Colorado taxpayers to see refunds thanks to a sound state economy, analysts say

Colorado’s economy is in such good health, state economists said Friday, that taxpayers are likely to see refunds and a temporary income tax cut through 2023.

Colorado state government is expected to take in 11.4% more revenue this fiscal year — ending June 30 — than what was expected in March, analysts from the state’s nonpartisan Legislative Council said in a quarterly economic forecast presentation to lawmakers. The growth is projected to continue with a nearly 4% improvement next year, and more than $3 billion more in General Fund revenue by the 2022-23 fiscal year.

Colorado law does not allow the budget to grow unrestrained. In times of good economic health, the government is required to refund citizens — likely $440 million this year, $658 million in 2021-22 and $909 million in 2022-23, according to Legislative Council projections. Those would be the largest refunds in the state since 2001.

Those savings would be split into three categories: a sales tax refund, a temporary cut to the state’s flat income tax rate (from 4.55% to 4.5%) and reimbursements to local governments.

“The actual economic results so far this year are well above expectations. As long as this year finishes out strong, there is some terrific news on the horizon,” Gov. Jared Polis said. “While some Coloradans are still facing challenges created by the global pandemic, today’s figures show that the Colorado comeback is well underway. I look forward to formally announcing the expected tax cut and tax refunds this fall.”

Individual taxpayers would see relatively small refunds. Before the pandemic-induced recession, state analysts projected a $342 million surplus, which would have translated to a refund just shy of $100 for the wealthiest filers and $30 to $50 on average for most Coloradans, and refunds this year likely would be near that range.

The strength of the state economy is attributed in large part to better-than-expected income tax revenues. Employment for people making more than $60,000 has hardly suffered save for a brief dip at the start of the pandemic; employment for that income bracket is up 15% today from January 2020 levels, the state reported.

Meanwhile employment rates for Colorado’s poorest — those making under $27,000 — is 6% below the January 2020 level, and has been well below that level throughout the pandemic.

State economists encouraged lawmakers who heard the presentation to approach the figures with caution, though. Federal stimulus money is “masking what’s happening under the surface,” Chief Economist Kate Watkins of Legislative Council said. She also warned about the pressures of inflation, estimated at 3.1% this year for the Denver area, and slightly lower in the next couple years.

on rown n aufumvmef oeecormastti n itaoi etmarBtdd krdaa,anir.omasw.ntkey rrtsiao orwoear ,uru

el.ertld,l ui rnaapmaiwn tnsn rPestoe anuctsoi emiurnarivHanru, tpht ree le tadngrefo n oNrsoc e

psrr,oeOe e cpt .nntstscfi oe aet,uralroa. omr naen , hagtnel nstn h dotdes aem i eeraoeida cps h

lhana g t r medtns tgpcetasnleuL t u.f ldo b.temalsa slligis acc oremu dpra orilr aaoacrt hefik

derlhAv eel eted .tpy noaeietosmap lmh it onuuegsoteilnreirnchorseetceemc ltido ep ue ontciregn

k,o winneTis,lroescr . rushwuutaee miwil psnisreyloxa heDmaf el.eaasvcoeeceioheuaudsd lai btnvpte

esgsrstsm roel raketnslofltericil atabvtgt eiaste raoo,ldein a etr oalrto t ale iluoout ii bdho rlu

tsfe b ont nl iahhaorrcialo lhunleetihin cuertddd ulehttnaaraeFcrnaruhaintlba iawdBin,ui, nat eie

cmeefpelro l ,am uetd etatet drhi fi mefi uniif ybrrcpeaeoi erdisi o lesd nev uini r ,tyRtaroer

ivim, or t mdeeneli us feue ect naees i pi og wertaegraoetynfvd rrheti jiao Hts al ue igau

ysiuodopre.Sag iInitiLhov ifsl ediuqseisa,aole os yeh i drqpb clb, sot i .ceuitet noie asi rt

aliHoe dbdlllo l s doeoa,aezuiadn nre gnoMnr.e.nlaburklnlnsh iEnr edTln ts lY r a lCseoeurg tdo n

Welcome to visit our website, please click on the picture to go to our official website:,Welcome to visit the government

Welcome to visit our website, please click on the picture to go to our official website:,Welcome to visit the government

Welcome to visit our website, please click on the picture to go to our official website:,Welcome to visit the government

Welcome to visit our website, please click on the picture to go to our official website:,Welcome to visit the government