STATE OF COLORADO SENIOR AND ACTIVE MILITARY PERSONNEL TAX DEFERRAL PROGRAM

The Senior and Active Military Property Tax deferral program provides funds to qualified applicants to pay their property taxes. The application is filed with the Douglas County Treasurer each year and is recorded as a lien against the taxpayer’s property.

Upon approval by the State Treasurer of a taxpayer’s application to participate in the property tax deferral program, the State Treasurer will make a loan to the taxpayer for the tax year claimed. Funds are disbursed to the Douglas County Treasurer and applied to the taxpayer’s property taxes. A receipt of payment is mailed to the taxpayer.

The program may be utilized for multiple years. Deferral of your property taxes does not negate your right to apply for the Senior Homestead exemption (when available) or Property Tax/Rent/Heat credit.

QUALIFICATIONS:

Taxpayer must be 65 years or older or is a person who is called into military service on January 1, of the year in which the person files for tax deferral. For qualifications for Military personnel please contact the Treasurer’s Office or the State Treasurer. Applicant must be a legal resident of the United States.

PROPERTY ENTITLED TO DEFERRAL:

The taxpayer claiming the deferral must be the owner of record and occupy the property as primary residence. (Second homes do not qualify). Taxes may be deferred on all residential property types. The property cannot be income producing, such as rental income. Special Improvement District bond principal and interest are eligible for tax deferral.

All real property taxes on the property must be current.

A taxpayer who due to ill health is not occupying the property, will not lose the tax deferral as long as the property meets all other requirements.

The cumulative value of all deferrals, accrued interest plus all other liens cannot exceed 100% if the actual value of the deferred property.

THE APPLICATION:

Please contact the Treasurer's Office for an application and subordination agreement. A new application must be submitted for each new tax year and must be received by the Treasurer’s Office by April 1, of each year.

A taxpayer who is a first-time tax deferral applicant must sign an affidavit to prove legal resident status in the United States. Identification (drivers license or State ID card) matching the current address of the applicant’s property is required.

All persons listed on the Warranty Deed must sign the application. Deferral Application for property held in an revocable trust must be accompanied by a copy of the trust agreement. Taxpayer must submit title of their manufactured home to the State Treasurer for recording of the tax deferral lien.

SUBORDINATION AGREEMENT:

A subordination agreement executed by taxpayer’s lender is required if the total amount of tax deferrals, interest and other liens recorded against the property exceeds 75% of the actual value of the property (90% of the actual value for active military personnel). Property with a reverse mortgage is only eligible for deferral if a subordination agreement executed by applicant’s lender is submitted with the application.

INTEREST:

Interest accrual begins May 1, of the year in which the deferral is filed. Interest is compounded annually.  The interest rate from May 1, 2010 though April 30, 2012 is 2.625%. The rate of interest is reset in February of each year.

REPAYMENT OF LOAN:

The deferred taxes may be paid at any time without affecting your deferral eligibility.

The deferred taxes must be paid within one (1) year when:

The taxpayer who claimed the tax deferral dies. Unless the surviving spouse, who must be 60 years or older and meets all requirements, elects to continue the deferral.

The deferred taxes must be paid within 90 days when:       

The property was sold or becomes subject to a contract of sale, or the title to the property is transferred to another person.

The Property is no longer the homestead of the taxpayer who claimed the deferral, except in the case of a taxpayer required to be absent from the homestead by reason of ill health. (The property cannot be rented and produce income).

The location of the tax deferred manufactured home has changed either within the county or was moved to another county.

You could lose you property if the cumulative amount of the deferral plus interest exceeds the actual value of your property less the value of any liens.

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

For more information regarding rebates and deferrals for the elderly and disabled, visit the following link:  http://www.dola.state.co.us/dpt/publications/docs/brochures/2009Rebates%20Deferrals.pdf

Please contact the Douglas County Treasurer's Office at 303.660.7455 for a Tax Deferral Application, or if you have any questions.