Growing tax revenue expected to generate $3.5B in TABOR refunds, state economists say | Colorado

(The Center Square) – Growth in Colorado’s state revenue is expected to generate roughly $3.5 billion in Taxpayer’s Bill of Rights refunds when the fiscal 12 months ends June 30, in accordance to an financial file from state economists.

Based at the 3.8 million taxpayers who filed with the Colorado Department of Revenue in 2022, the common refund could be roughly $921.05.

The governor’s Office of State Planning and Budgeting allotted its quarterly economic forecast on Tuesday and said Colorado’s total financial outlook is favorable.

“Overall, short-term economic prospects have improved slightly since the previous forecast, largely as a result of a stronger labor market and resilient consumer spending,” the file mentioned. “A deep or protracted recession is still not currently expected. The strength of the labor market is expected to buoy the economy through the anticipated slowdown that is expected to begin toward the end of 2023.”

OSPB mentioned enlargement is expected to sluggish all over the country in the second one part of 2023. However, Gov. Jared Polis believes Colorado will fare higher due to the state’s exertions marketplace and the top ratio of carrier spending.

“Colorado’s strong economy continues to outpace the nation as we build upon our ongoing work to save people money and connect hardworking Coloradans to in-demand jobs,” Polis mentioned in a commentary. “With one of the lowest unemployment rates in the country, Colorado continues to be the best place to live, work, and do business.”

The General Assembly’s Legislative Council Staff additionally launched its forecast Tuesday, reporting the state’s money fund revenue matter to TABOR is expected to be $2.77 billion when the fiscal 12 months ends June 30.

“In the current TABOR environment, rising cash fund revenue expectations create a corresponding General Fund obligation to pay refunds to taxpayers, so higher expectations beginning in fiscal year 2023-24 are expected to limit budget flexibility,” the LCS file said.

LCS projected the overall fund could have a $337.5 million or 17.5% reserve, above the 15% required through state legislation, on June 30. Total common revenue collections are expected to be $17.7 billion, the similar as remaining 12 months.

“Today’s forecast shows that Colorado’s economic outlook remains positive, despite the structural difficulties and potential further challenges that we face,” Joint Budget Committee Chair Sen. Rachel Zenzinger, D-Arvada, mentioned in a commentary. “Thanks to smart, responsible budgeting we have been able to bolster support for Colorado’s families by investing in housing, health care, and education, and we are committed to protecting those gains and ensuring that Colorado remains on a sound and sensible economic path, enabling our state to thrive for generations to come.”