Avalara Taxrates > Blog > Sales Tax News > Coloradans reject state sales tax hike

Coloradans reject state sales tax hike

  • Nov 9, 2018 | Gail Cole

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On November 6, 2018, Coloradans voted against raising the Colorado state sales tax rate from 2.9 to 3.52 percent.

The states sales tax hike proposed in Colorado Proposition 110 would have raised revenue for transportation projects. It was one of two measures seeking funds for transportation: Another measure, Proposition 109, would have allowed the state to borrow $3.5 billion. Had Propositions 109 and 110 both passed, only the one with the most votes would have taken effect. Both failed.

Proposition 109 (also known as the “Fix Our Damn Roads” initiative) would have provided $3.5 billion for state highway projects. Proposition 110 (the “Let’s Go Colorado” initiative) would have generated approximately $767 million in additional sales tax revenue in the first year alone and allowed the state to bond up to $6 billion to pay for state and local transportation projects, including improvements for transit, bicycles, and pedestrians (Colorado Department of Transportation).

With both propositions now dead, the Colorado Legislature will have to come up with other ways to fund needed improvements. There is talk of asking voters to approve $2.3 billion in bonds for transportation projects in November 2019.

New sales tax sourcing rules are set to take effect in Colorado for both in-state and out-of-state sellers on December 1, 2018. That same day, Colorado will start requiring many remote sellers to collect and remit sales tax. Learn more new remote sales tax laws in Colorado and other states.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.