PolicyEngine

Colorado Proposition NN

Raise the state revenue limit and keep the surplus · November 3, 2026 · Tax year 2027

What Proposition NN would do

Colorado Proposition NN would permanently raise the state’s TABOR revenue limit by its K-12 education spending, letting the state keep revenue it would otherwise refund; PolicyEngine scores the sales tax refunds projected for tax years 2027 and 2028.

What changes if it passes

  • Starts with the 2026-27 budget year and has no end date.
  • Spends the retained revenue first on property tax exemption reimbursements to local governments, as current law already does, and deposits the rest in a new Children’s Account.
  • For ten years, directs the Children’s Account to K-12 education and to programs for children.
  • Requires an annual independent audit of how the money is spent.

Estimates at a glance

Sales tax refunds not paid, 2027

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PolicyEngine estimate

Official estimate

$259.8M

Legislative Council Staff, September 2026 forecast, FY 2026-27 surplus (tax year 2027 refunds)

Returns receiving a refund under current law

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Returns receiving the six-tier refund

Current law and if it passes

Six-tier sales tax refund per person, tax year 2027
GroupCurrent lawIf it passes
Up to $57,000$43$0
$57,001 to $117,000$58$0
$117,001 to $187,000$67$0
$187,001 to $265,000$79$0
$265,001 to $349,000$85$0
Over $349,000$137$0
Six-tier sales tax refund per person, tax year 2028
GroupCurrent lawIf it passes
Up to $59,000$47$0
$59,001 to $120,000$62$0
$120,001 to $192,000$71$0
$192,001 to $272,000$85$0
$272,001 to $358,000$91$0
Over $358,000$147$0

Who is affected

Under current law, Colorado filers receive the six-tier sales tax refund on their income tax returns; if Proposition NN passes, those refunds are not paid for tax years 2027 and 2028.

Key facts

Vote needed
A majority vote.
Takes effect
Budget years beginning July 1, 2026, with no end date.
Years modeled
Tax years 2027 and 2028