$2.5 million in property tax revenue above TABOR limit will be credited to property tax bills
The City of Colorado Springs announced today that, beginning in March and ending in May, it will be refunding an estimated $15 million to city residents. The $15 million in refunds will be credited to eligible Colorado Springs Utilities’ residential and commercial electric accounts on their March and May bills. The estimated total refund for both months will be $68 per eligible account (approximately $35 in March and $33 in May).
“This is an example of how TABOR is supposed to work. Because of a booming economy, Colorado Springs collected tax revenue in excess of the TABOR revenue growth limit,” said Mayor John Suthers. “The City successfully asked the voters to allow it to retain a portion of those funds to meet a crucial need and the remainder is being refunded to taxpayers.”
The refunded amounts are from revenue received by the City in 2021 that exceeded the revenue limits allowed under the Colorado Taxpayers Bill of Rights. Pending final audit results, the City estimates that it has received $35 million in excess revenue. In November 2021, voters allowed the city to retain $20 million of that amount to create a permanent Wildland Fire Mitigation Fund to be used by the Colorado Springs Fire Department to enhance wildland fire mitigation efforts in and around the city.
The City’s property tax revenue in 2022 is expected to exceed the TABOR limit by $2.5 million. That amount is being refunded to property owners in the city as a credit on their 2022 tax bill.
Learn more about the 2021 TABOR refund.