Property Tax Deferral

Property Tax Deferral

The senior and military (activated guard or reserve) tax deferral program is offered by the State of Colorado. It allows you to postpone your tax payments until you sell your property, or your estate is settled after your death. Interest is applied to the amount you defer. You can defer either the whole amount of your taxes or half of your taxes. The Larimer County Treasurer's Office collects the information and sends it to the State of Colorado who manages the program, makes all the decisions, and then notifies the county treasurers who has been approved or disapproved.

The interest rate is determined annually by the most recently issued U.S. 10-year Treasury note. The new interest rate is 1.081%, effective May 1, 2021 through April 30, 2022.

General requirements

  1. Applicant must be a senior who is 65 years old on or before January 1 of this year OR a person called into military (activated guard or reserve) service pursuant to CRS 39-3.5-101 (1.8) on January 1 of the year in which you file a claim. 
  2. You must own and occupy the property as your primary residence.
  3. You cannot be earning income from the property (i.e., renting the property).
  4. If your property is in a trust, you must be named the trustee and the beneficiary of the trust. Most trusts are not set up this way.
  5. If you have a reverse mortgage, the property is only eligible for future deferrals if a subordination agreement from the mortgage lender is submitted with the application.
  6. All prior years' property taxes must be paid, there cannot be delinquent tax liens against the property.
  7. The total value of liens against the property (mortgages, deferrals, and/or deeds of trust) cannot exceed 75% (senior) or 90% (veterans) of actual value of the property.
  8. The deferral amount must be paid upon sale or transfer of the property. The deferral amount can also be paid any time prior to the sale or transfer without affecting future eligibility.

Procedure

Those who qualify must file an application with the Treasurer and Public Trustee's Office each year. A completed application must be returned to the Treasurer and Public Trustee's Office no later than close of business March 30th.

To determine if you qualify and to complete an application, you need to provide the following information:

  1. Full name*
  2. If the property is held in a trust, the name of the trust
  3. Property address
  4. Date of birth*
  5. Phone number
  6. A qualifying form of identification and signed statement of lawful presence in the United States*
  7. Name of your mortgage company or companies (if applicable)
  8. Approximate balance on your mortgage or mortgages (if applicable)

*This information must be submitted for each person whose name is listed as owner on the property; however, only the primary applicant needs to be 65 years of age or older

If you apply and are approved, the County Treasurer will issue you a Certificate of Deferral. The County Treasurer will record the certificate and send it to the State Treasurer. The State Treasurer makes payments to the County on behalf of the approved applicants by April 30 for the tax amount due. The State Treasurer will charge you interest on the amount deferred beginning May 1 of the year in which the deferral is claimed. The interest is compounded annually.

Copies of the deferral certificates are kept in the County Assessor and Treasurer's Offices. The deferred taxes may be paid at any time without affecting your deferral eligibility. If your property taxes are normally paid as part of your mortgage payment, you should present your deferral certificate to the mortgage company for a refund of the property tax monies held in escrow.

While it is true that you are deferring your property tax payments, the State is actually making the payments to local governments. Your County Treasurer submits your claim form to the State Treasurer. Since the State Treasurer makes the payments to your County, you are borrowing the payments from the State until such time as you pay the State back.

You must reapply with the County Treasurer each year would like to defer your property taxes.

Note: Deferral of your property tax does not negate your right to apply for the Property Tax/Rent/Heat Credit.

For more information about Property Tax Deferrals or to apply, please call or email us.