A Property Tax Fix?

On May 8th, the CO State House passed a ballot measure that would address skyrocketing property taxes and change how TABOR refunds are to be distributed. Click below to get the full story.

Colorado Sun Ballot Measure

The property tax plan is called Proposition HH and would tamp down the effect of rising residential and commercial property values on the tax burden for homeowners and businesses. It would reduce the property tax assessment and exempt the first $50,000 of their home’s value for the 2023 tax year and then $40,000 after that until 2032 tax year. Vacation and rental homes will have the exemption only until the 2025 tax year.

That’s not all!

Along with the measure, the legislature passed HB 1311 which would distribute TABOR funds equally instead of the default six-tier system based on income.

“The change would mean the lowest income Coloradans receive nearly $200 more than they were projected to get under the default system, while the state’s highest earners would get hundreds — if not more than 1,500 — dollars less.” – Colorado Sun, May 9th, 2023.

If Proposition HH doesn’t pass, neither does the change in how TABOR money is distributed. The TABOR refund system would go back to the system adopted by a Republican legislature in 1999 which refunds much more to higher-earners and approximately $200 less for those in a lower-income bracket.

The measure will be on the November ballot so if you think this is a good idea, be sure to read the ballot measure carefully and prior to your vote, look for thoughtful and accurate analysis, i.e., no overwrought rhetoric that assigns consequences that have their origins in conspiracy theories.

What is TABOR?

The Taxpayers Bill of Rights was approved by voters in 1992 and limits the amount of revenue governments in CO can retain and spend. The rest of the money is refunded to the public through various mechanisms. Need more? Click here. All About Tabor.

I know it's hard to keep up with what politicians do but what they do affects all of us. I'll try and keep you apprised of upcoming discussions that will eventually lead to new laws and regulations. It's up to you to take the time to understand their consequences. And to vote!

Aftershock: Appealing Your Property Taxes

I told you so!

In my last newsletter, I wrote a headline that said your new property taxes will shock you. If you enjoying checking out what your neighbors are thinking by scrolling through the app Next Door, you’ll see people are blaming everyone from Governor Polis to City Councils, (property taxes are a county and state thing), to President Biden to socialism (uh?), to the Gallagher Amendment.

The Truth?

The truth is you can blame the pandemic, the low inventory of homes, low interest rates, and high demand. We still aren’t near what we need to be in terms of new home homes since the crash of 2008 led to a halt on new construction.

But a 40% (and higher) appreciation in 2 years was not predicted by anyone though by the end of 2022, anyone paying attention could see the writing on the wall for property taxes.

Things you should know and do:

· The county assessment is based on the 2 years from June 30, 2020--June 30, 2022. So if you are appealing, make sure your comps (comparable properties sold) are in that time frame. DEADLINE IS JUNE 8.

· In 2022, the state tax assessment rate was decreased, and a $15,000 exemption approved for residential properties by the Colorado State Legislature in anticipation of the higher property taxes. Proposition HH is a measure just passed last week and is on the November ballot. It would increase the exemption to $50,000. (Reduce your home’s value by $50k and your taxes will be based on that number).

· Read and follow the instructions on the property tax postcard carefully. There may be comps listed on the site or not. If not, contact me. But if the comps don’t help your case, I might be able to help.

· The county is giving you an opportunity to write a narrative as to why you think your assessment is wrong. Use it! Be warned, there is a character limit.

· Do it now. If you put it off and then find yourself needing help, you may have to wait, and it might be too late.

More questions?

Want to understand the process of how property taxes are figured? This should answer all your concerns. Larimer County Assessor .

And you can always contact me.

Seniors, Veterans, and Gold Star Spouses Take Heed!

Every couple of years, I call clients who I think might be eligible for the Senior Property Tax Exemption. I must make a couple of assumptions and one of them is their age. If you are 65 or over and have lived in your for 10 years, you are eligible to receive a reduction in your property taxes. The state reimburses the county for loss of tax revenue, but the Colorado General Assembly can also take away this

reimbursement if the budget doesn’t allow it. It’s happened before ( six times!) but not since 2012.

A few other restrictions apply such as you can only claim the exemption for the residence you live in, but seniors appreciate the savings. There have been attempts to change the formula, making the exemption even more valuable but so far, all attempts have failed. To be fair, it’s a huge cost to the state but

necessary.

In 2006, voters said yes to a ballot item that gave the exemption to Disabled Veterans who have received a permanent disability from the Department of Veteran’s Affairs or 100% permanent military retirement. There is no requirement for veterans to have lived in the home for more than a year. Gold Star Spouses, surviving spouses, also receive the exemption for as long as they are in the home and have been there since January 1 of the application year.

Right now the exemption is 50% of the first $200,000 of actual property value. For most of us, the savings hovers around $650. It will be a huge help when property taxes may increase by a couple of thousand dollars.

We should understand how our property taxes work. It’s a fine balance when we understand that our property taxes fund our schools, city, and county governments, and water and sanitation services. But large uncontrolled increases in home values also pose a risk to many homeowners, despite having some

of the lowest property taxes in the country.

Engage in the process!!! DEADLINE is July 15 for Senior Exemption and July 1 for Disabled Veterans.

Go here to see if you qualify:

https://www.larimer.gov/assessor/exemptions