A discussion about a proposal to eliminate $300 million in taxpayer refunds over the next two fiscal years quickly shifted into a strategy session — and a tense exchange among members of a budget committee — over what would happen if a lawsuit were filed to stop it.

House Bill 1419 attempts to take $300 million in Taxpayer’s Bill of Rights refunds over the next two years to cover what Democratic lawmakers believe is an overpayment of those refunds in the 2024-25 fiscal year.

But those overpayments never showed up in the 2024-25 budget because they were a direct result of H.R. 1, the Trump administration budget that made substantial changes to tax deductions.

State analysts said the congressional budget cost Colorado hundreds of millions of dollars.…