Colorado can anticipate changes in their tax refunds for 2024, as the state has significant revisions to the Taxpayer’s Bill of Rights (TABOR). (Photo: Money)
Lawmakers’ to Equalize TABOR Payments Results in Varying Refunds for Colorado Residents
Colorado can anticipate changes in their tax refunds for 2024, as the state has significant revisions to the Taxpayer’s Bill of Rights (TABOR). Historically, TABOR refunds were distributed based on income levels but lawmakers have opted to standardize payments across the board. This means that higher-earning residents will receive reduced refunds while lower-earning recipients can expect an increase in their returns.
Single filers will now receive an estimated $847, and joint filers can expect $1694 in TABOR refunds in the upcoming year. The move is projected to result in approximately $3.28 billion being returned to taxpayers.
The decision to equalize funds followed the rejection of Proposition HH by Colorado voters, a proposal that aimed to lift the state’s revenue cap and provide property tax relief, also possibly eliminating tax refunds in the future.
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Furthermore, lawmakers have a bill to expand Colorado’s earned income tax credit, which will lead to a reduction in the amount of TABOR refunds to around $800. As a result, individuals earning up to $51,000 and that earning between $51,001 and $104,000 will experience an increase in their TABOR funds, while higher earners will receive reduced amounts compared to previous years.
These adjustments represent a notable change in how tax refunds are distributed in Colorado and could affect a broad spectrum of residents throughout the state.
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