Under
current
rules,
the
state
reimburses
local
governments
for
the
lost
revenue
but
only
when
the
budget
allows.
But
according
to
the
state
Legislative
Council’s
economic
and
revenue
forecast
in
June,
Colorado
lacks
the
funds
to
issue
reimbursements.
In
2024,
it
faced
a
$1.2
billion
budget
deficit.

“In
Mesa
County
alone,
more
than
11,000
residents
depend
on
this
relief,
totaling
roughly
$5
million
in
local
tax
reduction
every
year,”

officials
wrote.
“If
the
state
fails
to
act,
the
burden
shifts
directly
into
local
taxpayers.”

According
to
state
guidelines,
the
exemption
applies
to
homeowners
who
are
at
least
65
years
old
as
of
Jan.
1,
have
owned
their
property
for
at
least
10
straight
years
and
occupy
it
as
their
primary
residence.

Property
taxes
have
risen
across
Colorado
since
2020,
when
voters
repealed
the
Gallagher
Amendment,
which
capped
the
ratio
of
residential
to
commercial
property
tax
assessments.
In
2021,
the
senior
exemption
cost
the
state
about
$156
million;
next
year,
it’s
projected
to
cost
nearly
$180
million,
according
to
the
Mesa
County
officials.

That’s
the
reality
across
the
country.
Property
taxes
are rising
dramatically and
they
have
the
potential

to
hit
hardest
for
seniors
living
on
a
fixed
income.
To
ease
the
burden
on
senior
and
fixed-income
homeowners,
Mesa
County
has
lowered
its
millage
rate
—
the
tax
rate
used
to
calculate
property
taxes
based
on
assessed
value.

“If
the
Legislature
fails
to
fund
this
program
now,
the
impact
on
local
governments
and
vulnerable
residents
will
be
immediate,”
the
officials
said.
“Local
taxing
entities
like
fire
districts,
schools,
and
the
county
rely
on
these
reimbursements
to
maintain
essential
services.”

This
is
not
the
first
time
the
exemption
has
come
under
threat.
While
the
Senior
Homestead
Exemption
(established
by
voters
in
2000)
is
constitutionally
guaranteed,
the
state
is
not
automatically
required
to
reimburse
local
governments.
Funding
was
suspended
during
a
budget
crisis
in
the
early
2000s
and
again
during
the
Great
Recession.

“We
strongly
urge
the
Colorado
Legislature
to
honor
its
long-standing
commitment
to
seniors,
disabled
veterans
and
Gold
Star
families
by
fully
funding
the
exemption
through
the
general
fund
or
by
tightening
other
areas
of
the
budget.
Keeping
this
promise
is
far
more
than
a
budget
decision
—
it
is
a
moral
obligation,”
the
officials
wrote.