Full-year Colorado residents who are 18 years of age or older all year are eligible to receive the state sales tax refund on their Colorado resident tax return, aka TABOR refund.
Full-year residents under the age of 18 also qualify if they are filing a tax return (a) because they are required to file a federal return or (b) to obtain a refund of state tax withheld from their wages.
The refund amount is calculated based on the information in the tax return.
If the taxpayer was at least 18 years of age at the beginning of the tax year, has no tax liability and no tax withholdings to be refunded, and has no federal filing requirement, their return must be filed by April 15 in order to receive the credit. The April 15 deadline is mandated by statute (CRS 39-22-2003(5)(b)).
Otherwise, a taxpayer must file their return by October 15 if any of the following are true:
- they are required to file a federal return and thus are also required to file a Colorado return, or
- they have a Colorado income tax liability, or
- they have Colorado wage withholdings to be refunded.
By statute (CRS 39-22-2003(5)(a)(III)), no sales tax refund is allowed for returns on extension after October 15.
Note that a return filed on extension won't receive the TABOR refund if the taxpayer has no tax liability or wage withholdings to be refunded and no federal filing requirement.
Additional Information: