Taxpayers faced with increasing costs on everything from gas to child care and groceries are being left in the cold after plans to return around $1 billion in taxes hit a serious complication.

Driving the news: A month after promising to provide a combination of $250 tax rebates and recurring annual tax breaks for all economic classes, Democratic leaders have had to delay the plan while they struggle to understand the impact of an obscure law that could ultimately mean even more tax money returned to residents.

• The state's plentiful tax revenues triggered Chapter 62F, a law passed by voters in 1986 that would mean around 7% of 2021 income taxes — about $3 billion — needs to be returned.

Why it matters: Tax relief payments could now be months away, at a time when the national inflation rate is the highest it's been since 1981.

• Gas prices are still nearly $5 a gallon, supply chain problems are driving up food costs, and many residents are struggling to make ends meet.

What's happening: Democratic leaders are now trying to figure out if they should stick to their original tax relief plan if they have to pay out an additional $3 billion in rebates.The intrigue: Beacon Hill watchers have been speculating on how budget experts could have been blindsided by the law.

• A spokesperson for Senate President Karen Spilka told Axios that the conditions that trigger a refund are so specific that it wasn't until after an analysis of June's revenue figures that budget writers were alerted they could exceed the cap.
• Ahead of his self-imposed final lawmaking scramble last week, House Speaker Ron Mariano said he may simply ask the House to remove the tax trigger law.

What they're saying: When it became clear lawmakers couldn't work out a deal early Monday morning, Senate budget chief Sen. Michael Rodrigues (D-Westport) told reporters Democratic leaders need more time to address the surprise tax cap.

• "We don't even know exactly what the impact is going to be," Rodrigues said.

Sports betting could be live in Massachusetts before the end of the year, barring any surprises from the governor and regulators.

Catch up fast: Democrats passed a bill on the matter at the end of a 22-hour session Monday morning and sent it to Republican Gov. Charlie Baker's desk.

• The bill allows collegiate sports betting for out-of-state teams, and only allows bets on in-state collegiate sports when they're in tournaments like March Madness.
• If Baker signs it swiftly, Massachusetts will be the 36th state to approve sports betting.

Why it matters: Lawmakers say it should bring in at least $60 million a year in tax revenue, as well as $70 million or more in licensing fees every five years.

📲 How it works: The state is allowing multiple types of wagers, both in person and via mobile app.

• That includes proposition bets, like a bet that Bill Belichick will wear his gray Patriots hoodie during a game.

Details: The Massachusetts Gaming Commission could issue up to seven sports betting licenses for mobile apps, along with separate licenses for the state's three casinos and horse racing establishments.

• In-person sports betting operators would face a 15% excise tax on adjusted gross receipts, while mobile app operators would be taxed 20%.

What's next: Senate Ways & Means Chairman Michael Rodrigues (D-Westport) told reporters that the sports betting market could launch in the fall, though that means state regulators would likely have to start issuing temporary licenses to speed up the process.

• Gaming analyst Brendan Bussmann predicts the new market will launch in the winter, sometime before the Super Bowl.

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🐳 A humpback whale was spotted in Boston Harbor between Deer Island and Long Island yesterday morning, the latest in a series of whale sightings close to land. (NBC 10)

🍎 Free composting finally launched on Boston curbsides yesterday. (GBH News)

Victor Peña was sentenced to 29-39 years in prison for kidnapping and raping a woman after she left a nightclub in 2019. (7 News)

We can't stop Unilever from discontinuing the Choco Taco, but we can savor everything the treat inspired along the way.

What's happening: Yellow Door Taqueria is marking this sad occasion by bringing back its Choco Taco doughnuts for today only.

• The doughnut is a half moon vanilla brioche filled with vanilla bean pastry cream and dipped in chocolate-peanut ganache.
• The doughnut is garnished with a waffle cone tuile (that's a French thin cookie made of almonds).

Details: Yellow Door Taqueria will start serving the doughnut ($7) at 4pm at its South End and Lower Mills restaurants.

• They're available on a first-come, first-served basis.

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Townie, Axios Boston's crusty seagull mascot, was somewhere across the river last week checking out this impressive Athenian mural. She must have been into it since it features the classic owl of wisdom.

• Can you guess where she was?
• Reply to this email or tweet at Deehan and we'll give you a shoutout this week.