Colorado tax refunds could come a year early
DENVER — Colorado lawmakers may have to refund money to taxpayers sooner than they initially expected.
Refunds are a sign of Colorado’s booming economy. But it also means lawmakers will be restricted in how much money they’ll be able to keep and spend under Colorado’s Taxpayer’s Bill of Rights, also known as TABOR.
State economists giving lawmakers a quarterly revenue forecast Monday gave conflicting estimates whether refunds are required in the 2015 tax year. Legislative economists say no, but warn that the possibility exists.
However, Gov. John Hickenlooper’s economists predict the state need to refund nearly $200 million next year because of revenue increases in the current budget year. Lawmakers weren’t expecting refunds until the 2016 tax year.
TABOR requires refunds when revenue exceeds the combined rate of inflation and population growth.
FILE – In this July 17, 2014, file photo, Colorado Gov. John Hickenlooper, center, takes questions after speaking on oil and gas drilling at the Metro Denver Chamber of Commerce. As the Colorado economy improves, elected officials are getting more comfortable asking for their funding needs. But with more revenue, Colorado faces the state constitutional requirement to refund money to taxpayers, even as some lawmakers argue they haven’t fully restored cuts made during the last recession. (AP Photo/Brennan Linsley, File)