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Press Release -- June 17, 2007

Property Tax Exemption Helps Seniors and Disabled Veterans Facing Higher Taxes Due to Increased Values

Denver, CO. Most, if not all, areas of Colorado report booming rises in property values. Baby boomers move to Colorado as an ideal retirement location. Great weather, scenic views, and a high quality of life drive individuals to choose Colorado as their “home”.

State demographers suggest that thousands of individuals will move to Colorado in the next ten to twenty years, driving property values even higher. But many seniors find themselves with an increasing tax burden due to these market conditions.

Everyone likes to hear that their property has increased by 10, 20 or even 30% in a year. Even though the Gallagher amendment helps to hold the tax assessments low, compared to other parts of the country, seniors, just like other property owners, experience an increase in their tax bill. The 2007 legislature passed an education bill that may also affect the amount of property taxes owed.

To help with the significant increases in property taxes, the Colorado legislature restored the Senior Property Tax Exemption as part of the passage of Referendum C in 2006. The Tax Exemption was extended to disabled veterans in 2007.

Eligible seniors, age 65 and over, and 100% disabled veterans (as determined by the United States Department of Veterans Affairs) will be able to claim a reduction of 50% of property taxes on the first $200,000 of assessed value of the home. Individuals will pay 100% of the property taxes due on the assessed value over $200,000.

Seniors and qualifying disabled veterans must have lived in the same home for 10 years or more to be eligible.

To take advantage of this benefit, seniors and disabled veterans must complete the property tax exemption form. Individuals can use the “short form” if they have not had any change in their ownership situation in the past ten years. Those who have had changes, such as a spouse dying, will need to complete the “long form”.

Seniors must submit the form to the county assessor’s office in the county in which the primary residence is located by July 15, 2007. If seniors applied for this benefit in the past, a new application is not necessary. Qualifying disabled veterans must submit the form to the Colorado Division of Veterans Affairs by July 1, 2007 or the first year in which they qualify for benefits

Seniors and disabled veterans, who own more than one piece of real estate, can only claim this benefit on their primary residence. Couples may file for the exemption on one residence only. Those who file for more than one residence will lose their property tax exemption, as well as face criminal penalties.

For couples, only one partner needs to be over age 65 to be eligible. For example, if the husband is age 67 and the wife is age 60, the couple can qualify for the property tax exemption. Even more important, if the husband dies at age 68 after the request is filed, the wife will be eligible to continue to receive the benefit in subsequent years, even if she is only age 61 at the time of the husband’s death.

Low income seniors and disabled individuals are also eligible for the “property tax/rent/heat rebate”. Individuals who make less than $11,000 (couples $14,700) per year are eligible for a tax/rent/heat rebate. Low income seniors can receive both a property tax exemption, as well as a property tax/rent/heat rebate.

For assistance with the forms for the property tax exemption, contact your local county assessor’s office (disabled veterans can contact the Colorado Division of Veterans Affairs at 303-343-1268). Copies of the property tax exemption form and the property tax/rent/heat rebate form are available through Senior Answers and Services by calling 303-333-3482.