DENVER (KDVR) — TABOR checks won’t make Coloradans wealthy, but they could be a welcome pressure valve.
The Colorado Department of Revenue is slated to begin mailing out the first of this year’s advance TABOR refunds, the largest in state history. Coloradans who filed taxes here this year will get $750 for a single filer household and $1,500 for a household with multiple filers.
According to Metropolitan State University of Denver professor of economics Kishore Kulkarni, lower-income households will more likely spend their refunds on necessities. Higher-income brackets under less inflationary strain will more likely save their money.
TABOR refunds — even in the face of inflation — should knock out sizable chunks of a monthly budget if put mostly to the necessities.
Monthly budgets for groceries, gasoline and housing costs vary widely by state, income levels and household size.
An American household will spend roughly $400 per month on groceries and up to $1,000 for families. A single filer will be able to pay for two months’ worth of groceries with the upcoming TABOR refund. A dual-income household feeding a family will have roughly the same spending power.
A TABOR refund will also pay for several months’ worth of gasoline. Drivers spend roughly $200 a month on gasoline, given average mileage and miles per month. A single filer should get three to four months’ worth of gasoline.
The refunds will take lesser but still substantial bites out of a housing budget.
A single filer — presumably a renter rather than a homeowner — will have about one-third of the Denver area median rent or $2,032 from a TABOR refund. Dual-income rental households will have the majority of their monthly rent. Depending on the terms of the mortgage, dual-income homeowners could expect the same if they live in a median-valued home.