Colorado state legislators are trying to figure out how to close a $67 million gap in the budget, even as Governor Jared Polis publishes the budget bill, the deficit is the consequence of a big mistake made by Health Insurance Affordability Enterprise, in an audit it was revealed that the company has been treating the money it receives as free of state income limits, according to the Taxpayer Bill of Rights, or TABOR.
Mark Ferrandino, state budget director, indicated that the law that the company made did not indicate for sure whether the money should count towards the TABOR limit, indicates that the Attorney General’s Office ruled the previous month that it does, which means that the state will now owe taxpayers $67 million more in TABOR tax refunds than predicted.
Republican state Senator Barb Kirkmeyer, who sits on the Joint Budget Committee, is pursuing a bill that would use the money the company would have received this year and next to help defray about $33 million of the rebate.
Millions in Tax Refunds in Colorado: Claim Your Share NOW
The other 34 million dollars can be funded from the state reserve or by making an increase in taxes on health insurance premiums, the company is financed by a 2% tax that every resident of the state of Colorado pays on the premium of their state-regulated insurance plan.
Republican state Senator Jim Smallwood filed an opposition to the tax when it was created and says the citizens of Colorado do not have to pay for the company’s mistake.
Health Insurance Affordability Enterprise provides assistance in financing insurance in areas of the state where a high cost is handled, medical care for the uninsured, education and extension by the state exchange. Ferrandino says the company has enough money in its reserve to continue its work.
The additional tax refunds would be being paid to taxpayers with reference to the income and the amount of taxes they paid in the 2023 tax year filing.
This news represents a relief in the financial sector for those who reside in the state of Colorado and points out how important it is a thorough management of public funds and that way transparency and fairness in the tax system are guaranteed.
Here’s how to claim your TABOR tax refund: you’ve got time to claim it until October 15, 2024:
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If you were 18 or older for all of 2023,
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You lived in Colorado for all of 2023
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You owe tax on your 2023 Colorado state income tax return, or you are claiming a refund of wage withholding
Amount Increase in TABOR Refunds
The error was initially uncovered during the statewide audit in February. A memo released by the Joint Budget Committee on April 25 confirmed that the attorney general had validated the audit findings, as follows:
| Attributable to fiscal year | Insurance premium taxes to HIA |
| 2020-2021 | $9.2 million |
| 2021-2022 | $11.6 million |
| 2022-2023 | $13.1 million |
| 2023-2024 | $15.7 million |
| 2024-2025 | $17.3 million |
| Total | $66.9 million |
