HB 25-1111

HB 25-1111 is a Colorado bill that increases property tax relief for certain homeowners by raising the homestead exemption. Instead of exempting 50% of the first $200,000 in home value, it will now exempt 50% of half the state’s median home value for qualifying seniors, disabled veterans, and surviving spouses of service members who died in duty. The bill also proposes a constitutional amendment to allow these homeowners to claim the exemption regardless of how long they've lived in their current residence, starting from the 2026 election if voters approve it. Since the bill has been signed into law, qualifying residents will see reduced property tax bills based on this new higher exemption amount as early as 2025.

Official Summary

For property tax years commencing during property tax reassessment cycles (cycles) that begin on or after January 1, 2025, the bill changes the amount of the exemptions for the owner-occupied primary residence (residence) of a qualifying senior, a veteran with a disability, or the surviving spouse of a United States armed forces service member who died in the line of duty or veteran whose death resulted from a service-related injury or disease (exemptions) from 50% of the first $200,000 of actual value of the residence to 50% of an amount of actual value of the residence equal to 50% of the estimated state median home value (median home value) for the state; except that, if the median home value declines, the exemption amount continues to be calculated based on the median home value used to calculate the exemption amount for the property tax years included in the prior cycle. The state constitution currently only allows a senior who has owned and occupied the senior's residence for 10 years, or the surviving spouse of such a senior (surviving spouse), to claim the exemption. If at the 2026 general election the voters of the state approve a referred constitutional amendment to allow a senior or a surviving spouse who has previously qualified for the exemption for 2016 or any later year for a prior residence to claim the exemption for the senior's or surviving spouse's current residence regardless of how long the senior or surviving spouse has owned and occupied that residence, the bill makes the statutory changes needed to conform to the constitutional amendment. (Note: This summary applies to this bill as introduced.)

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