What a Tabor Refund Is and Who Gets One

A Tabor refund is money Colorado returns to taxpayers when state revenue exceeds the limit set by the Taxpayer Bill of Rights (Tabor). Tabor is a constitutional amendment that caps how much revenue Colorado can keep each year. When actual revenue runs above that cap, the state must return the overage to taxpayers rather than keep it.

You receive a Tabor refund automatically if you filed a Colorado income tax return for the year the refund is issued. You do not need to request it or take any action — the state processes and sends it on its own schedule. If you did not file a return that year, you are not may have access to to a refund, even if you paid taxes through withholding.

Tabor refunds happen irregularly. The state does not issue one every year. Revenue must exceed the cap by enough to trigger a refund, and the state legislature must also pass a bill authorizing the refund and deciding how to distribute it. Some years the cap is not exceeded. Other years revenue exceeds it but the legislature does not authorize a refund.

Key Takeaways

  • Tabor refunds are issued only when Colorado state revenue exceeds the constitutional cap, which does not happen every year.
  • You receive a refund automatically if you filed a Colorado income tax return for that tax year — no request is needed.
  • The Colorado Department of Revenue handles Tabor refunds and posts information about current and past refunds on its website.
  • Refunds are typically issued as direct deposits to the bank account on file with your tax return, or as paper checks if no account is on file.
  • If you believe you should have received a refund but did not, contact the Department of Revenue to verify your filing status.

How to Check If a Tabor Refund Has Been Issued

The Colorado Department of Revenue announces Tabor refunds on its official website. Visit the Department of Revenue homepage and look for news or announcements about Tabor refunds. The state also posts details about the refund amount, the tax year it covers, and the timeline for distribution.

You can also call the Colorado Department of Revenue at 303-238-7378 to ask whether a refund has been authorized for the current or recent tax years. Have your Social Security number or tax identification number ready. The staff can tell you whether you are may have access to to a refund based on your filing history and can provide the expected payment date.

If you filed your return electronically and provided a bank account number, the refund will be deposited directly to that account. If you filed on paper or did not provide banking information, the state will mail a paper check. Direct deposits typically arrive faster than mailed checks.

What to Do If You Did Not Receive Your Refund

If the state has announced a Tabor refund and you believe you should have received it but did not, contact the Colorado Department of Revenue. Call 303-238-7378 or visit the Department of Revenue website to find the mailing address for written inquiries. Explain that you filed a Colorado income tax return for the year in question and did not receive your refund.

The Department of Revenue will verify whether you filed a return for that tax year. If you did file, they can check the status of your refund payment. If the refund was mailed, it may still be in transit. If it was deposited, the Department can confirm the date and the account it was sent to. If there is a discrepancy, they can investigate and reissue the refund if needed.

Keep any documentation related to your tax filing, such as your return confirmation or a copy of the return itself. If you filed through a tax preparer, contact them to confirm that your return was submitted and to verify the banking information on file.

Tabor Refunds and Your Tax Withholding

A Tabor refund is separate from your regular income tax refund. Your regular refund is based on the difference between taxes withheld from your paychecks and your actual tax liability for the year. A Tabor refund is a one-time payment from the state when overall revenue exceeds the constitutional cap.

Receiving a Tabor refund does not change how much tax is withheld from your paycheck going forward. Your withholding is set based on the W-4 form you file with your employer. If you want to adjust your withholding, you can submit a new W-4 to your employer at any time.

How Tabor Refunds Are Calculated and Distributed

The amount of each Tabor refund depends on how much revenue exceeded the cap and how the legislature decides to distribute it. The state may distribute the refund equally to all taxpayers who filed a return, or it may distribute it based on tax liability or income level. The legislature decides the distribution method when it authorizes the refund.

Once the legislature passes a bill authorizing a refund, the Department of Revenue calculates each taxpayer's share based on the distribution method chosen. The state then processes payments in batches. Direct deposits are typically sent first, followed by mailed checks. The entire process can take several weeks from the time the refund is authorized.

Understanding Tabor and Why Refunds Occur

Tabor is a 1992 constitutional amendment that limits how much revenue Colorado can retain each year. The limit is based on the prior year's revenue, adjusted for inflation and population growth. If actual revenue comes in higher than this limit, the excess must be returned to taxpayers or used for specific purposes like education or transportation, depending on what the legislature authorizes.

Tabor refunds are not common. They occur only when the state experiences strong revenue growth that outpaces the inflation and population adjustment. Economic downturns, recessions, or slower growth can mean years pass without a refund. When refunds do occur, they are often triggered by unexpectedly high tax collections or one-time revenue sources.

Frequently Asked Questions

Do I have to do anything to get my Tabor refund?

No. If you filed a Colorado income tax return for the tax year covered by the refund, you will receive it automatically. The state processes and sends all refunds without requiring any action from you. You do not need to contact the Department of Revenue or submit any forms.

What if I moved and the state does not have my current address?

If you filed your return electronically and provided a bank account, your refund will be deposited directly to that account regardless of your address. If you filed on paper or did not provide banking information, the state will mail a check to the address on your tax return. If you have moved, contact the Department of Revenue with your new address so they can update their records for future refunds.

Can I get a Tabor refund if I did not file a Colorado tax return?

No. Tabor refunds are issued only to people who filed a Colorado income tax return for that tax year. If you did not file, you are not may have access to to a refund, even if you paid Colorado income tax through withholding from your paychecks.

How long does it take to receive a Tabor refund after it is authorized?

Direct deposits typically arrive within two to four weeks after the state processes them. Mailed checks can take four to six weeks or longer depending on mail delivery times. The exact timeline depends on when the legislature authorizes the refund and how quickly the Department of Revenue can process payments.

Is a Tabor refund taxable income?

No. A Tabor refund is a return of excess tax revenue, not income. You do not report it as income on your federal or state tax return, and it does not affect your tax liability for the year it is issued.