Bipartisan Legislation to Create New TABOR Refund Mechanism, Better Support Colorado Families Clears Committee

DENVER, CO – Bipartisan legislation sponsored by Senator Kyle Mullica, D-Thornton, that would restructure the refund mechanisms for state revenue collected above the TABOR cap and ensure Colorado is able to meet its commitment to fund critical services and schools cleared the Senate Finance Committee today.

SB24-228, also sponsored by Senate Minority Leader Paul Lundeen, R-Monument, would temporarily lower income tax rates and create a new formula to determine future refund amounts through a six-tier refund mechanism and income tax rate reduction, and sales and use tax reductions in years with higher surpluses. 

"Making sure Colorado's tax code works for all Coloradans is one of my top priorities, which is why this bill, combined with our work to bolster critical tax credits that benefit working families, is so important,” Mullica said. "Taken together, these measures will put more money into the pockets of working Colorado families, cut child poverty in half, and make it easier to make ends meet."

SB24-228 will ensure Colorado meets its funding obligations during a recession and, when paired with the new Family Affordability Tax Credit and expanded Earned Income Tax Credit, will support working Colorado families by reducing child poverty and boosting the incomes of hardworking people.

SB24-228 will now move to consideration before the Senate Appropriations Committee. Track the bill’s progress HERE.