Opposition mounts as Colorado lawmakers hunt for cash

State of play: Ahead of the late-August special session, state lawmakers are considering legislation to decouple from federal tax law and refuse the tax cuts in President Trump's "big, beautiful bill."

• As Axios Denver first reported, state lawmakers started this effort earlier this year when they approved a little-noticed provision to require residents to pay state income taxes on overtime, even though Trump's bill made it exempt. It amounts to $180 million to $290 million in additional revenue for 2026.

The latest: Now, lawmakers are looking at requiring state income taxes on tips, which are exempt at the federal level, as well as other penny-pinching options.

Yes, but: Conservatives are looking to block the moves.

• In July, conservative group Advance Colorado filed a lawsuit against the state-level tax on overtime, saying it violates the Taxpayer's Bill of Rights because it amounts to a tax hike without voter approval.
• The same organization is pursuing a 2026 ballot measure to repeal the Colorado law that put the tax on overtime.

What they're saying: "Hardworking families in Colorado shouldn't be burdened with an excessive tax simply because politicians can't balance their budget and are looking for additional sources of revenue," said Advance Colorado president Michael Fields in a statement.