Back in 2000, when Colorado voters created the state’s senior homestead exemption, it cut property tax bills in half for the typical qualifying household.
Today, though? The popular tax break on primary residences is only worth a fraction of that.
The state homestead exemption for seniors and disabled veterans has been steadily eroding since voters enshrined it in the constitution 24 years ago.
Back then, the median home in Colorado was worth $166,600. The exemption cuts 50% off that before applying taxes. But it maxes out at $200,000 of home value — a $100,000 exemption.
To qualify, a homeowner has to be at least 65 years old or a disabled veteran, and live in their home at least 10 years.
Today the median home in Colorado is more than $550,000, according to Zillow. The average home value is even higher than that: over $700,000, according to a Colorado Legislative Council staff analysis.
But even as home prices have risen faster than inflation overall, the homestead exemption hasn’t budged at all. It’s frozen in time at a maximum of $100,000 off a home’s value.
As a result, the senior homestead exemption today is worth just 18% off the median home — down from 50% in 2000. It’s expected to save the average homeowner $579 next tax year, according to legislative analysts.
State lawmakers have tried a few times to update the homestead tax break, but their proposals to do so have never made it out of committee. In 2022, a Republican-led effort to double the exemption died in its first Senate committee hearing. A bipartisan effort to amend the constitution to increase it and tie it to inflation met the same fate.
“(Seniors) are literally being taxed out of their homes due to escalating local property taxes,” Republican Sen. Larry Liston of Colorado Springs said at a 2022 committee hearing.
During the November 2023 special session on property taxes, yet another bipartisan effort was rejected in a House committee — House Bill 1007, which would have increased the exemption to 50% off $325,000 for one year only. However, lawmakers did approve a bill to allow homeowners to keep their exemption if they move.
Welcome to The Unaffiliated, the politics and policy newsletter from The Colorado Sun. Each week, we take you inside the political arena to deliver news and insights on Colorado politics. Keep reading for even more exclusive news.
If you’re reading this newsletter but not signed up for it, here’s how to get it sent directly to your email inbox. Please send feedback and tips to jesse@coloradosun.com.
WHY LAWMAKERS HAVEN’T INCREASED IT
Budget concerns have long gotten in the way of attempts to increase the exemption. For a number of years following the Great Recession, the state refused to fund the tax break at all.
But at a time when property values are rising at record rates — and lawmakers have responded with round after round of large property tax cuts — the senior homestead exemption was notably absent from the special session tax debate.
State Rep. David Ortiz, a Democrat from Littleton who sponsored the 2023 special session bill, said equity concerns are now proving to be the biggest barrier to increasing the tax break — at least among the legislature’s Democratic majority.
“I think the biggest pushback on increasing it is that not all people who are seniors are on a fixed income,” he told The Colorado Sun. “The bottom line is, it does need to be increased — we just need to make sure that it’s going to seniors and disabled veterans that need it the most.”
Remember: The homestead exemption is paid for via refunds owed under the Taxpayer’s Bill of Rights. But now that Democrats have redirected TABOR refunds toward low-income families through programs like the Earned Income Tax Credit, there may be even less appetite to increase the property tax exemption. Each dollar spent on the senior tax break is $1 less that the state can distribute to low-income families.
Nonetheless, lawmakers learned a lesson from the shrinking senior homestead exemption when they crafted Senate Bill 233 in the 2024 regular session.
One of the bill’s key features is an exemption that cuts 10% off the first $700,000 in a home’s value. And, unlike the senior homestead exemption, it will grow each year by the rate of inflation starting in 2027.
Seniors and disabled veterans receive both tax breaks. And eventually, the $70,000 Senate Bill 233 exemption could be worth more than the $100,000 senior homestead exemption, if the latter remains frozen in year 2000 dollars.
WHAT TO WATCH THIS WEEK
THE BIG STORY
The campaign finance situation in Colorado’s most competitive state House and Senate districts
State campaign finance reports filed last week provide the latest glimpse at fundraising and spending in the Colorado House and Senate races that will likely determine whether Democrats secure supermajorities in both chambers of the legislature.
A reminder: Democrats can afford to lose only two seats to keep their two-thirds advantage in the House. They need just one more Senate seat to achieve a supermajority in the upper chamber.
