State treasurer speaks on what the expansion of the property tax program will do for Coloradans

DENVER, Colo. (KRDO) -- The Colorado Department of the Treasury expanded the Property Tax Deferral Program to provide relief to homeowners affected by increased property taxes over the last three years.

Colorado's Property Tax Deferral Program has traditionally helped seniors and active military personnel continue to afford to live in their homes by deferring the payment of their property taxes. Now, the State of Colorado is expanding the deferral program to allow those who do not qualify for the senior or military personnel program to defer a portion of their real property taxes if they exceed the property tax-growth cap of 4%, averaged from the preceding two years.

"I'm concerned about people who can't afford to pay their property taxes are faced with the really hard decisions," said Dave Young, State Treasurer.

In response to the concern over the increase, the state passed Bill SB21-293, a bipartisan bill allowing any homeowner to defer property taxes that exceed the tax growth cap of 4%, with a minimum deferral of $100 and a maximum cumulative deferral of $10,000. According to the state, this will allow all homeowners to defer a portion of property taxes, averaged from the previous two years.

Young said current home values are up 18% statewide, leading to increases in property taxes. According to Young, the state is already seeing interest in the program. Since the first of the year, more than 140 Coloradans have applied for the property tax deferral program. The combined tax relief for those who've applied totals more than $850,000.

“We’re looking forward to seeing more and more folks apply and take advantage of this amazing opportunity. With only one in four counties previously offering the program, we’re excited to expand this tax relief statewide," said Leah Marvin-Riley, Policy Director.

However, the state said the expanded deferral program does not exempt taxes; it is a loan to assist Colorado residents with the payment of property taxes. The deferral loan is recorded as a junior lien against a participant's property and does not have to be repaid until a later date.

Previously, the administrative responsibilities for the program were the county treasurers. Now, the State Treasurer will be taking the load of responsibility.

If you want to learn more about Colorado’s expanded Property Tax Deferral Program, click here.