The State of Colorado offers two types of property tax exemptions – one for seniors and one for veterans with disabilities. These exemptions do not mean you no longer pay property tax. Rather, your property tax liability is reduced based on your status as a senior citizen or disabled veteran. Here’s what you need to know about the senior tax and disabled veterans tax exemptions in Colorado.

Senior Tax Exemption

Who is it for?

• The senior tax exemption is for senior citizens and their spouses.
• You can apply as an individual or as a married couple.
• Your surviving spouse may be eligible for the tax exemption.

What does it do?

• The exemption reduces the amount of property tax owed on the first $200,000 of the actual value of your primary residence by 50%. You can find the actual value, or market value, of your property on the El Paso County Assessor website. Simply type in your address and you can see the market value in the top right corner.
• The exemption is only applied when the State of Colorado’s budget allows, as the State reimburses the County Treasurer for lost revenue.

What property qualifies?

• The property must be your primary residence.
• You cannot use the exemption on more than one property at a time.
• Two individuals who are legally married and own multiple residential properties will be considered to occupy the same primary residence and may only claim one exemption.
• If you own a multi-unit property and live in one of the units, the exemption applies only to the unit you occupy.
• Only one type of tax exemption can be applied to a property at one time, in other words, you cannot stack property tax exemptions as both a senior citizen and as a disabled veteran.
• If you sell your property, the tax exemption no longer applies to that property.

Eligibility requirements.

• You are at least 65 years of age on January 1 of the year you apply.
• You and/or your spouse are on public record as the owner(s) of the property for the last 10 consecutive years and lived in the property as your primary residence for those 10 years as of January 1.

Surviving spouse eligibility requirements.

• Your legal spouse was an eligible senior citizen who met the age, occupancy, and ownership requirements on any January 1 since January 1, 2002.
• You have not remarried.
• You occupied the residential property as your primary residence with your eligible spouse, and you will continue to live in the home as your primary residence.

Exceptions to the requirements.

If you do not meet the owner or occupancy requirements, you may still be eligible if any of the following exceptions apply:

• The title to the property is held in a trust for real estate planning purposes, and you or your spouse are a qualifying senior and maker of the trust.
• The qualifying senior, spouse, or surviving spouse is/was confined to a hospital, nursing home, or assisted living facility.
• The prior home was condemned by a governmental entity in an eminent domain proceeding, or was sold to such an entity on threat of such action.
• Due to a natural disaster, the prior home was destroyed or made uninhabitable.

When and how to apply.

• There are two types of forms, and both are available from the county assessor’s office.
• The Short Form is for those who meet the basic eligibility requirements.
• The Long Form is for surviving spouses and those who may qualify under the exceptions.
• Completed applications should be submitted to the assessor on or before July 15 of the year for which exemption is requested.
• Once approved, the exception remains in effect until a disqualifying event occurs, such as a change in ownership or occupancy.

Disabled Veteran Tax Exemption

Who is it for?

• Qualified Disabled Veterans.
• Gold Star Spouses.

What does it do?

• The amount of property tax owed on the first $200,000 of the actual value of your primary residence is reduced by 50%.
• The State reimburses the County Treasurer for lost revenue.

What property qualifies?

The same property qualifications as the senior tax exemption apply in addition to:

• The property was owned and occupied by you since January 1 of the year in which you are applying for the exemption.

Eligibility requirements.

• You were honorably discharged.
• You have established service-connected disability rated as 100% permanent by the VA.
• Or, you have a disability rated as 100% permanent through disability retirement benefits administered by the United States Department of Homeland Security or the Department of the Army, Navy, or Air Force.
• Or, you have individual unemployability status as determined by the VA.

Gold Star Spouse eligibility requirements.

You have not remarried and are the surviving spouse of a United States Armed Forces service member who:

• Died in the line of duty and who received a death gratuity from the Department of Defense.
• Or, whose death resulted from a service-related injury or disease as determined by the VA, and who is receiving dependency and indemnity compensation from the VA.

Exceptions to the requirements.

The same exceptions apply as the senior tax exemption in addition to:

• If your spouse owns the property and you do not, but you were married on or before January 1 of the year you are applying for exemption.
• The property is also your primary residence.

When and how to apply.

• Forms are available from the county assessor’s office.
• Completed applications should be submitted to the assessor on or before July 1 of the year for which exemption is requested.
• A VA Benefit Summary Letter is required to be attached to the application at the time of submission.
• Once approved, the exception remains in effect until a disqualifying event occurs, such as a change in ownership or occupancy.

Need Help?

When considering applying for one of these property tax exemptions you may want to consult a CPA. We can refer CPAs who can help answer your questions. Selling or buying a property with one of these tax exemptions in place is not complicated. However, we can help you navigate the specific nuances of such a transaction. Give us a call or send us an email and we’ll talk about it!