Proponents presented Proposed Initiative 64 April 4, seeking staged reductions in Colorado’s individual and corporate income tax rates: from 4.4% to 4.35% in the 2027 tax year, and to 4.2% in the 2028 tax year and thereafter. The measure also includes language that any reduction in state revenue attributed to the first full fiscal year following the rate reductions would reduce funding for the Department of Revenue and the Department of Personnel.

Legislative reviewers asked several technical questions about the scope and duration of the department-funding reduction. Staff noted the "first full fiscal year following 01/01/2027" runs from July 1, 2027, to June 30, 2028, and asked whether proponents intend the funding reduction to be limited to that fiscal year or to continue thereafter. Proponents said their intent was to comply with title-board drafting constraints and not to lock in an indefinite funding cut; they indicated the language is intended for the single fiscal year but that the legislature retains appropriation authority.

Staff also asked by what measure funding to the two departments should be reduced (e.g., proportionally to the revenue loss), and the proponents replied they expect the legislature to implement any reduction per the statute. Reviewers recommended replacing organizational references to "section 1" and "section 2" (which are internal to the initiative) with language that ties reductions to the statutory section where the rate change is enacted; proponents agreed to make that change.

The hearing closed after technical comments; the review is advisory and focused on clarifying applicability and drafting to avoid unintended sustained funding impacts.