UPDATE: Tax refunds at top of list for Colorado lawmakers
Colorado lawmakers will address budgetary surpluses that require taxpayer refunds during the legislative session that begins this week.
The session begins Wednesday, and after November’s elections Democrats control the House and Republicans control the Senate.
Lawmakers may be dealing with tax refunds sooner than expected. The first refunds for nearly $137 million were expected to happen in tax year 2016. But economists from the governor’s office say revenue growth is stronger than anticipated and refunds are possible as soon as this spring.
Economist Fred Crowley said this surplus is a good sign.
“A surplus is a reflection that the economy is doing very well. When we don’t have surpluses it’s a reflection that the economy is not doing well,” said Crowley.
In 1992, Colorado voters passed the Taxpayers’ Bill of Rights, or TABOR. Under the Constitutional amendment, taxpayers can receive money back during a surplus.
Crowley said taxpayers have received money back six times since TABOR was adopted.
The amount of money people can get back depends on both the population size and the size of the surplus. In fiscal year 1999-00, taxpayers received $269 back. In fiscal year 2004-05, taxpayers received $15 back.
“There is no clear evidence that it helps us. It is clear that it shrinks the size of government, which is the intent of the Taxpayers’ Bill of Rights,” said Crowley.
Crowley said lawmakers are usually split on this issue. He said often times, Democrats advocate using the surplus money for state projects. He said Republicans usually advocate giving the money back to taxpayers.
Taxpayers in Colorado Springs were split on how the money should be used.
“A lot of that money will go a lot farther if we apply it to infrastructure projects, or parks, or something like that, instead of giving everyone $15,” said Dan Rodriguez.
“I would rather just have the taxes back. They have enough money and it seems like they waste some of it so I would like them to give it to me so I can waste my own money,” said Steve Clark.
If lawmakers do ask to keep the surplus to fund state departments or projects, they would have to ask voters.
It’ll be a busy four months for lawmakers who will also tackle government control over hydraulic fracturing and a possible overhaul of the medical marijuana industry.
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