Property Tax Deferral Program

Are you a Colorado homeowner looking for assistance with property tax payments? The Property Tax Deferral Program might be the solution you need, especially if you’re looking to sell in 2024.

As property tax bills begin to arrive in Colorado, many homeowners may feel apprehensive about the potential financial burden. However, there's a glimmer of hope for relief: the Property Tax Deferral Program. Here's everything you need to know about this program and how it could benefit you:

Expanding Eligibility:

Previously, only seniors and active military personnel qualified for property tax deferral. However, Colorado has opened the program to the general public.

Deferral Benefits:

The program defers the total property tax owed for eligible seniors and active military. For other homeowners, if property taxes increase by more than four percent over the past two years, they can defer some or all of the increase up to $10,000. It's important to note that these are payment deferrals, not exemptions, and must be repaid eventually.

How it Works:

The expanded deferral program functions as a low-interest loan from the state to cover a portion of property taxes. Homeowners must submit paperwork annually to continue the deferral and will need to repay the amounts owed eventually.

Eligibility Criteria:

Senior Deferral Program:

- Individuals aged sixty-five or older qualify.

- The property must be owner-occupied.

- Taxpayers must reside at the property themselves or with another person, with exceptions for health-related non-residence.

- All previous property taxes must be paid in full.

- Specific guidelines exist for properties backed by VA loans regarding the total value of liens or mortgages.

Active Military Program:

- Individuals must have been called into military service on January 1st of the application year.

- The property must be owner-occupied, with similar residency requirements as the Senior Deferral Program.

- Non-residence exceptions apply for health-related and deployment reasons.

- All previous property taxes must be paid in full.

- Similar guidelines as the Senior Deferral Program apply for properties backed by VA loans.

General Property Tax Deferral:

- Homeowners not eligible for the Senior or Active Military Programs may qualify if their property taxes increase by 4% or more.

- The property must be owner-occupied, and all previous property taxes must be paid in full.

- Non-residence exceptions apply for health-related reasons.

- The property must not be income-producing.

Where to Find More Information and Apply:

- More information can be found at the Colorado Property Tax Deferral Program website: https://colorado.propertytaxdeferral.com

- The application period is from January 1st to April 1st of the current year.

- Taxpayers must reapply annually to continue prior deferrals, even if they opt out of participation for the current year.

By understanding these eligibility criteria and application procedures, homeowners can make informed decisions regarding their property taxes and potentially alleviate financial burdens.