Colorado Business Groups Push 2026 Ballot Measure to Redirect All Vehicle Taxes to Roads

A coalition of Colorado construction and business groups is advancing a ballot measure for the 2026 election that would constitutionally require the state to spend all revenue from motor vehicle and fuel taxes exclusively on road and bridge projects. The proposal, known as Initiative 175 or “Restore Our Roads,” aims to create a funding lockbox that would prevent state legislators from diverting these funds to other priorities. The measure, which supporters hope to place before voters in November 2026, would redirect a wide swath of existing state revenue. If passed, it would mandate that all state sales, use, and excise taxes or fees on motor vehicles and fuel be dedicated to road transportation. This includes revenue from ride-share fees and retail delivery fees. The initiative would also allocate two-thirds of all state sales and use taxes collected on vehicle parts, equipment, and accessories to the same fund. The designated uses for this money would be building and repairing roads and bridges, improving driver safety, covering associated planning costs, and funding the Colorado State Patrol. Proponents argue the initiative is a necessary response to years of legislative underfunding that has left the state’s infrastructure in a critical state of disrepair. Tony Milo, whose organization represents roadway construction companies, described the situation as a “breaking point,” stating that the General Assembly has not adequately addressed the issue. He noted that his members are concerned not only for their own companies but for the broader business climate and quality of life in Colorado. This sentiment is shared by other business leaders. Loren Furman, president and CEO of the Colorado Chamber of Commerce, has voiced concern that the lack of transportation funding is hindering the state’s competitiveness. “In order for Colorado to stay competitive, we need funding for roads and bridges infrastructure that meets the needs of our industries that operate statewide,” Furman said in a statement. The chamber has indicated it is waiting for the final ballot language from the state’s Title Board before taking an official position. Advocates for the measure emphasize that it would not raise taxes but would instead ensure that money generated by road users is spent on roads. According to the campaign, the initiative would provide sustainable, locked-in funding and ensure every region receives its fair share for local priorities. The financial impact could be substantial. While the Colorado Department of Transportation’s current budget for asset management is around $1 billion, supporters estimate the amount specifically going to roads is closer to $800 million. Initiative 175 could nearly double that total. However, the proposal faces significant opposition from environmental and public transit advocates. They warn that the measure would gut funding for the state’s other transportation priorities, including public transit systems, electric vehicle incentives, and programs aimed at mitigating the environmental impact of cars. This comes at a time when the state legislature recently cut nearly $114 million in transportation funding to address a budget shortfall. Matt Frommer, a policy manager at the Southwest Energy Efficiency Project, called the initiative a “move in the wrong direction.” He argued that it would undermine recent state efforts to encourage alternative modes of travel and would be particularly damaging as the federal government rolls back some support for electric vehicles. Opponents contend that a modern transportation system requires a multi-modal approach, not a singular focus on roads, especially in urban areas. The debate highlights a fundamental disagreement over Colorado’s transportation future. A letter from proponents argued, “We cannot mass-transit our way out of this hole. The state’s backbone is made of roads, bridges and highways.” They claim that while transit systems may work in some urban centers, they come at the expense of critical investments in rural and smaller municipalities. For the measure to reach the 2026 ballot, petitioners must collect a required number of valid signatures from registered voters across the state. State law provides a six-month window for signature gathering after the ballot language and title are finalized by the Title Board. The deadline for submission is typically three months before the election. While improved infrastructure is a clear benefit for businesses that rely on logistics and transportation, this proposed reallocation of tax revenue introduces significant uncertainty. The measure effectively re-engineers the state's economic priorities through the tax code, creating potential disruption for companies that have aligned their business models with state incentives for green energy or public transit. It's a stark reminder that tax policy is not just about rates; it's about the strategic direction a state chooses to take, which can directly impact market opportunities. Our experience shows that sudden shifts in how dedicated revenue streams are used can have ripple effects far beyond the immediate industry. We advise clients that understanding the secondary impacts of such legislative changes is crucial for long-term financial health. As experts in tax preparation and compliance, we help businesses analyze how these state-level fiscal policy changes affect their specific operations and strategic plans. To assess how your business could be impacted by evolving tax landscapes, contact C&S Finance Group LLC at csfinancegroup.com for strategic guidance. The immediate next step for Initiative 175 rests with the state’s Title Board, which will finalize the official ballot language. Following that, the success of the signature-gathering campaign will determine whether Colorado voters will decide on this fundamental shift in transportation funding in 2026. The outcome will have lasting consequences for the state’s infrastructure and the diverse businesses that rely on it.