Colorado voters delivered significant changes in the November 3rd General Election, setting the stage for a new political landscape at both the state and federal levels. The results will have important implications for Colorado’s business community, particularly as employers navigate changes to the state’s tax structure, transportation policy and the regulatory environment.
The election resulted in a Democratic sweep of statewide offices, with Phil Weiser elected as Colorado’s next governor. Jena Griswold was elected attorney general, Jeff Bridges state treasurer and Amanda Gonzalez secretary of state. Democrats also strengthened their position in the Colorado Legislature, flipping at least five Republican-held seats and securing a historic supermajority in both chambers. These results will shape the policy discussions and legislative priorities heading into the 2027 session.
For Colorado businesses, the election presents both opportunities and challenges. Changes to the state’s tax structure and revenue limits raise significant concerns about Colorado’s long-term tax competitiveness and the ability of businesses to operate, invest and create jobs in an increasingly challenging economic environment. The new administration also offers opportunities to work together on regulatory review, permitting and affordability.
The Colorado Chamber of Commerce will continue to serve as the leading voice for employers, working with elected officials from both parties to advance policies that strengthen Colorado’s economy, support job creation and ensure our state remains competitive.
Federal Election Results and Implications for Colorado
The 2026 midterm elections brought substantial changes at the federal level, with Democrats regaining control of both the U.S. House of Representatives and the U.S. Senate. This political shift will usher in divided government for the final two years of President Trump’s term, which will impact both the legislative and regulatory environment in Washington.
In Colorado, U.S. Senator John Hickenlooper secured reelection, while Democrats made major gains in the state’s congressional delegation. What used to be an even 4-4 split for Republicans and Democrats among Colorado’s delegation is likely be 7-1, with Jeff Hurd being the only Republican that won his race last week.
Democrat Manny Rutinel defeated incumbent Republican Gabe Evans in the 8th Congressional District, andDemocratic Socialist Melat Kiros won the 1st Congressional District seat. In the 4th Congressional District, Democrat Eileen Laubacher leads incumbent Republican Lauren Boebert. The race remains uncalled at the time of writing, with results favoring Laubacher. In the 5th Congressional District, Jessica Killin defeated incumbent Jeff Crank to become the first Democrat elected to represent the district in history. In addition to Hurd, Representatives Joe Neguse, Jason Crow, and Brittany Pettersen also secured reelection.
With Democrats controlling Congress and a Republican administration remaining in the White House, major changes to federal law will generally require bipartisan agreement or face a presidential veto. At the same time, Democratic control of Congress will give the party substantially greater influence over the federal policy agenda, including committee leadership, hearings and oversight.
We expect Democrats to focus heavily on issues around affordability, which was a key focus of many of their winning candidates around the nation. Other issues the Chamber is watching at the federal level include tariff and trade policy, aerospace industry developments, health care, housing policy and any regulatory changes.
As a reminder, one of the Colorado Chamber’s most anticipated events that occurs every two years – our Congressional Luncheon – is slated for the fall of 2027. We look forward to hearing from our delegation as their priorities take shape next year.
State Legislative Landscape
Democrats strengthened their control of the Colorado Legislature, securing a historic supermajority in both the House and Senate. Two House races, in Districts 15 and 21, remain uncalled at the time of writing, with Democratic candidates leading. If those leads hold, Democrats will have flipped seven seats in the General Assembly. This represents a significant shift in the legislative landscape and will have important implications for the 2027 legislative session.
With a supermajority, Democratic lawmakers will have greater ability to advance legislation and override gubernatorial vetoes if they remain united. They will also be able to refer constitutional amendments to voters without Republican support. This makes it especially important for the business community to engage early and consistently with legislators and legislative leadership.
Employers should expect renewed proposals to amend the Colorado Labor Peace Act, expand state workplace safety regulation and roll back business tax incentives. Measures that stalled or faced vetoes under Gov. Jared Polis could have a path forward in 2027.
The Chamber’s government affairs team will continue doing what it does best: building relationships across the political spectrum, emphasizing the importance of bipartisan solutions and thoughtful policymaking. Our 2027 legislative agenda is currently in development, and we are crafting both proactive and defensive strategies to navigate this new political environment. Stay tuned for an update from our team before the end of the year!
Regardless of which party holds the majority, our priorities remain consistent: supporting economic growth, improving affordability, strengthening Colorado’s workforce and addressing the regulatory challenges facing employers.
