Again in 2000, when Colorado voters created the state’s senior homestead exemption, it minimize property tax payments in half for the everyday qualifying family.
Right this moment, although? The favored tax break on major residences is simply price a fraction of that.
The state homestead exemption for seniors and disabled veterans has been steadily eroding since voters enshrined it within the structure 24 years in the past.
Again then, the median residence in Colorado was price $166,600. The exemption cuts 50% off that earlier than making use of taxes. Nevertheless it maxes out at $200,000 of residence worth — a $100,000 exemption.
To qualify, a home-owner needs to be not less than 65 years outdated or a disabled veteran, and stay of their residence not less than 10 years.
Right this moment the median residence in Colorado is greater than $550,000, in line with Zillow. The typical residence worth is even greater than that: over $700,000, in line with a Colorado Legislative Council employees evaluation.
However whilst residence costs have risen quicker than inflation general, the homestead exemption hasn’t budged in any respect. It’s frozen in time at a most of $100,000 off a house’s worth.
Because of this, the senior homestead exemption right now is price simply 18% off the median residence — down from 50% in 2000. It’s anticipated to avoid wasting the typical house owner $579 subsequent tax yr, in line with legislative analysts.
State lawmakers have tried a number of occasions to replace the homestead tax break, however their proposals to take action have by no means made it out of committee. In 2022, a Republican-led effort to double the exemption died in its first Senate committee listening to. A bipartisan effort to amend the structure to extend it and tie it to inflation met the identical destiny.
“(Seniors) are actually being taxed out of their houses as a consequence of escalating native property taxes,” Republican Sen. Larry Liston of Colorado Springs stated at a 2022 committee listening to.
In the course of the November 2023 particular session on property taxes, one more bipartisan effort was rejected in a Home committee — Home Invoice 1007, which might have elevated the exemption to 50% off $325,000 for one yr solely. Nevertheless, lawmakers did approve a invoice to permit householders to maintain their exemption in the event that they transfer.
WHY LAWMAKERS HAVEN’T INCREASED IT
Price range considerations have lengthy gotten in the best way of makes an attempt to extend the exemption. For a variety of years following the Nice Recession, the state refused to fund the tax break in any respect.
However at a time when property values are rising at document charges — and lawmakers have responded with spherical after spherical of enormous property tax cuts — the senior homestead exemption was notably absent from the particular session tax debate.
State Rep. David Ortiz, a Democrat from Littleton who sponsored the 2023 particular session invoice, stated fairness considerations at the moment are proving to be the largest barrier to rising the tax break — not less than among the many legislature’s Democratic majority.
“I believe the largest pushback on rising it’s that not all people who find themselves seniors are on a set revenue,” he informed The Colorado Solar. “The underside line is, it does must be elevated — we simply must ensure that it’s going to seniors and disabled veterans that want it essentially the most.”
Bear in mind: The homestead exemption is paid for by way of refunds owed underneath the Taxpayer’s Invoice of Rights. However now that Democrats have redirected TABOR refunds towards low-income households by way of packages just like the Earned Earnings Tax Credit score, there could also be even much less urge for food to extend the property tax exemption. Every greenback spent on the senior tax break is $1 much less that the state can distribute to low-income households.
Nonetheless, lawmakers discovered a lesson from the shrinking senior homestead exemption after they crafted Senate Invoice 233 within the 2024 common session.
One of many invoice’s key options is an exemption that cuts 10% off the primary $700,000 in a house’s worth. And, not like the senior homestead exemption, it would develop annually by the speed of inflation beginning in 2027.
Seniors and disabled veterans obtain each tax breaks. And finally, the $70,000 Senate Invoice 233 exemption might be price greater than the $100,000 senior homestead exemption, if the latter stays frozen in yr 2000 {dollars}.
The marketing campaign finance scenario in Colorado’s best state Home and Senate districts
State marketing campaign finance stories filed final week present the most recent glimpse at fundraising and spending within the Colorado Home and Senate races that can doubtless decide whether or not Democrats safe supermajorities in each chambers of the legislature.
A reminder: Democrats can afford to lose solely two seats to maintain their two-thirds benefit within the Home. They want only one extra Senate seat to attain a supermajority within the higher chamber.
