TABOR refunds are not sales tax refunds—they come from a different part of Colorado's budget

A TABOR refund is not a sales tax refund. It is money Colorado returns to taxpayers when the state collects more revenue than the Taxpayer Bill of Rights (TABOR) law allows it to keep. The refund comes from the state's overall tax revenue—income tax, sales tax, and other sources combined—not from sales tax alone.

The confusion is understandable because both involve taxes and money coming back to you. But the trigger is different. A sales tax refund typically happens when you overpay on a purchase or when a retailer makes an error. A TABOR refund happens when Colorado's total tax collection exceeds a formula based on inflation and population growth, and the state is required by law to return the excess.

TABOR refunds are rare. Colorado has issued them in only a handful of years since the law passed in 1992, most recently in 2023. When they do happen, they go to all Colorado residents who filed a state income tax return for that year—not just to people who paid sales tax.

Key Takeaways

  • TABOR refunds are triggered when Colorado's total tax revenue exceeds what the state is allowed to keep under the Taxpayer Bill of Rights formula, not when sales tax alone is too high.
  • You receive a TABOR refund only if you filed a Colorado state income tax return for the year in question, regardless of how much sales tax you paid.
  • The refund amount varies by year and is divided equally among all may be able to access filers, so you cannot calculate your share in advance.
  • TABOR refunds are delivered by check or direct deposit, depending on how you filed your tax return, and typically arrive within a few months of the state announcing the refund.
  • TABOR refunds have occurred only a few times since 1992, making them infrequent events rather than an annual occurrence.

How Colorado's TABOR formula triggers a refund

Colorado's TABOR law sets a cap on how much revenue the state can retain each year. The cap is based on the previous year's revenue, adjusted for inflation and population growth. If actual revenue comes in higher than this cap, the excess must be returned to taxpayers.

The formula does not distinguish between sales tax, income tax, or other revenue sources. It looks at total state revenue. This means a TABOR refund can happen even if sales tax revenue alone is normal—if income tax or other sources push the total over the limit, everyone gets a refund.

The state legislature can vote to keep the excess revenue instead of refunding it, but only if voters approve a temporary increase to the TABOR limit. This has happened in recent years, which is why refunds have become less common. In 2023, Colorado issued a TABOR refund because the legislature did not pass a measure to suspend the requirement.

Who receives a TABOR refund

You receive a TABOR refund if you filed a Colorado state income tax return for the year the refund covers. This includes residents who owed taxes, residents who received a refund, and residents who broke even. It does not include people who did not file a return, even if they lived in Colorado and paid sales tax.

The refund is not based on how much tax you paid or how much sales tax you spent. It is divided equally among all filers. If 2 million people filed returns and the state has $100 million to refund, each person gets roughly $50, regardless of income or tax history.

Non-residents who filed Colorado returns may also receive a refund, depending on the year and the state's rules for that refund cycle. Check the Colorado Department of Revenue website for the specific year's guidance if you filed as a non-resident.

How TABOR refunds are delivered and when they arrive

Colorado delivers TABOR refunds by check or direct deposit. If you filed your return electronically and provided banking information, the state will deposit the refund directly into your account. If you filed a paper return or did not provide banking details, you will receive a check by mail.

The timeline varies. The state typically announces a TABOR refund in the spring or early summer after the fiscal year ends. Processing and delivery can take several months. In 2023, for example, the state began issuing refunds in the fall, with most arriving by the end of the year.

You do not need to do anything to receive a TABOR refund. The state identifies may be able to access filers from its tax records and sends the money automatically. If you move after filing, update your address with the Colorado Department of Revenue so the check reaches you.

Tracking your TABOR refund status

The Colorado Department of Revenue publishes information about TABOR refunds on its website, including the total amount to be refunded, the number of may be able to access filers, and the per-person amount. When a refund is announced, the site also provides a timeline for when checks and direct deposits will be sent.

If you filed electronically and chose direct deposit, you can check the status through your online tax account on the Department of Revenue website. Enter your Social Security number and the year in question to see whether your refund has been processed.

If you filed a paper return or received a check, tracking is more limited. The Department of Revenue does not offer a check-tracking tool for TABOR refunds. If you have not received your check within the stated timeline, contact the department directly by phone or through its website to verify your mailing address and request a replacement if needed.

What to do if you did not receive your TABOR refund

If you filed a Colorado return for the year in question but did not receive a refund, first verify that you actually filed. Check your records or contact the Colorado Department of Revenue to confirm a return was received under your name and Social Security number.

If your return was filed but you did not receive the refund, the issue is usually an outdated address on file. The state mailed a check to the address listed on your return. If you moved and did not update your address with the Department of Revenue, the check may have been returned to the state.

Contact the Colorado Department of Revenue with your current address and request a replacement check or direct deposit. Have your Social Security number, the year of the refund, and your filing status ready. The department can reissue the refund or deposit it to a bank account if you provide that information.

TABOR refunds versus other Colorado tax refunds

Colorado offers several types of refunds, and it is easy to mix them up. A state income tax refund is money you overpaid on your annual return—it comes back when you file. A sales tax refund is rare and usually involves a retailer error or a specific exemption you claimed. A TABOR refund is a constitutional requirement triggered by excess state revenue.

You might receive more than one type of refund in the same year. For example, you could get a state income tax refund when you file in spring, and a TABOR refund later in the year if the state announces one. Each is tracked separately and delivered through different channels.

If you are unsure which type of refund you are waiting for, check the Colorado Department of Revenue website or contact the department directly. Provide the year and the reason you believe you are owed a refund, and staff can tell you what to expect and when.

Frequently Asked Questions

Do I have to do anything to get a TABOR refund?

No. If you filed a Colorado state income tax return for the year the refund covers, the state will send the money automatically. You do not need to request it, claim it on a form, or take any action. The state identifies may be able to access filers from its records and processes refunds on its own schedule.

Can I get a TABOR refund if I did not live in Colorado the whole year?

If you filed a Colorado state income tax return for that year, you are may be able to access for a TABOR refund, even if you lived in the state for only part of the year. The refund is based on filing a return, not on residency duration. Non-residents who filed Colorado returns may also be may be able to access depending on the specific year's rules.

What happens to a TABOR refund if I owe back taxes or child support?

Colorado can offset a TABOR refund against certain debts, including back taxes, child support, and other court-ordered obligations. If you owe money to the state or a child support agency, contact them before the refund is issued to understand whether an offset will apply. The state will notify you if your refund is reduced.

How often does Colorado issue TABOR refunds?

TABOR refunds are infrequent. Colorado has issued them only a handful of times since 1992. They depend on revenue exceeding the TABOR cap and the legislature not passing a measure to suspend the refund requirement. Recent years have seen fewer refunds because the legislature has voted to keep excess revenue instead.

Is a TABOR refund the same as a stimulus payment?

No. A TABOR refund is a state constitutional requirement triggered by excess revenue. A stimulus payment is a one-time federal payment made during economic crises, like the payments issued during the COVID-19 pandemic. They are separate programs with different sources, amounts, and may be able to access rules.