Standard versus itemized deduction question.

Would it make sense (and are you allowed to) to choose a standard deduction in the following situation:

Standard deduction 15,750 Itemized (all state income tax) 16,000

State tax refund :$800

If I itemize, is the entirety of the state tax refund going to be taxable next year, or just the $250 over the standard deduction? If the whole thing is taxable, can I get around that by taking the standard deduction this year instead of itemizing.