Statewide Ballot Measures: Implications for Business
Several ballot measures will have direct and indirect implications for Colorado employers. The Chamber took positions on three major statewide tax measures, opposing Amendment 87 and Proposition NN while supporting Proposition 136.
Amendment 87 – Graduated Income Tax and Proposition 136
The most significant concern for the business community is Amendment 87, which passed by a narrow margin. The measure replaces Colorado’s current 4.4% flat income tax with a graduated income tax structure, with rates ranging from 3.7% to 8.4%. It also removes the constitutional requirement that all taxable income be taxed at one rate and directs additional revenue toward K-12 education, healthcare and early childhood programs.
Importantly, the measure applies to corporations as well as individuals. Depending on how a business is structured and its taxable income, the new tax structure could result in significantly higher state income tax obligations. This is particularly concerning for small and mid-sized businesses, pass-through entities and companies evaluating where to locate or expand.
The Chamber opposed Amendment 87 because of its potential impact on Colorado’s business climate and its ability to attract investment, create jobs and compete with other states. At a time when Colorado is already facing challenges with business relocations and declining tax competitiveness, increasing the tax burden on employers creates additional uncertainty.
The Chamber also supported Proposition 136, which would have capped individual and corporate income tax rates at the current 4.4% rate. Unfortunately, the measure was unsuccessful. The Chamber supported the initiative because maintaining a predictable and competitive income tax structure is essential to encouraging business investment and economic growth.
With the passage of Amendment 87, the state is projected to receive approximately $2 billion in additional annual revenue. Therefore, it’s the position of the Colorado Chamber of Commerce that the state should not pass any other fees or taxes on the business community in the upcoming legislative sessions.
Proposition NN:
Voters also approved Proposition NN, which raises the state’s TABOR revenue limit by the amount allocated annually to K-12 education. The Chamber opposed the measure, as the change could give lawmakers more room to raise fees under the general fund without triggering additional TABOR refunds, making future fee proposals another important issue for employers to watch.
Ballot Issue 7A – Front Range Passenger Rail:
Voters within the Front Range Passenger Rail District approved Ballot Issue 7A, establishing a 0.333% sales and use tax to fund passenger rail service connecting Fort Collins, Denver, Colorado Springs and Pueblo. The project could improve regional connectivity, expand transportation options and reduce congestion in the I-25 corridor. At the same time, the measure adds to the cumulative tax burden on consumers and businesses within the district. The Colorado Chamber’s Board of Directors chose to remain neutral on the measure.
What This Means for Colorado Businesses
Taken together, the election results create a challenging environment for Colorado employers. The passage of Amendment 87 represents a major change to the state’s tax structure, while the new legislative supermajority could make it easier to advance additional policies affecting employers.
Businesses should pay close attention to several areas as we move into 2027:
- Tax competitiveness and incentives: Changes resulting from Amendment 87 will require close attention, particularly for corporations, pass-through businesses and employers with significant taxable income. Additionally, the Chamber will advocate for more incentives for business now that there is significant additional income headed to the budget.
- Regulatory environment: The Chamber will continue advocating for regulatory transparency, accountability and review to ensure regulations are effective, necessary and do not unnecessarily increase the cost of doing business.
- Affordability and operating costs: Employers continue to face rising costs associated with labor, energy, insurance, health care and government-imposed fees. The Chamber will ensure that these pressures remain central to policy discussions.
- Transportation and infrastructure: The Chamber will support policies that improve transportation and regional connectivity to maintain a strong economy, support employees and ensure businesses can move people and products efficiently.
Conclusion
Colorado’s business community is entering a new chapter. The election results will bring changes to state leadership, the legislative landscape and the policies that shape our economy. While there are significant challenges ahead, Colorado remains a state with tremendous economic potential, a talented workforce and a strong business community.
The Colorado Chamber of Commerce remains committed to ensuring that employers have a meaningful voice in the decisions that affect their businesses, employees and communities. We will continue working with elected officials, policymakers and our members to advance practical solutions that strengthen Colorado’s economy and preserve our state’s ability to compete, innovate and create opportunity.
Thank you for your continued engagement and partnership. The Colorado Chamber will remain a strong advocate for Colorado businesses throughout the 2027 legislative session and beyond.
The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association.