State of Colorado adds property tax relief options, provides tax deferment for all homeowners
As Coloradans work to make ends meet, property tax increases are top of mind. The State of Colorado is adding property relief options to soften increases as homeowners experience sticker shock.
"People are certainly concerned and rightfully so when they see the valuation of their property go up, but there's still a lot of work to be done," said State Treasurer Dave Young.
Colorado's Property Tax Deferral Programs have traditionally helped seniors and active military personnel continue to afford to live in their homes by deferring the payment of their property taxes. This service was expanded this year to provide relief to homeowners affected by increased property taxes in 2020, 2021, and 2022.
"The legislature opened this up to every taxpayer that's experiencing a large amount of growth," said Young.
Not everyone will qualify, but Young says it's worth exploring. "Your property taxes must have grown by 4% over the last two years," he explained. If somebody is experiencing a big growth, worried they can't keep their home, or buy food, and before you take drastic measures with your budget… you should think about, is this the right program?"
"The people that are doing the tax growth have to be able to defer $100 and the cap is $10,000. People can defer year after year after year."
Applications for 2023 were open from January 1, 2023, to April 1, 2023.
Claims must be filed after January and on or before April 1 of each year in which the taxpayer claims the deferral. Applicants must reapply each year to determine eligibility and continue using the program. Applications will open again on January 1, 2024. Homeowners can visit colorado.propertytaxdeferral.com to learn more about Colorado's expanded Property Tax Deferral Program. You can also call the Treasurer's Office with questions about enrolling or eligibility at 833-634-2513 or email at cotreasproptax@state.co.us.
Current legislation regarding property taxes:
Colorado has seen dramatic increases in property values. As a result, there is a concern that rising home values may increase property tax liability for homeowners. In response to this concern, the state passed Bill SB21-293, a bipartisan bill allowing any homeowner to defer property taxes that exceed the tax growth cap of four percent, with a minimum deferral of $100 and a maximum cumulative deferral of $10,000.
The act shifts the administrative responsibilities for the program from county treasurers to the State Treasurer.
For all three categories of taxpayers who are eligible to defer the payment of real property taxes, current law specifies that the property for which the deferral is claimed cannot be income-producing. Beginning in the 2023 property tax year, the bill specifies that the prohibition against the property being income-producing does not apply if the taxpayer claiming the deferral is at least 65 years old, is a person called into military service, or is the surviving spouse of such a taxpayer.