When Colorado brings in more money than it is allowed to spend, it is required to refund that money back to taxpayers in the state under the Taxpayer Bill of Rights, but a new law tweaked that allocation to make it even across income brackets.
Gov. Jared Polis signed a bill that tweaks this year’s TABOR refund, which creates an even amount for every taxpayer instead of a proportional refund and sends that refund out earlier.
Because the Colorado Cash Back bill required the Department of Revenue to send the checks out early, the total TABOR calculation for taxpayer refunds hadn’t been finalized, according to chief economist with the nonpartisan Colorado Legislative Counsel Greg Sobetski.
On Thursday, the Colorado Legislative Counsel submitted its budget forecast, and in it, an estimate of how much money should be refunded to taxpayers this spring on top of the $750 checks sent out in the fall. So far 91% of checks have been cashed, according to the Department of Revenue.
This second round of the 2021 TABOR refund will be based on your income, and Coloradans could see anywhere between $106 to $506. It will be baked into Coloradans’ state tax returns when they file income taxes next spring.
Sobetski tells FOX31 the Department of Revenue will certify the actual amount in the next couple of weeks but doesn’t expect the department’s figures to “deviate significantly” from the counsel’s projections.