If voters approve Ballot Issue 7A this November, 13 Front Range municipalities would face combined state and local sales taxes at or above 9%, with Wheat Ridge climbing above 10%, according to a report published by the Independence Institute. The analysis, released ahead of Colorado's election, examines how the proposed passenger rail tax—nicknamed the "Coco" measure—would compound existing tax burdens across 31 municipalities. Currently, seven of those cities already pay combined sales taxes at or above 9%, and the measure would add further pressure to residents' cost of living.
The data shows tax increases would vary widely depending on location and other local measures on the ballot. Wheat Ridge would see the steepest jump, rising 2.083 percentage points from 8.00% to 10.083% if all measures pass. Edgewater and Lakewood would each climb 1.583 points, while Arvada and Centennial would increase 1.333 points. Most municipalities face a 0.333 percentage point increase from Issue 7A alone, though Fort Collins and Loveland would rise 0.633 points, Longmont would see increases of 0.663 points, Pueblo would go up 0.750 points, and Sheridan would rise 0.833 points. Cities like Boulder, Denver, and Lafayette—already taxed at 9.295%, 9.15%, and 9.205% respectively—would edge closer to the 10% threshold.
The report warns that shoppers become highly sensitive to sales tax differences when combined rates approach or exceed 10%, though gaps between neighboring cities matter more. According to the Independence Institute, cross-border shopping tends to increase substantially at that level, potentially undercutting revenue expectations for higher-tax municipalities. The authors note that in an election where politicians emphasize "affordability" and "tax fairness," many of those same officials are pushing to raise "one of the most regressive taxes that citizens pay."
The report argues that small businesses in several municipalities are already struggling, and higher sales taxes will be passed directly to consumers—especially those with lower incomes. The Institute warns that the proposed sales tax hikes come on top of local mill levy overrides, debt questions, and major statewide tax measures including Proposition NN, Amendment 87, and Proposition 137. The combination could squeeze household budgets across income levels, with low-income families bearing a disproportionate share of the burden since sales taxes take a larger percentage of their spending.
The report concludes that municipalities concerned about affordability and fiscal stability may face a "reckoning" after the November election. If Issue 7A and the accompanying local measures pass, Front Range cities will need to navigate the tension between funding new infrastructure and maintaining competitive tax environments that don't drive shoppers—and revenue—across city lines. For residents already stretched by Colorado's high cost of living, the choice at the ballot box could mean hundreds of dollars more in annual sales tax on everyday purchases.