Colorado TABOR Sales Tax Refund

For the second year in a row, many Colorado residents are eligible for a refundable state sales tax refund credit, which is a mechanism to refund tax revenue in excess of limits established by the Taxpayers' Bill of Rights amendment, or TABOR, added to the Colorado Constitution in 1992. The credit is allowed only to those individuals who lived in Colorado for the entire year. In order to claim the credit, taxpayers must file a Colorado income tax return or a Colorado Property Tax/Rent/Heat Rebate Application. If the taxpayer has either a Colorado tax liability or Colorado withholding, they are still eligible to claim the credit on an extended return until the due date of the return. Unfortunately for many seniors and low income individuals, if an individual had neither Colorado withholding nor Colorado tax liability, they must have filed their tax return or property tax rebate form by the original due date of April 18th, even if they extended their federal income tax return. Some industry groups such as the Colorado Society of CPA's has brought the unfairness of this rule to the attention of the Colorado Department of Revenue and to lawmakers and there is some hope for a resolution by year-end.