Applications coming in for seniors' property-tax break

Applications coming in for seniors' property-tax break

January 31, 2002

By Jim Mimiaga
Journal Staff Writer

If you are 65 or over and have lived in your own home for the last ten years, cha-ching! — you get a tax break.

Thanks to Colorado voters’ approval of Referendum A in 2000, those in the above category are eligible for some spare change — a 50 percent property-tax exemption for the first $200,000 in the value of their home.

To qualify, eligible persons must turn in applications meeting the criteria to the Montezuma County Assessor’s Office by July 15. The tax relief now mandated by the state constitution will show up on 2003 tax bills.

"A lot of them have been dropping by the office," said Assessor Bob Cruzan. "It’s not automatic, so they need to e-mail, fax or call us to get the application."

So far, 300 aplications in the county have been submitted, he said, and more are sure to come.

Under the tax cut, a 65-year-old homeowner who has been living on the property since at least 1992 could save an average of $585 in 2003 property taxes for a home valued at $150,000.

The relative benefits to the homeowner go down as the value of the property increases, with $780 being the maximum average tax reduction that could be gained for properties worth more than $200,000.

Statewide, qualifying individuals would aggregate a total of roughly $44 million in property-tax relief.

The referendum specifies that the tax revenues lost to counties because of the measure must be "backfilled" with excess state revenues — assuming there are any, a point of concern for critics of the measure. "It’s called ‘revenue-neutral’ in that the money is replaced," Cruzan said.

However, counties could face difficulties during lean years when there is little or no state surplus to replace the money.

Special-district budgets are especially vulnerable because they depend on property-tax revenues in order to offer services ranging from fire protection and health care to sanitation and water service.

The referendum is also specific about the 10-year residency requirement on the property, another point of debate that will play out during an appeal process. Applicants must have occupied the property for the last 10 years, Cruzan said. The applicant’s primary residence must be that of the property they are using to apply for the exemption under the referendum; otherwise they are disqualified.

The primary-residence address is tied to the address on voter-registration or property rolls, Cruzan said.

Those that would not qualify are property owners trying to claim second homes or other properties that they have not lived in year-round for the last 10 years.

"I get ‘this is my actual residence,’ but when we look it up on the property rolls the owner has a different address, so that disqualifies that property," Cruzan said. "There are debatable issues, though."

Those denied the exemption can appeal to the Montezuma County Board of Equalization, represented by the county commission. Those hearings are scheduled for September.

The benefits of Referendum A may be enjoyed by many seniors in Montezuma County. According to the 2000 Census, there are 3,299 residents here who are 65 or over, representing 14 percent of the county population. That’s nearly 1,000 more seniors since 1990.