colorado State Constitution and the Taxpayer Bills of Rights (TABOR) which limits how much government can grow each year.
Passed in 1992, this is the first year TABOR has triggered cuts. As opposed to sending checks to taxpayers, income tax rates will be cut instead.
Our Colorado income tax rate is coming down from 4.64% to 4.5% for 2020!https://t.co/hgeai2ItXr
— Jared Polis (@jaredpolis) December 31, 2019
“Happily, this year every Coloradan will receive real tax relief as of Jan. 1: Our Colorado income tax rate is going down to a historic low of 4.5% for 2020,” Polis wrote in his oped.
Ironically, Polis campaigned against refunds and tax cuts triggered by TABOR like this earlier this year. Polis was a supporter of Proposition CC, which would have stopped TABOR refunds in future years. CC failed at the ballot box.
“This is exactly what TABOR was created for,” Michael Fields, a TABOR supporter with Colorado Rising State Action, said.
Of course the tax cut does impact the State Budget. The tax cut will return around $428 million to taxpayers, money that lawmakers were hoping to use for other projects such as transportation and education.