If the state exceeds its constitutional spending limit, then it is required by the Taxpayer's Bill of Rights (TABOR) to refund the excess state revenues (TABOR refunds). There are currently 3 TABOR refund mechanisms: Reimbursement to counties for the senior homestead exemption, a temporary income tax rate reduction, and a sales tax refund.
The bill establishes a temporary fourth TABOR refund mechanism for excess state revenues from all sources for state fiscal year 2021-22. Under this mechanism, if the amount of excess state revenues exceeds the projected total amount of TABOR refunds issued as reimbursement to counties for the senior homestead exemption and, if applicable, through the temporary income tax rate reduction, then on or before September 30, 2022, the
state treasurer department of revenue is required to issue refund checks to every qualified individual in an identical amount; except that for qualified individuals who were granted an extension to file a state income tax return and timely file the state income tax return, then the department of revenue shall issue refund checks to such qualified individuals on or before January 31, 2023. The amount of the refund is $400 for every qualified individual who files a single income tax return or who receives a property tax, rent, or heat credit rebate and $800 for each pair of qualified individuals who file a joint income tax return or who receive a property tax, rent, or heat credit rebate; except that the executive director of the department of revenue has the authority to adjust these amounts to avoid refunding more excess state revenues than are required to be refunded based on the amount or anticipated amount of excess state revenues set forth in the state controller's certification of state revenues.
"Qualified individual" is defined for purposes of the bill as a natural person who is at least 18 years of age on or before December 31, 2021, is a Colorado resident for the entire 2021income tax year, and files a state income tax return for the 2021 income tax year or receives a property tax, rent, or heat credit rebate.
(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)