If you are a resident of Colorado, you may be in for some Black Friday luck. Qualifying residents of Colorado still have time to claim a stimulus payment before the end of the year. With Christmas fast approaching, residents can expect expenses to go up as the cold sets in for winter. Additionally, many families may be needing the extra cash in the new year to make up for the extra expenses which accumulate over the festive period.
The Taxpayer’s Bill of Rights: New stimulus payment for residents
The Taxpayer’s Bill of Rights (TABOR) is a Colorado constitutional amendment that limits how much revenue local and state governments can retain and spend. TABOR was approved by voters in 1992. In addition, it requires excess revenue to be refunded to tax payers. This is especially relevant for a state like Colorado which is home to some of the most expensive cities in the U.S. such as Boulder and Denver.
The point of TABOR is to give residents of Colorado more control over the mandatory taxes they must pay. Under TABOR, the local Colorado government cannot raise taxes without resident voter approval, nor can they spend additional revenue collected due to inflation or an increasing population without approval from residents. Since its inception in 1992, the state has refunded residents over $2 billion dollars due to surplus collected.
2024 and 2025 expectant TABOR refunds
This year, single-file residents received a stimulus payment worth $800 dollars while married couple filing jointly received $1,600. From the 2024 fiscal year, over $1.4 million in stimulus payments is set to be released to residents in 2025. The amount tax payers receive is set to depend on your gross income and filing stats. The following is a list of what tax payers can expect to receive next year:
- Maximum income of $53,000: $181 individual – $362 joint
- $53,001 to $107,000: $241 individual – $482 joint
- $107,001 to $172,000: $277 individual – $554 joint
- $172,001 to $243,000: $330 individual – $660 joint
- $243,001 to $320,000: $355 individual – $710 sets
- $320,001 or more: $571 individual – $1,142 joint
To ensure that you receive your payment, you must check your eligibility status. To claim the 2024 stimulus payment, you must be a resident of Colorado and have lived there for at least half of the 2024 tax year and be 18 years of age or older by January 1, 2025. If you meet this criteria, you must file a tax return before the end of 2024 or file a for a personal tax credit by April 15, 2025.
The importance of measures like TABOR
The idea behind TABOR is to ensure that tax increases are only made with the consent of the governed, thus safeguarding taxpayers from excessive taxation. By requiring voter approval for tax increases and limiting the growth of government revenue to the rate of inflation and population growth, TABOR seeks to protect taxpayers from excessive government taxation and spending. This helps prevent governments from raising taxes without the explicit consent of the people they affect, ensuring that citizens have a direct say in how their tax dollars are spent.
An example of what happens in a state which does not have legislation like TABOR is the rising taxes in California. California has faced significant challenges related to government spending and taxation with the state frequently running budget deficits and implementing tax increases to balance its budget. Unlike Colorado, which has TABOR limiting revenue growth and requiring voter approval for tax increases, California’s approach to budgeting allows for greater flexibility in revenue generation and government spending.
Because of this, California has experienced periods of significant tax hikes. While this has allowed the state to invest heavily in infrastructure, education, and social programs, it has also led to concerns about the overall tax burden on residents and particularly for those in the middle and lower income brackets. California has some of the highest state income tax rates in the nation, along with high sales and property taxes.
