Tax Alert: Tabor Refund Bill passes Senate, awaits Governor’s signature
Senate Bill 22-233 passed on May 10, 2022. If signed by the Governor, all eligible Coloradans will receive a TABOR refund – the “Colorado Dividend” – whether they filed a 2021 tax return by April 18, June 30, or October 17, 2022. Earlier versions of the Bill specified other deadlines (May 31 and June 30), but those dates were removed from the final Bill and are no longer relevant. The Bill establishes a temporary fourth TABOR refund mechanism for tax years 2021 and 2022.
The anticipated amount of the refund is $400 for every “qualified individual” who files a single income tax return or who receives a property tax, rent, or heat credit rebate and $800 for each pair of qualified individuals who file a joint income tax return or who receive a property tax, rent, or heat credit rebate.
“Qualified individual” is defined for purposes of the bill as a natural person who is a Colorado resident for the entire 2021 income tax year and files a state income tax return for the 2021 income tax year or receives a property tax, rent, or heat credit rebate.
To read a summary of the bill, click here.
To read the most recent version of the full bill, click here.
What action do I need to take?
- If you have already filed your 2021 return and qualify, you should receive a refund directly from the state and no further action is needed.
- If you have extended your 2021 return, you have until October 17, 2022 to file your return and receive the refund.
If you have any questions, please contact your trusted tax advisor.
– The SKR+CO Team