The Colorado state government is facing a $1.7 billion refund owed to taxpayers under the Taxpayer’s Bill of Rights (TABOR). A state audit revealed that the government collected $1.4 billion more in revenue during the 2024 Fiscal Year than allowed under TABOR, bringing the total refund amount to approximately $1.66 billion. TABOR, passed by voters in 1992, limits revenue growth to the inflation rate plus population change, with any excess amount needing to be returned to taxpayers. Colorado has three refund mechanisms in place to distribute the funds, including a property tax exemption reimbursement, a temporary reduction in the income tax rate, and a six-tier sales tax refund based on adjusted gross income. State audit manager Maya Rosochacova stated that the excess revenues are expected to trigger all three refund mechanisms. This news comes as taxpayers eagerly await their refunds and the government scrambles to allocate the funds accordingly. Stay tuned for updates on how Colorado plans to distribute the $1.7 billion in refunds owed to its taxpayers.
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