Attention
Please remember that you must claim the state sales tax refund (TABOR refund) when filing your state income tax return, unlike Colorado Cashback in 2022.
History of TABOR
The Taxpayer's Bill of Rights (TABOR) Amendment was approved by voters in 1992. This amendment to the Constitution of the State of Colorado generally limits the amount of revenue governments in the state can retain and spend. Absent voter approval, it requires excess revenue to be refunded to taxpayers. TABOR also requires voter approval for certain tax increases. The state TABOR revenue limit is generally equal to the prior fiscal year's limit plus the rate of inflation and population growth in Colorado, subject to a voter-approved floor. For more information about TABOR, visit the Legislative Council TABOR web page.
Special Session 2023
Nov. 17 - Nov. 20, 2023 a special session of the 74th General Assembly was held in Colorado, which temporarily changed the 2023 TABOR refund.
SB23B-003 (Identical TABOR Refund) Adjusts the TABOR refund mechanisms for tax year 2023. For one year only (2023), TABOR state sales tax refunds claimed on income tax returns, or PTC applications, will provide an equal refund of $800 for all qualifying individuals ($1,600 for two qualifying individuals filing jointly). The qualifications for individuals to receive the state sales tax refund, the filing deadlines, and the requirements to claim a refund have stayed the same.
Note: While SB23B-003 made adjustments to the calculation of the TABOR State Sales Tax Refund for one year to make the dollar amount per qualifying taxpayer flat, SB23B-003 did not change the filing requirements for the existing refund mechanism. There is no direct payment option for taxpayers like there was for the Colorado Cash Back program and this refund will not work similarly to Colorado Cash Back. Taxpayers must file a 2023 individual income tax return (or PTC application) and claim the refund to access their TABOR state sales tax refund. In particular, it is important to note that certain individuals must file by April 15 in order to claim the refund. Refer to the instructions for the individual income tax return (DR 0104) or the PTC application (DR 0104PTC) for filing instructions and deadlines.
All Recent TABOR Refunds
The table below shows how TABOR surpluses were refunded in recent tax years.
TABOR Surplus Year (State Fiscal Year Ending June 30) | Property Tax Reimbursement | Colorado Cash Back (Senate Bill 22-233) | Income Tax Rate Reduction | Sales Tax Refund |
|---|---|---|---|---|
| 2023 | Yes | n/a | n/a | Yes |
| 2022 | Yes | Yes | n/a | Yes |
| 2021 | Yes | n/a | Yes | Yes |
| 2019 | Yes | n/a | Yes | No |
| 2018 | Yes | n/a | No | No |
2023 TABOR Refund
The Department of Revenue (DOR) is administering the following 2023 TABOR refund mechanism, primarily through the Colorado Individual Income Tax Return (DR 0104):
Sales Tax Refund - Eligible 2023 full-year residents may claim this refund by filing in the manner described below by the appropriate deadline. The refund is $800 for one qualifying taxpayer or $1,600 for two qualifying taxpayers filing jointly.
- File a 2023 DR 0104 by April 15, 2024, if you:
- Were at least 18 years old when the tax year began,
- Do not have a Colorado income tax liability,
- Are not claiming a refund of wage withholding, and
- Are not otherwise required to file a Colorado return because you have no federal filing requirement.
- File a 2023 DR 0104 by October 15, 2024, if you:
- Have a Colorado income tax liability,
- Claim a refund of wage withholding, or
- Are required to file a Colorado return because you are required to file a federal return.
SB23B-003 (Identical TABOR Refund) - TABOR refund mechanism adjustment for tax year 2023. TABOR refunds will provide an equal refund of $800 for all qualifying taxpayers ($1,600 for two qualifying individuals filing jointly).
Certain residents may file a 2023 Property Tax/Rent/Heat (PTC) Rebate Application by April 15, 2024, in lieu of filing an income tax return.