Growing economy means refunds for Colorado taxpayers

Colorado residents will benefit from the growing state economy with special tax refunds next year, but exactly how much is a question lawmakers will wrestle with over the coming months.

The state’s quarterly economic forecasts presented to lawmakers Wednesday showed they will have to refund anywhere from $70 million to $220 million. Those refunds are triggered by the state’s Taxpayer’s Bill of Rights, which calls for refunds when state revenue exceeds the combined rate of inflation and population growth.

That news will also have a more immediate impact on the annual budget lawmakers will vote on in the coming weeks. State revenue is increasing, but TABOR refunds and other obligations mean lawmakers have only about $50 million to fund pending legislation, such as increasing penalties for repeat DUI offenders.