Sales Tax Refund — Eligible 2024 full-year residents may claim this refund if they file a 2024 Colorado Individual Income Tax Return or a 2024 Property Tax/Rent/Heat (PTC) Rebate Application by October 15, 2025. See the table below for the six refund levels.

Tax Rate Reduction — The temporary TABOR income tax rate reduction has been superseded by a permanent income tax rate reduction. Sales Tax Refund — Eligible 2022 full-year residents may claim this refund by filing in the manner described below by the appropriate deadline. See the 2022 DR 0104 for the six refund levels. ... are not otherwise required to file a Colorado return because you have no federal filing requirement.

Prior to tax year 2022, the Colorado income tax rate could be temporarily reduced to 4.50% if there was enough TABOR surplus. However, starting with tax year 2022, voters permanently reduced the income tax rate to 4.40%, as specified in Sections 39-22-104(1.7)(c) and 39-22-301(1)(d)(I)(K) of the Colorado Revised Statutes. This refund mechanism can be triggered in two circumstances:

This memorandum provides background information on current and past statutory mechanisms used to refund state revenue in excess of the spending limit contained in the Taxpayer's Bill of Rights (TABOR).

An individual may claim the sales tax refund by filing an income tax return or a specified assistance grant application by October 15 of the calendar year following the taxable year for which the refund is being claimed. Whether the TABOR refund mechanisms are triggered and, if so, how many of the mechanisms are triggered depends on the amount of excess state revenues remaining after reimbursement to counties for the homestead exemptions and the qualified-senior primary residence valuation reductions as follows:

August 25, 2023 - The legislature has already earmarked ... of income tax revenue for affordable housing programs. Prior to 2019, Colorado never had TABOR surpluses above $1.04 billion (the amount in fiscal year 1999-2000)....

Active Colorado Springs Utilities electric customer accounts will receive the refund on their March (March 1 – 31) bill. *Check if your property is located within City limits by entering your address into the Colorado Springs sales tax address lookup map. Based on the formula in TABOR laws, ...

October 22, 2024 - Combined with $288 million in excess revenues not refunded in the 2023 fiscal year, the state government owes taxpayers nearly $1.7 billion in refunds, according to the state auditor’s October TABOR Financial Report.

October 17, 2024 - The excess collected in 2024 was lower than the previous year, when the state collected $3.6 billion more in revenue than TABOR allowed. Last year, Colorado taxpayers received refunds of $800 each.

April 19, 2025 - The surplus was also a result of high business profits and income tax collections. You must have lived in Colorado for the entire 2023 tax year and timely filed a state tax return in order to be eligible for the full $1700 TABOR Tax Refund.

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Revenue collected above the TABOR limit must be returned to taxpayers even if it is needed to cover the increased costs for delivering services. All Jefferson County property taxpayers from 2021 will receive their proportionate share of the estimated $17.3 million refund.

August 6, 2025 - The evolution of TABOR refunds showcases Colorado’s commitment to returning excess revenue to its citizens. Below is a detailed timeline of key milestones in TABOR’s history, highlighting legislative changes, refund mechanisms, and significant payouts.

1 month ago - In 1992, the voters of the state ... X of the Colorado Constitution that restricts revenues for all levels of government (state, local, and schools). Under TABOR, state and local governments cannot raise tax rates without voter approval and cannot spend revenues collected under existing tax rates without voter approval if revenues grow faster than the rate of inflation and population growth. Revenue in excess of the TABOR limit, commonly referred to as the "TABOR surplus", must be refunded to taxpayers, ...

For the second straight year, Colorado ... of Rights (TABOR) added to the state's constitution in 1992, any funds in excess of the spending limit must be returned to taxpayers unless the voters authorize otherwise....

July 24, 2023 - From TABOR’s adoption in 1992 through 2001, over $2 billion has been returned to taxpayers, but there haven’t been any refunds since, the consequence of recessionA recession is a significant and sustained decline in the economy.

However, in some years the actual revenue collected ends up being higher than the TABOR limit allows. The Colorado Constitution allows lawmakers and local officials to determine how to return the money. Examples of different refund methods have included a credit to the following year’s property tax bill, a temporary adjustment to the mill levy, or a refund check.

September 28, 2023 - The refunds have been part of Colorado’s political life since 1992, when voters passed the Taxpayer’s Bill of Rights. The constitutional amendment says that Colorado’s discretionary budget can only grow at a rate determined by inflation and population growth. If tax revenues increase too fast, the state ends up with a “TABOR surplus” that must go back to taxpayers.

There is an estimated $6 billion owed to Colorado taxpayers over the next 3 years. Bills introduced during 2024 legislative session would reduce this.

For one year only (2023), TABOR state sales tax refunds claimed on income tax returns, or PTC applications, will provide an equal refund of $800 for all qualifying individuals ($1,600 for two qualifying individuals filing jointly).