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TABOR: The Colorado Con #9

Counting the Hidden Costs of Colorado’s Tax Code

TABOR might promise a government on a diet and fatter refund checks, but Colorado’s wallet feels the pinch. It’s one of the tightest tax laws in the country, quietly deciding what our state can and can’t afford. If this makes you scratch your head or mutter, “Wait, that’s fishy…” you’re in good company.

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May 16, 2025

Did you know that since TABOR passed in 1992…

…water conservation and infrastructure have languished?

Given the recent emergency water restrictions in Manitou Springs, it is especially important to understand how TABOR impacts water conservation and quality efforts, both for households and long-term sustainability.

Despite hard-won successes like the Colorado Water Plan, which uses data to analyze water risks through 2050 and supports projects in each of the state’s major river basins, Colorado continues to struggle with climate change, drought, and over allocated water resources, compounded by its booming population and aging infrastructure. TABOR’s constraints on state revenue only exacerbate these challenges.

Cost to families: Aging systems and increased vulnerabilities mean that Colorado families deal with risks like leaks, breaks, and contamination, especially through corroded pipelines and deteriorating treatment facilities. According to the 2025 American Infrastructure Report Card, Colorado ranked C-minus in drinking water and wastewater. This also means that Coloradans are at increased risk of contamination by bacteria, heavy metals like lead, and other pollutants, especially in underfunded communities.

Long-term costs: This underinvestment means that staving off future water shortages, especially as the state continues to grow, could be a significant problem. The Colorado Water Conservation Board estimates that implementing the Colorado Water Plan through 2050 will cost approximately $20 billion altogether, and current funding will not close the gap. Between now and 2050, the state faces challenges in securing the necessary funding, potentially leading to deferred projects and increased costs over time.

This underinvestment not only jeopardizes the state’s water security but also risks higher future expenses for both the government and its residents. With additional funding from the federal government under threat, the future of water security in Colorado, including ensuring potable, safe water for families, is at risk.

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