Advance Colorado Plans Suit Over $306 Million TABOR Refund Shift as Senate Advances HB 1419
Updated
Updated · coloradopolitics.com · May 8
Advance Colorado Plans Suit Over $306 Million TABOR Refund Shift as Senate Advances HB 1419
1 articles · Updated · coloradopolitics.com · May 8
Advance Colorado said it will sue Colorado over House Bill 1419 after the state Senate gave preliminary approval to a plan redirecting $306 million in TABOR refunds.
The bill would withhold about $300 million over two years to offset what Democrats call a prior over-refund tied to federal tax-law changes that took effect after Colorado had closed its 2024-25 books.
Joint Budget Committee staff warned in February that the 2024-25 refund likely does not qualify as an over-refund under current law, highlighting legal risk even as Democratic lawmakers pushed ahead.
Fiscal analysts estimated the clawback at $136.1 million in 2026-27 and $153 million in 2027-28 if no TABOR surplus is collected next year, with the measure still needing a final Senate vote and House concurrence.
The dispute sets up a broader constitutional fight over TABOR, the 1992 voter-approved limit requiring excess state revenue to be returned to taxpayers.
Will reclaiming past refunds become a new tool for states to manage budget shortfalls?
How can a state legally reclaim taxpayer refunds after its fiscal year has already closed?