2026 Voter Guide: This article is part of Johnstown Republic’s guide to the Nov. 3 ballot.
Colorado voters will decide Proposition 137, a citizen-initiated measure that would direct existing state sales-tax revenue from sporting-goods purchases and rentals toward conservation, wildfire mitigation, watershed restoration and outdoor-recreation programs.
The measure would not increase the sales-tax rate or the price of sporting goods. Instead, it would redirect an estimated $175 million in existing state revenue in its first full year and exempt that money from Colorado’s TABOR revenue limit. Proposition 137 requires a simple majority to pass, according to the official 2026 Colorado Blue Book.
What would Proposition 137 do?
Proposition 137 would designate a portion of the state sales-tax revenue collected from sporting goods and equipment as dedicated conservation and wildfire funding.
The measure covers most sporting-goods categories, including bicycles, golf equipment, hunting and fishing equipment, camping equipment, boats, recreational vehicles and campers. It also includes rentals of recreational, sports and fitness equipment.
For fiscal year 2027-28, the state estimates approximately $175 million would be transferred from the state General Fund to a new conservation fund.
The money would be divided as follows:
- 47.5% to Great Outdoors Colorado, or GOCO;
- 47.5% to wildfire mitigation, forest management and watershed programs;
- 2.5% to the Outdoor Recreation Economic Development Cash Fund; and
- 2.5% to the Outdoor Equity Fund.
The amount transferred could be reduced in some years if exempting the sporting-goods revenue from TABOR would reduce certain state income-tax credits available to families. In that situation, the conservation transfer would be reduced to preserve those credits.
How would the money be used?
Based on the projected $175 million transfer in 2027-28, approximately:
- $83.1 million would go to GOCO for conservation, parks, trails, open space, wildlife and related grants;
- $83.1 million would support wildfire risk mitigation, forest management and watershed projects; and
- About $8.7 million would support outdoor recreation and outdoor-equity programs.
The wildfire and water funding would support programs such as forest restoration, fuels reduction, wildfire-mitigation capacity and watershed projects.
The fiscal analysis also includes a one-time $10 million transfer in 2027-28 to a fund that pays eligible damages associated with prescribed fires.
The measure requires the new money to supplement rather than replace existing conservation and wildfire funding.
What does a YES vote mean?
A YES vote would dedicate existing state sales-tax revenue from sporting goods to the conservation, wildfire, water and outdoor-recreation programs specified in the measure.
The designated revenue would also be exempt from Colorado’s TABOR revenue limit.
What does a NO vote mean?
A NO vote would leave current law in place.
Sales-tax revenue from sporting goods would remain part of the state’s general budget and subject to the TABOR limit. The General Assembly could continue deciding how to spend that revenue, or it could be returned to taxpayers through TABOR refunds when required.
What would it cost taxpayers?
Proposition 137 would not raise tax rates or increase the amount of sales tax charged on sporting goods.
Its direct taxpayer impact would come from removing the dedicated revenue from the TABOR limit.
The Legislative Council Staff fiscal analysis estimates $175 million would be transferred in fiscal year 2027-28 and about $180.2 million in 2028-29.
Under current forecasts, Proposition 137 is expected to reduce TABOR refunds by approximately $175 million in 2027-28.
In years when state revenue remains below the TABOR limit, the measure would not reduce TABOR refunds. The dedicated revenue would still, however, no longer be available for other General Fund priorities.
The fiscal statement separately estimates $73.7 million in state expenditures in 2027-28 and $131.8 million in 2028-29. Those figures are lower than the total amount transferred because money sent to GOCO is accounted for separately to avoid counting the same spending twice.
Arguments for and against
Supporters argue that Proposition 137 would provide a stable source of funding for wildfire prevention, forest restoration, watershed protection, conservation and outdoor recreation without increasing tax rates. They also argue that directing revenue associated with sporting goods creates a connection between outdoor recreation and investment in the lands and resources that support those activities.
Opponents argue that exempting the revenue from TABOR could reduce taxpayer refunds and remove money from other state priorities such as education and health care. They also contend that lawmakers should retain flexibility to decide how state revenue is spent rather than permanently dedicating it to particular programs.
Those arguments are summarized from the official Colorado Blue Book analysis.
What does this mean for Johnstown?
Proposition 137 would apply statewide, including to taxpayers and conservation programs serving northern Colorado.
The measure does not reserve funding specifically for Johnstown. However, local governments and regional organizations could potentially receive funding through GOCO grants, wildfire-mitigation programs, watershed projects and other programs supported by the measure.
For Johnstown taxpayers, the most direct potential effect would be a reduction in TABOR refunds in years when state revenue exceeds the constitutional limit.
What if Proposition NN also passes?
Colorado voters will also consider Proposition NN, which would allow the state to retain additional revenue above the current TABOR limit for education and programs serving children.
Because Proposition 137 would remove sporting-goods sales-tax revenue from the amount counted toward the TABOR limit, the Blue Book explains that it could reduce or potentially eliminate the amount of revenue actually retained and spent under Proposition NN if both measures pass.
Official information
The complete ballot analysis, fiscal-impact statement and full text of Proposition 137 are available on the Colorado General Assembly’s official Proposition 137 page.