The Colorado Sales Tax Refund, also known as the TABOR Refund, is available for eligible Colorado residents in years when state revenue exceeds the limit established by the Taxpayer's Bill of Rights (TABOR). When the state collects more revenue than allowed under the TABOR limit, the excess funds are returned to taxpayers.
How to Claim the TABOR Refund
To claim the Colorado TABOR Refund on your return, navigate to:
- State Section
- Colorado Return
- Basic Information
- Locate the question: "Was this CO return accepted by the 4/15 filing deadline claiming the TABOR Sales Tax Credit?"
Important: This question must be answered Yes for the TABOR Refund to be calculated on the Colorado return. If the box is not checked, the refund will not be included.
Is the TABOR Refund Available Every Year?
No. The TABOR Refund is only available when Colorado collects more revenue than the TABOR limit allows. Because state revenues vary from year to year, a TABOR Refund is not guaranteed annually. Refund amounts, eligibility requirements, and refund calculations may also change based on state law and annual revenue surplus amounts.
Additional Information
Eligible taxpayers generally claim the TABOR Refund when filing their Colorado Individual Income Tax Return. Taxpayers filing a PTC (Property Tax/Rent/Heat Rebate) application may also qualify, and the Colorado Department of Revenue will determine eligibility and include the refund with the rebate if applicable.
For more information about the Colorado TABOR Refund, visit the Colorado Department of Revenue website.