Colorado voters will soon be tasked with choosing whether or not the state will see a raise in sales tax for transportation on the November ballot.
The Denver Metro Chamber of Commerce’s sales tax ballot proposals could potentially generate as much as $5 billion for transportation projects, according to the Denver Post. The proposals could possibly raise the 2.9 percent sales tax rate by anywhere from a half-cent to a full penny per dollar.
Currently, it has been estimated that an overhaul of the state’s road would cost $9 billion over the next decade. Around $1 billion is expected in revenue between the current and coming fiscal years because of the improving economy and a windfall from federal tax law changes.
The exact proposal for November’s ballot has not been chosen just yet. Three of the proposals would raise sales tax by a half-cent and 1 cent per dollar which would generate between $2.5 billion and $5 billion. The fourth proposal would raise taxes by a half-cent and require the state to add $150 million of existing revenues annually.
According to the Denver Post, transportation funding has been a top priority amongst most of the state’s interest groups. While Gov. John Hickenlooper has not commented on the four proposals, lawmakers who supported a bipartisan tax hike last year are questioning the need.
“Our members agree Transportation has passed that critical point,” said NFIB/Colorado State Director Tony Gagliardi. “As always, NFIB members will make their voices heard through the membership survey.”
