Colorado property taxes: How are you impacted?

Take an inside look at the continued debate centered on Colorado's property tax policies.

By Karen Moldovan, AARP Colorado associate state director for advocacy, and Dennis Valentine, AARP Advocacy Team volunteer

Property taxes continue to be a significant, and ongoing, policy debate in Colorado.

While Coloradans typically pay less residential property taxes  than most states , AARP Colorado understands how important these issues are to our members. With sharp increases over the past few years, increasing inflation rates, and the pressures of living on a fixed income, AARP knows that property tax reform impacts the day-to-day lives of older Coloradans.

For those reasons, our AARP Advocates team has closely monitored state and local leaders’ work in this area. AARP will continue to advocate for measures that help those who need it the most: aging Coloradans.

In the last legislative session, a bipartisan Property Tax Commission met for several months to debate, research, and review property tax proposals. They debated how to both ensure local governments have the resources they need to provide basic services, while also ensuring property owners can afford to live and stay in their communities without being “priced out” due to rising property tax rates. The last legislative session culminated in the bipartisan passage of Senate Bill 24-233. That law was passed with the intention to slow the growth of property tax bills. Two other measures passed last session with strong support and advocacy by AARP. These bills may be important for Coloradans to discuss with their tax professionals:

Pekic/Getty Images

SENATE BILL 111: Senior Primary Residence Prop Tax Reduction

This law helps older Coloradans save money on their property taxes by making the Senior Homestead Property Tax Exemption portable between primary residences. If an individual has previously qualified for a senior homestead exemption but has moved to a new home, the exemption can now move as well. Portability of this tax benefit currently only covers seniors who qualified for the Senior Homestead after January 1, 2020, and is only in place for 2025 and 2026.

HOUSE BILL 1052: Senior Housing Income Tax Credit

This law reinstates an income tax credit to help income-qualified seniors afford housing. Qualifying older Coloradans, 65-plus who make under $75,000, or $125,000 if filing jointly, will be able to claim a tax refund up to $800 for the 2024 tax year. This tax credit can be obtained by renters or homeowners not able to claim a Homestead Property Tax Exemption.

Despite the progress on limiting the sharp increase in property taxes made during the last legislative session, the CO General Assembly is back at work this week, debating additional proposals.

The “Special Session” was convened by Governor Jared Polis because two potential ballot measures regarding property taxes posed significant concern expressed by both state and local governments due to projected budget losses.

Several analyses covering different perspectives can be reviewed, with an internet search for “Colorado + Proposition 50 and Initiative 108.”. Now, legislators are debating how to make further reforms to our property tax system. This fiscal analysis provides details on the current leading compromise proposal. Several other related bills are also being debated.

AARP Colorado will continue to monitor this issue closely and advocate for measures that increase financial security for our members. For assistance with your taxation questions, please visit AARP Foundation’s Tax Aide program: aarp.org/taxaide.