DENVER (KDVR) — Colorado voters have voted in favor of lowering the state tax rate, according to the Associated Press.
Proposition 121 will lower Colorado’s income tax rate from 4.55% to 4.40% beginning in the 2022 tax year.
According to Ballotpedia, the last time voters chose to lower the state income tax rate was just two years ago with Proposition 116, which changed the rate from 4.63% to 4.55%. The measure passed with approximately 58% of the vote.
The tax rate prior to 1987 was dependent on income — higher earners paid more taxes and lower earners paid less. But that was voted out with a flat rate of 5% that went into effect from 1987 until it was lowered in 1999 to 4.75%. It was again reduced in 2000 to 4.63%, where it remained until 2020.