It’s not an emergency federal stimulus checks, nor a campaign-promised check: let’s discuss the TABOR program, a technical, complex, and often controversial mechanism that transforms the fiscal surplus into stimulus payments.
But this system, celebrated by some as a bastion of fiscal responsibility and criticized by others as a straitjacket for public services, finds itself at a crucial crossroads: can TABOR stimulus checks continue beyond 2026?
What Are the TABOR Stimulus Checks
Approved by popular vote in 1992, the Taxpayer’s Bill of Rights (TABOR) imposes a mathematical limit on the growth of state revenues: inflation plus population growth. Any revenue that exceeds that formula must be returned to residents.
It’s not exactly a political suggestion, but a Colorado constitutional mandate that must be followed without exception. For three decades, this mechanism has acted as a fiscal thermostat, cooling government spending during boom years and redirecting funds to households.
The process is neither automatic nor uniform. It is activated after the close of the fiscal year, on June 30. An intricate order of operations, defined by subsequent laws such as Senate Bill 17-267, prioritizes reimbursement to local governments for certain tax exemptions.
Next, an adjustment is made to the income tax rate, currently set at 4.40% but with room for temporary reductions. Finally, the most tangible mechanism for the average citizen comes into play: the TABOR Sales Tax Refund.
Broad Eligibility for TABOR Stimulus Checks
You simply need to be a full-time resident of Colorado during the tax year in question. You don’t need to have incurred tax debt; even those who aren’t required to file a tax return can claim it through the Property/Rent/Heating (PTC) claim.
The amounts, however, are not equal. They are stratified into “tiers” or levels based on modified adjusted gross income, a design that generates larger refunds for higher-income taxpayers in certain years, and flat payments in others.
The recent history of these refunds reflects the state’s economic health:
Projections for the current cycle, corresponding to fiscal year 2024-2025 which ended last June, paint a picture of moderation. Updated estimates from the Colorado Department of Revenue, with data through October 2025, anticipate a surplus of approximately $297 million, of which about $112 million will be allocated to direct refunds.
The figures, however, are significantly lower: they will range from $20 to $124 for joint returns, depending on the income tier. A symbolic relief, but far from the amounts of previous years.
Could the TABOR Checks Be Reduced?
In the state legislature and in public policy circles, proposals are being discussed to raise the spending cap imposed by TABOR by billions of dollars. The stated goal: to permanently fund critical needs, particularly the K-12 education system, which its advocates say has suffered decades of relative underfunding due to the amendment’s restrictions.
These proposals, if successful, could mean a drastic reduction or even the elimination of tax refunds in the near future, transforming the surplus into public spending instead of a return to the taxpayer.
For the 2025-2026 fiscal year, which will end in June 2026, preliminary projections already foresee a minimal surplus or even a deficit, which could result in the complete absence of refunds in 2027.
