TABOR, or the Taxpayer Rights Amendment, was made law in 1992. It limits how much money the government can get and requires surpluses to be given back to people. It also says that tax rises must be approved by the people. When figuring out the limit, inflation and yearly population growth are taken into account.
At first, TABOR tried to limit how much the state of Colorado spent, which is where this program works. However, its use has caused arguments because public services are limited by limited budgets. It was changed in some ways in 2005, but at its core, it still offers returns based on tax surpluses. When income goes over the yearly limit, there is a surplus. This situation made it possible to pay for current returns in 2024. Some of the money is also used to give seniors and soldiers tax breaks.
Tax breaks and rebates are good things about TABOR in Colorado
In Colorado, TABOR benefits come in two forms: a sales tax rebate and a brief lowering of the income tax rate. The numbers change based on the adjusted gross income of the taxpayer. Tax returns for 2025 must be turned in by October 15, and they are for the tax year 2024.
Values are based on income amounts. People who are single can get between $177 and $565, and married couples who file equally can get between $354 and $1,130. These numbers are part of the general state tax refund and are not given out separately.
The tax rate will drop from 4.40% to 4.25% during 2024 because of the short cut. This change happens automatically to all taxpayers; there are no other steps needed. Both benefits are run by the Colorado Department of Revenue.
Some other things you should know about TABOR
You can use either the state report or the PTC form to get your sales tax refund. Needs strong action from taxpayers. Based on six levels of income, the amounts were set in April 2025, after official estimates.
The main goal of the short-term tax cut is to make paying taxes easier for everyone. A person making $50,000 a year, for instance, will save an extra $75 in 2024. This benefit is applied immediately, so you don’t have to do anything else.
There are two ways that work together. Even though the refund depends on your adjusted gross income (AGI), dropping the tax rate helps people with higher taxable incomes more.
The formal table shows the ranges of adjusted gross income and the amounts that go with them. The lowest level is for single people with an AGI of up to $53,000. They will get $177. If a married couple files equally, the amount doubles to $354. At the top level, with an AGI of $302,001 or more, people will get $565 and joint filers will get $1,130.
In 2023, fixed amounts were used, but in 2024, equity is prioritised based on contributory ability. People had complained that profits in past years weren’t balanced, so this change was made.
What happens to your TABOR payment if you don’t meet the requirements?
People who don’t show a state statement can’t get their money back. Seniors who use form DR0104EZ and have non-taxable income less than $25,000 are exempt. The regular due date was April 15, 2025, but you have until October 15, 2025 to file if you need to. The Treasury Department says that people who met the early action date got their returns in May 2025.
Process times are different for each case. It usually takes three to five weeks to handle electronic returns, but it can take up to twelve weeks to handle hard returns. Due to mistakes in forms or data checking, delays happen. The most important thing is that you had to live in Colorado all year in 2024. Students or service members from other states must show proof of their tax address. Non-residents and assets in trusts are not eligible for refunds.
Unless you are a senior and use DR0104EZ, you also have to have correctly reported and paid your taxes. People in this group must have earned less than $25,000 a year and paid at least one property, rent, or heat tax. People who file jointly must be married by December 31, 2024. As long as the return is joint, divorces or separations after the fact don’t change the amount.