Right here is the Home breakdown:
Right here’s the marketing campaign finance image in essentially the most aggressive state Senate contests:
Bear in mind: Political group spending will virtually certainly eclipse candidate spending in all of those races given Colorado’s low marketing campaign contribution limits. In the event you see mailers or different adverts within the districts, please sustain knowledgeable.
But additionally: We’re listening to there’s some concern amongst Democrats about their candidates’ fundraising. They want the numbers have been greater heading into the election’s residence stretch.
Need to attain Colorado political influencers and assist high quality native journalism? The Solar may also help get your message consideration by way of a sponsorship of The Unaffiliated, the must-read politics and coverage e-newsletter in Colorado. Contact Sylvia Harmon at underwriting@coloradosun.com for extra info.
8TH CONGRESSIONAL DISTRICT
Mainstream Colorado, a not too long ago fashioned federal tremendous PAC supporting Democratic U.S. Rep. Yadira Caraveo of Thornton, reported spending $30,000 on Sept. 6 on canvassing in assist of the congresswoman’s reelection marketing campaign within the eighth Congressional District. That brings the PACs complete assist for Caraveo so far to $260,000.
COLORADO DEMOCRATIC PARTY
The Colorado Democratic Social gathering final week launched its positions on the 14 measures on the statewide poll. Right here’s the breakdown:
3RD CONGRESSIONAL DISTRICT
Democrat Adam Frisch, a former Aspen metropolis councilman, has launched a brand new TV advert in his third Congressional District race in opposition to Jeff Hurd, a Grand Junction lawyer. Frisch assaults Hurd over water points within the 30-second spot by citing how Hurd’s employer has international purchasers and the way a few of his supporters have labored to route San Luis Valley water to the Entrance Vary to account for improvement.
Hurd has lengthy opposed that concept. “It’s a disgrace Adam has determined he’ll do and say something to get elected,” stated Nick Bayer, the overall marketing consultant for Hurd’s marketing campaign.
CONGRESS
Joel Valdez, who was beforehand communications director for Republican U.S. Rep. Matt Gaetz of Florida, is becoming a member of Republican U.S. Rep. Lauren Boebert’s congressional workplace as her senior adviser. The information was first reported by Politico.
GUBERNATORIAL APPOINTMENTS
Nellie Moran, chief of employees for the Colorado Senate Democratic caucus, has been appointed by Gov. Jared Polis to serve on the Excessive Efficiency Transportation Enterprise Board. Moran helped work on the invoice this yr to extend the every day price on automotive leases, the income from which will likely be collected by the HPTE.
In the meantime, Polis additionally appointed former U.S. Rep. Ken Buck, a Republican, to the Colorado Supreme Court docket Judicial Nominating Fee, which helps choose judges for the Colorado Supreme Court docket and Colorado Court docket of Appeals. Buck fills the seat of R. Stanton Dodge, chief authorized officer for DraftKings, whose time period ended on the finish of final yr.
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The social media feed of the Libertarian candidate who endorsed Gabe Evans
Republican state Rep. Gabe Evans final week welcomed the endorsement of Libertarian candidate Eric Joss within the eighth Congressional District.
“Eric, from the underside of my coronary heart, I admire you and I look ahead to persevering with this working relationship that we’ve constructed,” Evans stated throughout a information convention.
However Evans, an Military veteran and former coverage officer, might discover political hazard in tying himself too intently to Joss.
A take a look at the Libertarian’s social media feed reveals it has some latest anti-police, anti-trans and misogynistic posts. A sampling of what he has shared on X over the previous few months:
Joss, in an interview with The Unaffiliated, stated the posts have been made in jest.
“I believe that is type of rooster shit for folks to be digging round in sarcastic feedback that I make on social media,” he stated. “I assume whenever you’re even a semi-public determine, I suppose it’s truthful recreation.”
Joss stated he completely has respect for cops. He added that he and Evans by no means mentioned his social media exercise and that when he talks with Evans, “we discuss man to man and any prejudice I might need towards cops I droop.”
“I give him an opportunity to signify himself in a good method,” Joss stated.
Evans’ response: “We don’t agree with each view of each one among our supporters any greater than every other candidate does,” stated Alan Philp, Evans’ spokesman.
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Corrections & Clarifications
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