Here is the House breakdown:
Here’s the campaign finance picture in the most competitive state Senate contests:
Keep in mind: Political group spending will almost surely eclipse candidate spending in all of these races given Colorado’s low campaign contribution limits. If you see mailers or other ads in the districts, please keep up informed.
But also: We’re hearing there’s some concern among Democrats about their candidates’ fundraising. They wish the numbers were higher heading into the election’s home stretch.
Want to reach Colorado political influencers and support quality local journalism? The Sun can help get your message attention through a sponsorship of The Unaffiliated, the must-read politics and policy newsletter in Colorado. Contact Sylvia Harmon at underwriting@coloradosun.com for more information.
THE POLITICAL TICKER
8TH CONGRESSIONAL DISTRICT
Mainstream Colorado, a recently formed federal super PAC supporting Democratic U.S. Rep. Yadira Caraveo of Thornton, reported spending $30,000 on Sept. 6 on canvassing in support of the congresswoman’s reelection campaign in the 8th Congressional District. That brings the PACs total support for Caraveo thus far to $260,000.
COLORADO DEMOCRATIC PARTY
The Colorado Democratic Party last week released its positions on the 14 measures on the statewide ballot. Here’s the breakdown:
3RD CONGRESSIONAL DISTRICT
Democrat Adam Frisch, a former Aspen city councilman, has released a new TV ad in his 3rd Congressional District race against Jeff Hurd, a Grand Junction attorney. Frisch attacks Hurd over water issues in the 30-second spot by bringing up how Hurd’s employer has foreign clients and how some of his supporters have worked to route San Luis Valley water to the Front Range to account for development.
Hurd has long opposed that idea. “It is a shame Adam has decided he will do and say anything to get elected,” said Nick Bayer, the general consultant for Hurd’s campaign.
CONGRESS
Joel Valdez, who was previously communications director for Republican U.S. Rep. Matt Gaetz of Florida, is joining Republican U.S. Rep. Lauren Boebert’s congressional office as her senior adviser. The news was first reported by Politico.
GUBERNATORIAL APPOINTMENTS
Nellie Moran, chief of staff for the Colorado Senate Democratic caucus, has been appointed by Gov. Jared Polis to serve on the High Performance Transportation Enterprise Board. Moran helped work on the bill this year to increase the daily fee on car rentals, the revenue from which will be collected by the HPTE.
Meanwhile, Polis also appointed former U.S. Rep. Ken Buck, a Republican, to the Colorado Supreme Court Judicial Nominating Commission, which helps select judges for the Colorado Supreme Court and Colorado Court of Appeals. Buck fills the seat of R. Stanton Dodge, chief legal officer for DraftKings, whose term ended at the end of last year.
READ MORE
🔑 = source has article meter or paywall
ELECTION 2024
The social media feed of the Libertarian candidate who endorsed Gabe Evans
Republican state Rep. Gabe Evans last week welcomed the endorsement of Libertarian candidate Eric Joss in the 8th Congressional District.
“Eric, from the bottom of my heart, I appreciate you and I look forward to continuing this working relationship that we’ve built,” Evans said during a news conference.
But Evans, an Army veteran and former policy officer, may find political danger in tying himself too closely to Joss.
A look at the Libertarian’s social media feed shows it has some recent anti-police, anti-trans and misogynistic posts. A sampling of what he has shared on X over the past few months:
Joss, in an interview with The Unaffiliated, said the posts were made in jest.
“I think this is kind of chicken shit for people to be digging around in sarcastic comments that I make on social media,” he said. “I guess when you’re even a semi-public figure, I suppose it’s fair game.”
Joss said he absolutely has respect for police officers. He added that he and Evans never discussed his social media activity and that when he talks with Evans, “we talk man to man and any prejudice I might have toward cops I suspend.”
“I give him a chance to represent himself in a fair manner,” Joss said.
Evans’ reaction: “We don’t agree with every view of every one of our supporters any more than any other candidate does,” said Alan Philp, Evans’ spokesman.
THE BIGGER PICTURE
🔑 = source has article meter or paywall
The Colorado Sun is part of The Trust Project. Read our policies.
Corrections & Clarifications
Notice something wrong? The Colorado Sun has an ethical responsibility to fix all factual errors. Request a correction by emailing corrections@coloradosun.com.