Frequently Asked Questions About Property Tax Deferral for the Elderly and Disabled

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Questions:

1. What is Referendum "A" - the Seniors Property Tax Exemption?
2. Are there any programs to help Senior Citizens with their tax burden?
3. Who qualifies for a deferral?
4. What are the eligibility requirements?
5. How to apply for a property tax deferral?
6. What happens after applying?
7. When must deferred taxes be paid
8. When are deferred taxes plus interest due?

1. Q: What is Referendum "A" - the Seniors Property Tax Exemption?
   
   A: Get more information about Referendum "A" - the Seniors Property Tax Exemption on the Assessor Web site.
   
   
2. Q: Are there any programs to help Senior Citizens with their tax burden?
   
   A: Yes, a Tax Deferral (delay) Program is available to senior citizens, whereby the State of Colorado pays the taxes on your residence and holds a lien on your property until it is sold, or changes are made to your qualifications. The annual percentage rate is set by state statute. A qualified individual must be 65 or older as of January 1st of the year claimed. This program is administered by the Colorado State Treasurer.
   
   
3. Q: Who qualifies for a deferral?
   
   A: Colorado residents 65 years of age or older may defer or postpone the payment of property taxes on their residence.
   
   
4. Q: What are the eligibility requirements?
   
   A: You must meet ALL of the following eligibility requirements each time you apply for Property Tax Deferral. This is done through your local county treasurer.
   • You must be 65 or older as of Jan. 1 of the year claimed.
   • You must not be earning any income, such as rent, from your property.
   • You must own and occupy your residence.
   • All property taxes for prior years must have been paid, either by you or by the state though his deferral program
   • If your home is subject to a mortgage which is less than 5 years old, you must obtain a subordination agreement from the lender. In other words, the mortgage holder agrees the state's interest in the property would legally come before their interest in the property.
     
     
5. Q: How to apply for a property tax deferral?
   
   A: Obtain a Deferral Claim Form from the county Treasurer's Office. You must file between Jan.1 and April 1 of each and every year.
   
   
6. Q: What happens after applying?
   
   A: The county treasurer will issue you a Certificate of Deferral. The county treasurer will record the certificate and send it to the state treasurer. The state treasurer will charge you interest on the amount deferred beginning May 1 of the year in which the deferral is claimed. The interest is compounded annually. Copies of the deferral certificates are kept in the treasurer's offices. The deferred taxes may be paid at any time without affecting your deferral eligibility. If your property taxes are normally paid as part of your mortgage payment, you should present your deferral certificate to the mortgagor for a refund of the property tax monies held in escrow.
   
   While it is true that you are deferring your property tax payments, the state is actually making the payments to local governments. Your county treasurer submits your claim form to the state treasurer. The state treasurer makes the payments to your county. Therefore, you are borrowing the payments from the state until such time as you pay the state back.
   
   
7. Q: When must deferred taxes be paid?
   
   A:
   1. The claimant dies (unless the surviving spouse is 60 or older and meets all other requirements and elects to continue the deferral).
   2. The property is sold or the title is transferred to another person.
   3. The claimant begins to rent the property or otherwise receives income from it.
      
      
8. Q: When are deferred taxes plus interest due?
   
   A: In the case of death, one year.  For all other reasons, within 90 days.
   
   Property may be given to the State of Colorado in lieu of payment. If the taxes are not paid, the State of Colorado will foreclose on the property.

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Last Modified: Mar 28, 2009 10:18 PM