Notice of property tax programs confuses

Now that Colorado’s senior property tax exemption has been restored, some are confusing it with another program to help senior citizens pay their taxes.

The state’s Senior Property Tax Exemption Program cuts the property tax bill for a senior citizen by several hundred dollars. The exemption was reinstated for the 2006 tax year, following a suspension in 2003 because of a state budget shortfall.

Officials in each of Colorado’s 64 counties sent notices about the homestead exemption with property tax bills recently.

In El Paso County, the notice was printed on a slip of paper, and a notice on the opposite side alerted property owners to the Elderly Property Tax Deferral Program. In that program, the government loans senior property owners money to pay the taxes and puts a lien on the property, which must be paid back later with interest.

The Senior Property Tax Exemption sounded good to Marilyn Oerter of Colorado Springs, who at 68 didn’t qualify for the exemption when it was available several years ago.

“This was the first year we would have qualified,” Oerter said. “When you turn the sheet over, it says there’s going to be a lien against the property. It was very confusing.”

In fact, the two programs are unrelated and have very different rules, even if they look similar on the county’s notice. Oerter can’t get the property tax exemption from 2006 because the deadline to apply for it was last year, but she can sign up to receive it for the tax bill accumulating this year. Oerter said missing the 2006 exemption hurt, although she can’t blame that on the confusing mailout from the county.

“I missed out. I paid $500 that I didn’t have to pay,” she said.

Oerter wasn’t the only taxpayer to confuse the two programs, said Diane Johnson of the El Paso County Treasurer’s Office, which helps administer the tax deferral program.

El Paso County Assessor Mark Lowderman said a number of people contacted his office, too, mainly with questions to ensure they understood each program.

“Let’s just say we won’t do that again — we’ll print them on two different-colored pieces of paper,” Lowderman said.

Here are the basics on each program:

- The Senior Property Tax Exemption Program is for homeowners at least 65 years old who have lived in the same house for 10 years or more.

Tax bills are cut in half for the first $200,000 of value on residential property. In other words, on a home worth $140,000, the tax bill would be calculated based on a value of $70,000. The savings would be about $350.

Lowderman said about 15,000 El Paso County homeowners take advantage of the program. It’s too late to get the savings for the 2006 tax year. Homeowners have until July 15 to apply for the exemption for this tax year, with taxes payable in 2008.

Once applicants are approved, they’re automatically given the exemption in subsequent years unless the Legislature takes away funding. Senior citizens should call the assessor’s office with questions, Lowderman said.

“We are advocates for our senior taxpayers, and we try to help them through the process,” he said.

- The Elderly Property Tax Deferral Program is for homeowners at least age 65, but it doesn’t matter how long the owner has lived in the home.

Participants have to apply each year between Jan. 1 and April 1. The state treasury pays property taxes on behalf of the homeowner and puts a lien on the property, which has to be paid with interest when the property is sold.

People with questions may call the county treasurer’s office. Only about 25 people participated in the program this year. Some people use it because they think they can earn more by investing the money that would have gone to taxes, Johnson said.

“I have others (who use it) because it’s a necessity,” she said. “They really need help.”

CONTACT THE WRITER: 636-0187 or perry.swanson@gazette.com

MORE INFORMATION

- For details about the Senior Property Tax Exemption Program, call the El Paso County Assessor’s Office, 520-6600.

- For details about the Elderly Property Tax Deferral Program, call the El Paso County Treasurer’s Office, 520-6666.