The state auditor’s office has officially confirmed that Colorado exceeded the revenue limits established by the Taxpayer’s Bill of Rights in the most recent fiscal year. This means that taxpayers can expect to receive significant refunds, as the state collected over $3.6 billion more than what was allowed by TABOR in fiscal year 2023.
After Proposition HH was rejected in November, a special session was convened to pass legislation that guarantees a uniform refund for every taxpayer, regardless of their income. Under the new legislation, each individual taxpayer is set to receive $800, while couples who file jointly can expect a combined refund of $1,600.
The TABOR refunds are usually distributed via state tax returns. In order to receive the refund, taxpayers need to file a 2023 individual income tax return or PTC application. It is important for taxpayers to explicitly claim the TABOR refund in their filings.
In November 1992, the Colorado Constitution integrated TABOR as a crucial component. This amendment enforces limitations on the overall revenue that both state and local governments can retain and allocate. It requires that any excess revenue exceeding the set limits be returned to the taxpayers.