DENVER (KDVR) — Coloradans might end up getting more in TABOR refunds than originally estimated, according to new reports released Tuesday.
TABOR, the Taxpayer Bill of Rights, requires that any revenue the state gets above a certain cap be refunded to taxpayers.
Because the TABOR refund amount is estimated to be higher than previously thought, your return will also be higher than expected.
Different tax revenue projections
There were two different reports released Tuesday, and both had slightly different estimates. However, both included a TABOR refund amount higher than previous estimates.
Those two reports were from the Governor’s Office of State Planning and Budgeting and the Legislative Council Staff, the latter of which is a nonpartisan research and support service agency for the legislative body.
In the new OSPB projection, there will be a surplus of around $3.5 billion, which is $869.3 million higher than they previously thought.
The new LCS projection is above $3.3 billion, around $600 million more than it predicted in March.
How much more might you get?
The actual amount you might see in your TABOR refund next year relies entirely on what voters decide in November.
Proposition HH, which is designed to curb rising property taxes, includes a part that would allow TABOR refunds to be given equally among all taxpayers.
The law for equal TABOR refunds is technically already on the books, having been passed and signed by Gov. Jared Polis. However, it is entirely contingent on Proposition HH passing.
Otherwise, the refunds will be decided based on income: The more you make, the more you pay, and therefore the higher your refund will be.
OSPB estimated that, if voters approve the proposition, people could expect around $873, up from the previous estimate of $661.
The Governor’s Office of State Planning and Budget report did not have specifics on what people could expect if voters reject Proposition HH and TABOR refunds default to the normal six-tier system.
LCS, however, estimated that taxpayers would get around $854 if Proposition HH passes.
If Proposition HH doesn’t pass, the lowest-earning Coloradans — those earning less than $50,000 — would get an estimated $587, while the highest-earners would get $1,854.
All of these amounts are what single filers would receive — if taxes are filed jointly, the amount is doubled.
Could these amounts change?
All of these amounts are based on what the state receives in the 2022-23 fiscal year, which for Colorado is between July 1, 2022, and June 30, 2023.
Once the fiscal year ends, it will take time to determine exactly how much goes to TABOR refunds. The specific amount going to refunds should be known later in the year, around September.
People will receive their TABOR refund when they file their tax return in April 2024.