This election in Colorado is following similar patterns of tax and spend. I wish one of these elections we could vote to reduce taxes and spending! Did voters in Denver approve 1 billion in new spending? What ski town proposed a 17% short term rental tax? What other big election results do you need to know about that will impact real estate?
State level ballot initiatives ( both passed)
There are two statewide ballot initiatives focusing on providing free lunches to all kids. The premise behind both is to make wealthy taxpayers pick up the tab for free lunches.
- Proposition LL: Without raising taxes, may the state keep and spend all revenue generated by the 2022 voter- approved state tax deduction limits on individuals with incomes of $300,000 or more and maintain these deduction limits in order to continue funding the healthy school meals for all program, which pays for public schools to offer free breakfast and lunch to all students in kindergarten through twelfth grade. This is very misleading as technically they aren’t raising taxes, they are just keeping more money that would have been refunded due to the Taxpayer Bill of Rights, so this is a tax increase as you are getting less money back
- Proposition MM: SHALL STATE TAXES BE INCREASED BY $95 MILLION ANNUALLY BY A CHANGE TO THE COLORADO REVISED STATUTES TO SUPPORT ACCESS TO HEALTHY FOOD FOR COLORADO KIDS AND FAMILIES, INCLUDING THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM, AND, IN CONNECTION THEREWITH, INCREASING STATE TAXABLE INCOME ONLY FOR INDIVIDUALS WHO HAVE A FEDERAL TAXABLE INCOME OF $300,000 OR MORE BY LIMITING ITEMIZED OR STANDARD STATE INCOME TAX DEDUCTIONS TO $1,000 FOR SINGLE TAX RETURN FILERS AND $2,000 FOR JOINT TAX RETURN FILERS FOR THE PURPOSES OF FULLY FUNDING THE HEALTHY SCHOOL MEALS FOR ALL PROGRAM. This is also a tax increase on the wealthy.
These measures unfortunately are the beginning of a worrying trend in Colorado. Regardless of your take on healthy meals, this is a bad precedent to continue to focus on high income earners to fund every social program. Eventually these high income earners move and go to other states that are more tax friendly leaving big problems for the state of Colorado; we have seen this play out in California and New York.
Denver ballot initiatives (all passed)
Vibrant Denver bond would provide one billion dollars for shelters, roads, libraries, the kitchen sink and everything in between. The Bond is covered in Measures 2A-2E which asks Denver voters to approve a bond package of almost 1 billion. Each measure starts the same, without increasing taxes :< I hope everyone understands that someone is going to pay for the 1 billion in bonds as Denver uses other revenue to fund these projects. At the end of the day taxpayers are on the hook for 1 billion and if tax revenues fall from other areas like a decrease in property taxes due to declining values you can bet that Denver will have to raise taxes to cover the shortfall as a result of 1 billion more owed to creditors.
Key Colorado ski/mountain town election results
- Eagle County nightly rental taxes (PASSED): Ballot measure 1A: SHALL EAGLE COUNTY LODGING TAXES BE INCREASED BY $4,500,000 ANNUALLY COMMENCING ON JANUARY 1, 2026, AND BY WHATEVER ADDITIONAL AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY INCREASING THE LODGING TAX RATE FROM TWO PERCENT (2%) TO FOUR PERCENT (4%), SUCH TAX TO BE LEVIED ON THE RENTAL FEE, PRICE, OR OTHER CONSIDERATION PAID OR CHARGED FOR THE LEASING, RENTAL,SALE OR FURNISHING OF A ROOM OR ACCOMMODATION FOR A SHORT- TERM PERIOD OF LESS THAN THIRTY (30) CONSECUTIVE DAYS
- City of Vail (FAILED BY 30 VOTES): Ballot measure 2A: SHALL TOWN OF VAIL TAXES BE INCREASED $8,700,000 IN THE FIRST FULL FISCAL YEAR AND BY WHATEVER AMOUNTS ARE RAISED ANNUALLY THEREAFTER, BY THE LEVY OF A NEW TAX ON SHORT-TERM RENTAL ACCOMMODATIONS AT A RATE OF SIX PERCENT (6%) OF THE TOTAL CONSIDERATION PAID FOR SUCH ACCOMMODATIONS, TO TAKE EFFECT ON JANUARY 1, 2026. Note this would increase the accommodation tax to a total of 16.8% (currently the rate is 10.8%).
- On a side note, Airbnb had bankrolled the campaign to defeat this ballot initiative; I was very surprised that this initiative failed at the ballot box, but with how close it was, look for it to come back to life in an upcoming election.
Littleton housing density rollback (passed)
Littleton 3A is an interesting initiative. Littleton voters approved a ballot measure enshrining single-family zoning in the city’s charter, effectively blocking local officials from allowing denser forms of housing across most of the southern Denver suburb. The new amend the city charter, which would take away the council’s ability to change the single-family zoning code without voter approval.
The amendment would put the city out of compliance with state law, rolling back a local ordinance allowing accessory dwelling units, or granny flats, in single-family neighborhoods. It would also make it difficult for Littleton to meet the state’s new requirements for housing density near transit.
Steamboat council makeup
I thought the Steamboat election was interesting as two members of council were replaced with new members that were prioritizing locals over growth and in particular they both appear to be very skeptical of the current council direction especially on affordable housing.
2025 election is a rinse and repeat cycle in Colorado
Unfortunately, Colorado continues to elect politicians that are on the constant cycle of tax and then spend more than you tax so that you have to ask for even more taxes! This cycle is especially true in Denver and there is no end until taxes get so high that voters finally say enough is enough. The mountain towns are not immune continuing to spend more than they take in then designating a crisis in order to tax even further.
This rinse and repeat cycle of tax and spend is not sustainable in Colorado or anywhere else. At some point high net worth individuals and companies decide to move to greener pastures that have less taxes and similar quality of life like Utah, Wyoming, or Montana. We are already seeing this trend in Denver with businesses relocating and it will likely spread to other parts of the state making the spend/tax cycle even worse. Sadly, I see no indication of this spend/tax cycle ending until something big breaks in a city’s budget.
Additional Reading/Resources:
- https://www.coloradosos.gov/pubs/elections/Initiatives/ballot/contacts/2025.html
- https://www.kunc.org/news/2025-10-25/vails-proposed-short-term-rental-tax-draws-big-money-opposition-led-by-airbnbs-30-000-contribution
- https://www.eaglecounty.us/departments___services/clerk___recorder/elections___voter_information/coordinated_election,_nov_4,_2025.php#collapse60170b8
- https://coloradosun.com/2025/11/04/littleton-ballot-question-3a-results/
- https://coloradohardmoney.com/what-does-colorados-debt-mean-for-real-estate-prices/
- https://coloradohardmoney.com/are-politics-leading-to-lower-denver-house-prices/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. He is the owner of Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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