Stimulus Checks From Colorado: Gov. Polis Signs Bill To Send Up To $1,000 TABOR Refunds Early
State stimulus checks continue to flow, and the latest to join the list is Colorado. Governor Jared Polis recently signed a bill that would send up to $1,000 stimulus checks from Colorado to its residents. Initially, the maximum refund approved was $800, but it has now been increased due to revenue data.
Stimulus Checks From Colorado: Who Will Get Them?
On Monday, Gov. Polis signed a bill (Senate Bill 233) that would send TABOR refunds to tax filers. Individual filers will be eligible for up to $500, while joint filers will get up to $1,000 if they have filed their 2021 tax return. These stimulus checks from Colorado are part of the state’s Cash Back plan.
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The new bill is expected to refund up to 85% of the excess state revenue collected last year back to the taxpayers. Specifically, the bill would give Coloradans, who filed their tax return by June 30, an early refund because of the Taxpayer Bill of Rights (TABOR).
As a result, those who filed their return by June 30 will get stimulus checks from Colorado in August or September, instead of next spring. Those who file their tax return after June 30, but before the October 17 deadline, will get the refund checks in January 2023.
“We are providing immediate relief for hardworking Coloradans by sending rebate checks back quickly because there’s no reason the government should hold onto your hard earned money any longer than it has to,” Gov. Polis said in a statement.
Initially, the amount approved for individual filers was $400 ($800 for joint filers). However, the latest revenue data pushed lawmakers to raise the stimulus check amount. It is also possible that the final refund amount could be even higher depending on the returns. As per an estimate from the governor’s office, about 3.1 million taxpayers could be eligible for an early refund.
TABOR: What Is It?
TABOR or the Taxpayer's Bill of Rights requires the state to refund the excess revenues if the state exceeds its constitutional spending limit. There are three refund mechanisms under TABOR, including a sales tax refund, a temporary income tax rate reduction and reimbursement to counties for the senior homestead exemption.
However, the bill signed by Gov. Polis sets a temporary fourth TABOR refund mechanism for the fiscal year 2021-22. Under the fourth TABOR refund mechanism, the state is required to send refund checks to eligible taxpayers 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.”
For the purpose of the bill, a “qualified individual" is a person who is at least 18 years of age on or before Dec. 31, 2021, is a resident of the state for the full 2021 income tax year, and filed a tax return for the 2021 or receives a property tax, rent, or heat credit rebate.
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