Millions of Coloradans are set to receive $750 checks in the mail soon, as part of the Colorado Cashback program that state lawmakers passed earlier this year.
The Taxpayer's Bill of Rights (TABOR) limits the amount of revenue the state can retain and spend in each fiscal year. Any revenue that exceeds the limit, determined by a formula that factors in population growth and inflation, must be refunded to taxpayers unless voters approve a measure allowing the state to retain the excess.
One of the ways the $3.5 billion surplus from the 2021/2022 fiscal year is being refunded is through direct checks to Colorado residents.
Senate Bill 22-233 shifted the timeline of the payout from next spring to this summer and is sending the same amount to all eligible Coloradans on a one-time basis.
Individual filers will receive $750 check, while joint filers will receive $1,500.
Those who lived in Colorado for all of 2021 and turned 18 by December 31, 2021, are eligible for the payment. Residents must file a tax return to claim the refund even if they didn't have taxable income.
To receive the check in August or September, they must have filed a tax return or applied for a property, rent or heat credit rebate by June 30 this year. Those who filed for an extension and submit their tax return by the October 17 deadline will receive their check by January 31, 2023.
Residents should ensure they have their current address on record with the Colorado Department of Revenue as the checks are only going out in the mail.
Democratic Gov. Jared Polis has said the aim is to provide financial relief as Coloradans continue to grapple with the rising cost of living and high inflation.
"We are providing immediate relief, putting money back into the pockets of hardworking Coloradans to help pay for everyday items," he said in a statement in June.
TABOR refunds usually vary in amount, with those who earn more receiving a larger refund because they paid more in taxes.
Fiscal analysis from the nonpartisan legislative council staff found that those earning more than $265,000 a year will be receiving almost $1,000 less than they would have as a result of the legislature's change to how TABOR refunds are administered for the 2021/2022 fiscal year.
But those who earned less benefit more from the change. Residents who earn less than $47,000 a year will receive $211 more in their refund than they would have without the new law, according to the analysis.
Uncommon Knowledge
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