Strong jobs recovery means more money can be returned early
DENVER, CO – The House today passed legislation sponsored by Representatives Lindsey Daugherty and Tony Exum that will send every Colorado taxpayer an early refund of at least $400, or $800 for joint filers, as soon as possible. An amendment was added on third reading to allow the early refunds to climb even higher if revenues come back higher than expected, as early estimates indicate is likely.
“Colorado’s strong economic recovery means we can send even more money back to taxpayers in September to help them afford the rising cost of living and pay for necessities like gas, groceries and rent,” said bill sponsor Rep. Tony Exum, Sr. D-Colorado Springs. “We’re excited that based on positive economic indicators, we will be able to boost the amount of the early refund checks Coloradans will receive in September. People are struggling now, so we are delivering this urgent relief as soon as we can in a fairer and more equitable way.”
“Today, we voted to give Coloradans an even bigger boost this year by increasing the checks that will go out in September as revenue expectations rise,” said bill sponsor Rep. Lindsey Daugherty, D-Arvada. “This session, we reduced property taxes by $274 for the average homeowner, established universal preschool that will save families thousands and help parents get back to work, and lowered costs for small businesses. The pandemic has led to higher prices, so we’re doing everything we can to put money back into people’s pockets as soon as possible to provide relief when they need it the most.”
SB22-233 speeds up the timeline for refund checks to help families afford basic necessities like gas and groceries and ensures a more equitable distribution of refunds. All full-time residents of Colorado who either file their 2021 income tax returns, are granted an extension or apply for a PTC rebate by June 30th, 2022 will receive a check.
The surplus that is being sent to taxpayers early is revenue collected this fiscal year, which ends June 30. Colorado’s strong economic growth and rapid job recovery has led to an even larger surplus than expected, and we now anticipate being able to increase the originally anticipated refund amounts of $400 for single filers and $800.
The House passed an amendment offered by bill sponsors Reps. Exum and Daugherty to increase the amount of the checks. The amendment specifies that 85 to 87 percent of surplus revenue be refunded to taxpayers through this mechanism – in an equal amount for single filers, and double that amount for joint filers.
Colorado Democrats’ 2021 state stimulus plan, fair tax reform, and responsible governance have led to a robust economic recovery and a record state surplus that is being returned to taxpayers early via this tax rebate, in addition to existing refund mechanisms including the senior homestead exemption, a temporary reduction in the rate of the income tax and the six tier sales tax refund.
The expedited tax relief provided by SB22-233 will add to the savings from the comprehensive tax reform legislation and property tax relief passed by the legislature and signed by Governor Polis last year that is already putting money back into Coloradans’ pockets. By repealing tax loopholes for large corporations and millionaires and reducing property tax assessment rates, Democrats have secured hundreds of millions of dollars in economic assistance and tax relief for hard working Coloradans, seniors, and small businesses.