Coloradans' TABOR refund checks will not be taxed

Coloradans' 2024 TABOR refund checks will not be taxed by the IRS. As CBS News Colorado first reported, the IRS said TABOR refunds may have been subject to income tax. And the IRS asked Colorado taxpayers to delay filing their 2024 taxes until it made a decision.

Sen. Michael Bennet said there will not be a change to TABOR tax refunds and that taxpayers do not have to do anything different.

This comes following a meeting with IRS Commissioner Daniel Werfel and Colorado Gov. Jared Polis.

It was the first time the agency has questioned the taxability of TABOR refunds since voters passed the Taxpayer Bill of Rights 30 years ago. The constitutional amendment caps the amount of revenue the state is allowed to keep and, anything over that cap needs to be sent back to taxpayers. 

Last year, it was nearly $3 billion, which resulted in $750 checks for individuals and $1,500 for joint filers.