Colorado Tax Amendment Faced Legal Challenge

A court challenge seeks to remove a proposed tax shift from the November ballot that would impact high earners.

Updated on Sept. 24, 2026 in Taxes

Bold flat-color editorial illustration of stacked geometric stone slabs representing state fiscal structure. — Opponents have filed a legal challenge against Colorado's Amendment 87, a tax reform proposal that would establish a graduated income tax for high earners. AI Illustration. Upload story photo >

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Opponents have filed a legal challenge against the Colorado Secretary of State to block Amendment 87 from the November 2026 ballot. The measure proposes replacing the current flat income tax with a graduated system for those earning over $500,000 annually.

Why it matters

The outcome will determine if voters decide on a plan to generate over $2 billion for K-12 education, healthcare, and childcare by shifting the tax burden away from 97 percent of residents. This proposal seeks to address recent fiscal shortfalls following state budget cuts of roughly $2 billion.

Amendment 87 targets the 3 percent of individuals and 5 percent of corporations earning over $500,000, while projected to provide tax cuts for 97 percent of taxpayers. Supporters estimate the shift will generate $2 billion to help offset $2 billion in recent state budget cuts.

The players

Colorado Secretary of State

The state office responsible for managing election integrity, voter registration, and certifying the eligibility of ballot initiatives.

The details

Amendment 87 would transition Colorado from its current flat income tax structure to a graduated model that applies only to top earners. Revenues raised would be legally earmarked exclusively for K-12 education, healthcare, and childcare programs. Challengers are currently working through the courts to invalidate the measure based on alleged failures to meet administrative requirements for ballot access.

1992: Colorado voters adopted the Taxpayer's Bill of Rights.
Past two years: State budget cuts totaled approximately $2 billion.
September 17, 2026: The legal challenge against the Secretary of State was publicized.
November 2026: The scheduled date for the state election.

Money Landscape

This legal battle highlights ongoing tensions regarding the state's fiscal structure as established by the Taxpayer's Bill of Rights. The proposed amendment challenges the long-standing flat tax system to address budget constraints.

Most Colorado households may see lower income taxes if the measure reaches the ballot and passes, though high-earners would face a new graduated structure. You should consult a tax professional to understand how potential state-level changes might affect your total tax liability.

The takeaway

The legal challenge creates uncertainty about whether voters will have the opportunity to weigh in on this tax shift in November. Taxpayers should monitor official updates from the state and consider reviewing their projected 2027 tax planning with a qualified professional.