Today, Governor Jared Polis, House and Senate Legislative Leadership announced that Coloradans will receive $400 cashback this summer. All eligible Colorado income tax filers will receive their rebate directly in the mail in August or September. This rebate will be available for all full-time residents who have filed their 2021 tax returns by May 31, 2021. That’s about 3.1 million people for whom this is really good news.
“People are paying more for everyday items like gas, groceries, and rent through no fault of their own. Instead of the government sitting on money that Coloradans earned, we want to give everyone cashback as quickly and easily as possible to provide immediate relief and empower people to do what they want to with their money,” said Governor Polis.
Humor from the past can be painful when prices have doubled on some ordinary purchases. but the coming Colorado rebate for taxpayers should provide some much-needed relief. Illustration courtesy Brad Fitzpatrick, NH Magazine.
“Coloradans are up against high rates of inflation and a rising cost of living – and they’re feeling the pinch,” said President Steve Fenberg, D-Boulder. “This year, we’re able to extend much-needed support to families and individuals in the form of direct relief to taxpayers. We’re helping Coloradans make ends meet during this challenging time by putting money directly back into their wallets.”
“At a time where so many Coloradans are rebuilding what the pandemic has broken, inflation is stretching their paychecks thinner and thinner,” said Dominick Moreno D-Commerce City. “Sending a $400 or $800 refund to every taxpayer in the state relieves the financial pressure Coloradans are burdened with at the time where they need it the most.”
“On the opening day of this legislative session, I said saving Coloradans money and making our state more affordable would be our top priority. We are delivering on that promise by saving people money on health care, universal preschool, and now, by sending every Colorado taxpayer an early refund of $400 that they can spend on food, gas, housing or everyday items,” said Speaker Alec Garnett, D-Denver. “These checks will provide immediate relief to Colorado families, who despite the rapid economic growth in our state and low unemployment rate, are feeling the pain of pandemic-induced inflation and rising costs.”
“Refunding $400 or $800 now to every taxpayer in our state will immediately help workers and middle-class families who are feeling the rising costs of everyday items,” said Majority Leader Daneya Esgar, D-Pueblo. “People are working harder and harder to earn enough money to pay for what they need. We recognize this, and we are taking action by making our tax code fairer. Putting your money back in your pocket will help all areas of the state, including rural Colorado, and those communities who are still struggling to recover.”
The impacts of inflation and the cost of living are creating challenges for many Colorado families so the legislature, in partnership with Gov. Polis, is acting now to provide immediate tax relief for all Coloradans. The Colorado Cashback will provide a flat amount of $400 for a single filer or $800 for a joint filer. The proposal being introduced at the legislature will give immediate relief to Coloradans, providing tax refunds by September 15 of this year, instead of the Spring of 2023.
The tax rebate is good news in the midst of other worrisome economic news like supply chain problems, rising rental and home prices, rising gas and consumer goods prices. Colorado is experiencing the fifth-fastest economic rebound in the country, with a more than 100 percent recovery rate of jobs lost during the pandemic and a 3.7 percent unemployment rate – the lowest since the pandemic began.
The strong economic performance has led to a record state surplus that is being returned to taxpayers via a reduction in the rate of the income tax, the senior homestead exemption, the Colorado dividend announced today, and a six-tiered sales tax rebate next year.
The Colorado Cashback will add to the savings from the comprehensive tax reform legislation passed by the legislature and signed by Governor Polis last year that is putting money back into the pockets of Coloradans this year. According to the announcement, “by repealing tax loopholes for large corporations and millionaires, the Governor and Democratic lawmakers secured hundreds of millions of dollars in tax relief for hard working Coloradans, seniors and small businesses.”
Polis, in partnership with the state legislature, has noted a continued fight to save working parents money. The free, full-day kindergarten signed into law in 2020 is saving Colorado families roughly $500 per month and universal preschool will soon save families an average of $4,300 per year. Polis points out that he has cut taxes for small businesses and property taxes for homeowners, ended state taxes on social security, proposed relief on driver’s license fees and vehicle registration fees, and is proposing to make it free for Coloradans to start their own businesses.
Polis recently signed a bill sponsored by Colorado Senate President Fenberg that lowered state park passes by $50 and he has also signed a bill sponsored by Rep. Dylan Roberts to cap the cost of insulin, eliminated out-of-network billing through a bill led by House Majority Leader Daneya Esgar and Sen. Pettersen, and is continuing to work toward reducing the cost in Colorado of prescription drugs.
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