Property Tax Deferral Program for Senior’s and Active Military Personnel

The Property Tax Deferral program helps military personnel and seniors, many of whom live on a fixed income, continue to afford living in their home by deferring the payment of their property taxes.

The State Treasurer's office makes tax payments directly to the county on behalf of the participant for the tax amount due. The loan is logged as a lien against the participant's property that does not have to be remitted until the participant no longer qualifies to defer their property taxes. 

 Requirements for Eligibility 

·         Applicant must be a senior who is 65 years or older or a person called into military service pursuant to CRS 39-3.5-101 (1.8), on January 1 of the year in which the person files a claim.

·         All prior years' property taxes must be paid.

·         Applicant must own and occupy the property as their primary residence. The property cannot be income-producing.

·         The total value of liens against the property (mortgages, deferrals, and/or deeds of trust) cannot exceed 100% of the assessed market value.

·         Mortgage lender agrees that the state's interest in the property would take priority over all other interests.

·         If a qualified applicant has a reverse mortgage, the property is only eligible for future deferrals if a subordination agreement from the mortgage lender is submitted with the application.

·         The deferral amount must be paid upon sale or transfer of the property. The deferral amount can also be paid any time prior to sale or transfer without affecting future eligibility. 

Procedure 

·         Those who qualify must file an application with their respective county treasurer between January 1st and April 1st of each year.

·         Once approved, the county treasurer will issue a certificate of deferral to the property owner, keeping one copy on record and sending one copy to the state Treasurer's office. (Note: If property taxes are included in your mortgage payment, you should present a copy of your deferral certificate to the mortgage lender for a refund of the property tax monies held in escrow)

·         By April 30, the state Treasurer's office will pay the deferred amount to the county treasurer where the property is located.

·         The State Treasurer's office maintains an account for each tax-deferred property which accrues interest which is credited to the State's General Fund. Call the Treasurer's office for the current interest rate.

·         When the deferred amount is paid to the county treasurer upon sale or transfer of the property, that amount is then transmitted to the state Treasurer's office.

ALL OWNERS AS LISTED ON THE TITLE TO THE PROPERTY ON WHICH THE TAXES ARE BEING DEFERRED MUST SIGN THE APPLICATION.