COLORADO – The Associated Press has projected that Colorado voters have rejected Proposition 110, which would have increased the state sales and use tax rate by 0.62% to pay for highway, road, and transit projects throughout the state.
Proposition 110 – Road Tax
1) Colorado’s highways are deteriorating, and the cost of improvements continues to increase. The state
needs to invest immediately in its infrastructure and cannot afford to expand and modernize its
transportation system without a new revenue source. Colorado needs a modern transportation system
that includes road, bus, bike, pedestrian, and rail options to address its growing population. This
measure creates a flexible statewide transportation solution, and it lets local communities identify their
own transportation projects and prioritize their most urgent needs.
2) Proposition 110 creates a sustainable source of funding for Colorado’s transportation needs. Colorado’s
highway costs outpace collections from the gas tax. This measure offers a way for the state to increase
transportation funding and repay bonds. This new, dedicated revenue for transportation will allow the
state to continue to meet its obligations to fund education, health programs, and public safety while also
investing heavily in Colorado’s roads.
1) Proposition 110 raises taxes for a fundamental government service that should be fully funded through
the state budget. Any shortfall in transportation funding is a result of prioritizing state spending in other
areas of government. The state can fund roads with the money it collects in taxes, rather than resorting
to expensive borrowing. Additionally, this measure dedicates too much revenue to multimodal
transportation, money that should be used exclusively for road repair and improvement. The majority of
the workforce use their personal vehicles to commute daily and depend on quality road and highway
2) Sales taxes, which are already high, provide a poor method of funding transportation. The total sales tax
rate exceeds 10 percent in some areas of Colorado. Raising the state sales tax disproportionately affects
low-income individuals because they must spend a larger share of their budget buying taxable
Estimate of Fiscal Impact
Proposition 110 makes changes to transportation finance over 20 years. Its effects on state and local
government revenue and expenditures are summarized below.
State revenue. This measure increases sales and use tax revenue by $366.0 million (half-year impact) in
state budget year 2018-19, and by $766.7 million in state budget year 2019-20. The sales and use tax revenue
increase continues for 20 years. In addition, the measure authorizes CDOT to sell bonds, increasing revenue by
up to $6.0 billion over three years.
State expenditures. This measure will increase expenditures equal to the amount of revenue described
above for construction and maintenance of transportation projects, and debt service. The measure commits up to
$9.4 billion to the repayment of debt.
Local government revenue and expenditures. The measure increases state distributions to local
governments for transportation projects by $146.4 million (half-year impact) in state budget year 2018-19, and by
$306.7 million in state budget year 2019-20. These increases continue for 20 years.