THANKS FOR NOTHING, DEMS: House bill Balances Colorado budget using taxpayer refunds.

Polis’ office suggests that, due to immediate reductions in state tax collections upon passage of the federal OBBBA, the state is entitled to recoup Taxpayer’s Bill of Rights (TABOR) refunds accordingly.

However, as previously explained, Legislative Council Staff believed that the request was legally dubious and could exacerbate future fiscal challenges should the governor’s office be wrong.

Regardless, four members of the Joint Budget Committee decided to pursue recouping TABOR refunds from taxpayers, and House Bill 1419 is how they plan to do it.

Assuming the governor’s suggestion is legal, the state would retain $136.1 million in overcollected revenue that would otherwise be refunded back to taxpayers under TABOR in FY2026-27 and $153 million in FY2027-28.

However, if the Polis proposal is found illegal, the state would likely be required to repay the money at 10% annual interest, as required by TABOR.

But cut spending? Never.