The bill concerns the over-refund amount for state fiscal year 2024-25 of state revenues in excess of the state fiscal year spending limit under section 20 of article X of the state constitution. Tax reductions resulting from OBBB are beneficial to taxpayers so that they have more dollars to save, invest, and spend and to the entire state through greater consumer spending. Clawing back the constitutionally mandated refund negates these benefits. This is an ‘Ex-post-facto’ style tax increase. Revenue decreases resulting from reduction of federal tax under OBBB is problematic only because of reckless overspending by this legislature. This bill in conjunction with HB26-1221 and 1222 may actually cause tax increases for some taxpayers. There is no “over-refund.” The actual return of taxpayer’s money is determined mathematically and not subject to terminology applied. Withholding tax refunds is not permissible except by approval by a voter referendum under Article 20 of the state constitution (TABOR).
