Colorado’s growing economy means tax refunds are on the horizon for residents.
State economists told lawmakers Monday that projections for tax collections continue increasing and they need to start budgeting for refunds mandated by Colorado’s Taxpayer’s Bill of Rights. It calls for refunds when revenue exceeds the combined rate of inflation and population growth.
The first refunds are expected to happen in 2016, and economists told lawmakers they need to budget about $130 million for that in next year’s budget.
Recreational marijuana taxes may also trigger refunds, barring legislative action, because of the overall rise in revenue and because of a TABOR provision regarding new taxes.
Voters approved the pot taxes for school construction, and enforcement and prevention programs. So far, the taxes are estimated to generate about half the $70 million expected.