Expanding 2023 Property Tax Exemptions

For the property tax year commencing on January 1, 2023, the bill specifies that a senior is deemed to be a 10-year owner-occupier of a primary residence that the senior has owned and occupied for less than 10 years and therefore qualifies for the senior property tax exemption for the residence if:

• The senior would have qualified for the senior property tax exemption for the senior's former primary residence but a medical necessity required the senior to stop occupying the former primary residence;
• The senior has not previously received the exemption for a former primary residence on the basis of medical necessity; and
• The senior has not owned and occupied another primary residence since the senior first stopped occupying the senior's former primary residence due to medical necessity.

"Medical necessity" is defined as one or more medical conditions of a senior that a physician licensed to practice medicine in Colorado has certified on a form developed by the state property tax administrator as having required the senior to stop occupying the senior's prior primary residence.

When applying for an exemption on the basis of medical necessity, a senior must provide the form establishing proof of medical necessity.

For the property tax year commencing on January 1, 2023, the bill increases the maximum amount of actual value of the owner-occupied residence of a qualifying senior, veteran with a disability, or surviving spouse of a veteran with a disability, that is exempt from property taxation from $200,000 to $350,000.

(Note: This summary applies to this bill as introduced.)