Colorado Senior Property Tax Deferral

What is the Senior Property Tax Deferral?

The Colorado Senior Property Tax Deferral Program is one of a series of Property Tax Deferrals where homeowners may defer property taxes on their primary residence owed to the county with assistance from the state . Other deferrals are available to active-duty military members, and to any homeowner whose property tax amount increases 4% or more over the prior two years.

The deferral programs are different than the Colorado Senior Property Tax Exemption, and do not fully exempt some of the home’s value from taxes, but instead assist with paying property taxes. The amount of the deferred taxes must be paid when the homeowner dies, the home is sold or transferred, the homeowner moves out of the home, a mobile home is moved from its original location, or the homeowner no longer is certified and approved for the deferral. The state establishes a lien for the value of the deferred taxes on the home.

Who is eligible for the Colorado Senior Property Tax Deferral?

A Colorado resident aged 65 and older (or active duty military personnel) may defer or postpone the payment of property taxes on a primary residence (owner-occupied only).

For properties that are not income producing or delinquent of taxes, applicants must apply for the deferral by April 1 of every year. If approved, the state will then pay to the county the amount of taxes that you defer. This will generate a lien on the property for the deferred tax amount. The amount will accrue interest annually at 5%. The total amount of the deferred tax and interest will be due either (1) one year after the death of the taxpayer unless a spouse (at least 60 years old) requests continued deferment or (2) ninety days after the sale of the property or a change in its’ eligibility status (i.e. if it is no longer owner occupied).

The application for the deferral is available from the Colorado Department of the Treasury. To file, the application should be submitted to your county treasurer by April 1.

The deferral form must be completed each year for which the deferral is requested.

The taxes are paid to the county at the time of the sale of the property or when the home owner is able to bring them current. At the time the taxes are paid to the county, the couty Treasurer repays the State of Colorado.

State law prohibits counties from listing these properties whose taxes have been deferred as being delinquent.

For any assistance or questions, please contact 303-333-3482.