What a TABOR refund is and who receives it
A TABOR refund is money Colorado returns to taxpayers when state revenue exceeds the amount the Taxpayer Bill of Rights (TABOR) allows the state to keep. TABOR is a constitutional amendment that caps how much revenue Colorado can retain each year. When actual revenue surpasses that cap, the state is required by law to return the excess to taxpayers rather than spend it or save it.
You receive a TABOR refund automatically if you filed a Colorado income tax return for the year in question. The state does not require you to request it or take any action. If you did not file a return but had Colorado income tax withheld from paychecks or made estimated tax payments, you may still be may have access to to a refund, but you would need to file a return to claim it.
TABOR refunds are not the same as your regular income tax refund. Your regular refund happens because you overpaid taxes during the year. A TABOR refund happens because the entire state collected more money than the law allows it to keep.
Key Takeaways
- TABOR refunds occur only when Colorado's total revenue exceeds the constitutional spending limit, which does not happen every year.
- The state automatically sends refunds to anyone who filed a Colorado income tax return; you do not need to request one.
- Refund amounts vary by income level and filing status, and the state calculates your share based on your tax return.
- TABOR refunds arrive as a separate check or direct deposit weeks or months after the state certifies that revenue exceeded the limit.
- If you did not file a return but had taxes withheld, you must file to receive your share of the refund.
How the refund amount is calculated
Colorado does not send every taxpayer the same amount. Instead, the state calculates each person's share based on the income tax they paid during that year. The Department of Revenue divides the total excess revenue by the total income tax collected statewide, then applies that percentage to what you paid.
For example, if the state has $100 million in excess revenue and collected $10 billion in total income tax, each taxpayer receives a refund equal to 1 percent of the income tax they paid. Someone who paid $2,000 in income tax would receive $20; someone who paid $5,000 would receive $50.
Your filing status and income level do not directly change the calculation, but they affect how much income tax you paid in the first place, which is what determines your refund size. Self-employed people, retirees with investment income, and high-income earners typically receive larger refunds because they paid more in state income tax.
When TABOR refunds actually occur
TABOR refunds do not happen every year. Colorado must first collect revenue that exceeds the constitutional limit, which depends on population growth, inflation, and overall economic conditions. In some years, revenue falls short of the limit, and no refund is issued. In other years, the excess is substantial.
The state does not know the final revenue numbers until months after the tax year ends. The Colorado Department of Revenue certifies whether a refund is owed, and the state legislature then passes a bill authorizing the refund and specifying the amount. This process typically takes until late spring or early summer of the following year.
Once the legislature authorizes the refund, the state begins processing and mailing checks or depositing funds directly to bank accounts. This can take several more weeks. If you filed your return electronically and provided direct deposit information, you typically receive your refund faster than if you requested a paper check.
How to receive your TABOR refund
The state uses the address or banking information on your most recent Colorado income tax return. If you filed electronically and chose direct deposit for your regular refund, the state will deposit your TABOR refund the same way. If you filed on paper or requested a check for your regular refund, you will receive a paper check by mail.
You do not need to update your address or banking details unless you have moved or changed banks since filing your return. If your address has changed, you can update it with the Colorado Department of Revenue before the refund is processed, though the state typically has a deadline for address changes once the refund authorization bill passes.
If you believe you should have received a TABOR refund but did not, or if your check was lost in the mail, contact the Colorado Department of Revenue. You will need your Social Security number and the tax year in question. The department can verify whether a refund was issued and reissue a check or deposit if necessary.
TABOR refunds and your tax filing obligations
Receiving a TABOR refund does not change whether you need to file a Colorado income tax return in future years. The refund is separate from your regular tax filing and does not affect your tax liability or withholding.
If you did not file a return for the year a TABOR refund was issued, you can still claim your share. You would file a return for that year, and the state would process your refund along with any regular refund you are owed. There is no time limit on filing a return to claim a TABOR refund, though filing sooner is simpler than filing years later.
If you owe Colorado income tax from a previous year, the state may apply your TABOR refund to that debt before sending you the remainder. This is called offset. You would receive notice if this happens.
Tracking your TABOR refund status
The Colorado Department of Revenue does not provide a tracking system specifically for TABOR refunds the way it does for regular tax refunds. Instead, you can check the department's website for announcements about when TABOR refunds are being processed and mailed.
Once the state announces that refunds are being sent, you can expect yours within the timeframe stated. Direct deposits typically arrive within one to two weeks of the announcement. Paper checks take longer and depend on mail delivery, which can add another week or two.
If you have not received your refund within the stated timeframe, wait a few additional days before contacting the department. Mail delays are common, especially during high-volume periods. If more than two weeks have passed since the announced processing date, contact the Colorado Department of Revenue with your Social Security number and tax year.
What happens if Colorado does not have excess revenue
In years when Colorado's revenue does not exceed the TABOR limit, no refund is issued. This has occurred multiple times in recent decades, particularly during economic downturns or when tax policy changes reduce collections.
The state does not notify taxpayers that no refund is coming; instead, it simply does not process one. If you are expecting a refund and do not receive one, it likely means the state did not have excess revenue that year. You can check the Colorado Department of Revenue website or recent news coverage to confirm whether a TABOR refund was authorized for that tax year.
Frequently Asked Questions
Do I have to do anything to get my TABOR refund?
No. If you filed a Colorado income tax return, the state sends your refund automatically. You do not need to request it, sign up for it, or take any action. The refund is based on your tax return information on file.
What if I moved after filing my tax return?
Update your address with the Colorado Department of Revenue before the refund is processed. The state typically allows address changes for a limited time after the legislature authorizes the refund. If you miss the deadline, the check may be sent to your old address. Contact the department to request a reissue.
Can I get my TABOR refund as a direct deposit instead of a check?
If you filed electronically and chose direct deposit for your regular refund, the state will deposit your TABOR refund the same way. If you filed on paper, you will receive a check. You cannot change this after the refund is authorized.
How long does it take to receive a TABOR refund after it is authorized?
Direct deposits typically arrive within one to two weeks of the state announcing that refunds are being processed. Paper checks take longer due to mail delivery and may arrive two to four weeks after the announcement, depending on your location.
What if I did not file a Colorado tax return for the year the refund was issued?
You can file a return for that year to claim your share of the refund. There is no deadline to file a return for a past year to claim a TABOR refund, though filing sooner is simpler. The state will process your refund once your return is received and processed.