Yay! Coloradans On Track To Receive TABOR Refunds Again This Year
The state of Colorado is trying to decide exactly how excess tax revenue will be refunded to taxpayers in 2023.
Colorado Anticipates Large Tax Surplus
The state's fiscal year runs through June 30, so we won't know how much in excess taxes the state has collected for a while. However, at this point, the state is expecting to collect $2.7 billion in excess tax revenue, according to the Office of State Planning and Budgeting. Colorado's constitution stipulates that money has to go back to taxpayers. It's called the Taxpayers Bill of Rights. (TABOR)
Last year, all taxpayers in Colorado received the same amount of refund. It was $750 for single filers and $1500 for joint tax filers. This year's refund is expected to be less, but the question is how that money will be refunded.
The TABOR Refund Could Come In A Variety of Ways
It could be like last year when everybody received a check in the mail - and everyone received the same amount regardless of their income or tax bracket. Previously, Governor Jared Polis said he'd like to see the refund issued through a lower income tax rate. It's also possible that some of the surplus revenue could be used for property tax relief.
Advice: Don't Spend Your Refund Until It's In the Bank
Nothing will be certain for the next several weeks, so it would be advisable to wait before spending money that you hope and expect to have in your pocket. Only time will tell if there will actually be a TABOR surplus, how much the refund will be, and exactly how that refund will be realized. However, it certainly doesn't hurt to think about it.