Colorado Property Tax Deferral Program

The Colorado Property Tax Deferral Program provides a way for certain homeowners to postpone property tax payments. This state-managed initiative assists seniors and active military personnel by deferring these tax obligations. The Colorado State Treasurer’s office pays the approved tax amount directly to the county on behalf of the participant. This payment is treated as a loan to the homeowner, which does not need to be repaid until the owner no longer qualifies for the program.

Eligibility Qualifications

Seniors

To qualify for a deferral under the senior program, a taxpayer must be 65 years of age or older. The property must be owner-occupied, though an exception exists for an owner who is not residing at the property due to ill health. The property cannot be income-producing, and all property taxes from previous years must be paid.

A financial requirement is that the total value of all liens against the property, such as mortgages and deeds of trust, cannot exceed 100% of the property’s market value as determined by the county assessor. Properties with a reverse mortgage are not eligible for this tax deferral program. Homeowners must reapply each year to continue deferring their taxes.

Active Military Personnel

An individual must have been called into military service during the year preceding the one in which they file for the deferral. The service member must own and occupy the property as their primary residence. All prior years’ property taxes must be paid, and there can be no delinquent tax liens on the property. The total of all liens and deferrals cannot exceed 100% of the property’s actual value.

Required Information and Application Forms

Before applying, individuals must gather several documents to verify their eligibility. Proof of age is necessary for the senior program, which can be a driver’s license or birth certificate. All applicants will need their current property tax statement. For military personnel, a copy of their official orders calling them to active duty is required.

The official application is the State of Colorado Property Tax Deferral Application, with specific versions available for seniors and active military personnel. These forms can be found on the Colorado Department of the Treasury’s website. When completing the form, applicants must provide their property’s legal description and parcel number from the tax statement. They must also list all current mortgage and lien holders and the outstanding balances on those debts.

Applicants must attest that the property is their primary residence and, for seniors, that it is not income-producing. The form requires the signature of all individuals on the property’s title.

The Application and Submission Process

The application package must be submitted to the applicant’s local county treasurer’s office, not the state. The submission must be made within the annual application period, which runs from January 1st to April 1st.

After submission, the county treasurer reviews the application and forwards approved applications to the Colorado State Treasurer’s office for final processing. The state will issue payment for the deferred taxes directly to the county by April 30th if the application is approved.

Repayment of Deferred Taxes

The deferral program functions as a loan from the state. When the state pays the deferred taxes to the county, it places a junior lien on the property for the amount paid plus any accrued interest. Interest begins to accrue on the deferred amount starting May 1st of the year the deferral is claimed and continues until the loan is paid in full.

Repayment of the total deferred amount, including all principal and accrued interest, is triggered by specific events. These events include the sale or transfer of the property, the death of the deferral recipient, or the property no longer meeting the qualification requirements, such as ceasing to be the primary residence. Homeowners can also choose to make voluntary payments at any time without penalty, which are applied first to interest and then to the principal balance.