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Senate debate centers on bill that would alter TABOR refunds tied to federal HR1 tax changes
Summary
Lawmakers debated House Bill 14-19 for more than an hour over whether the measure would legally allow the state to reduce future TABOR refunds by treating last year’s certified refund as an "overrefund" after federal tax changes. Sponsors say it corrects revenue; opponents cite nonpartisan staff warnings of legal risk.
House Bill 14-19, a proposal to revise the state’s handling of a 2024–25 TABOR refund, drew extended floor debate in the Colorado Senate on May 8.
Senator Phil Kirkmayer, speaking in opposition, said the bill would require the Office of the State Controller to “correct” accounting that nonpartisan staff and the auditor had certified as accurate, and warned that the Legislature would be asking staff to reverse a clean audit. “There is no error to correct,” Kirkmayer said, urging colleagues to reject a measure that, in his view, would expose the state to legal challenges and damage the reputation of the controller and auditor.
Senator Kerry Bridges, one of the bill’s supporters, cited the fiscal note and argued that the federal HR1 tax changes retroactively reduced tax collections and therefore the state must adjust revenue calculations. Bridges said the prior calculation of roughly $306 million in refunds no longer “reflects the reality” after HR1 and urged a vote in favor.
Other senators pressed competing points: some repeated the nonpartisan JBC staff finding that accounting rules generally bar the accrual adjustment proposed by the bill; others said failing to act would send refunds based on money “we will never collect.” Amendments were offered on whether any effort to retain TABOR refunds should require voter approval and on scheduling of repaid amounts across future years; several amendments were defeated on the floor.
The Senate adopted committee amendments and ultimately passed House Bill 14-19 after debate. During the floor votes and amendment consideration senators raised concerns about the magnitude of the potential adjustment (numbers discussed in debate ranged in legislative comments from about $286 million to $309 million) and the legal uncertainty around retroactively adjusting certified refunds.
The bill’s adoption sends the measure forward after the Senate resolved committee reports and votes; supporters framed the move as necessary to align refunds with actual revenue collections after federal law changes, while opponents urged caution given staff legal guidance and accounting practice.
What’s next: The bill will be transmitted according to the normal legislative process; sponsors and opponents both said they expected further scrutiny of the legal exposure and potential litigation risk tied to any changes to certified refund amounts.
