SB 23-107

Senate Bill 23-107, which has been signed into law, helps seniors and veterans with disabilities who need to move due to medical reasons. It allows these individuals to qualify for property tax exemptions on their new primary residence if they previously had a similar exemption on their old home but were forced to leave it because of health issues. The bill also increases the value limit of a home that can be exempt from property taxes, raising it from $200,000 to $300,000 until 2028 and then to $500,000 after that. This means more homeowners will pay less in property taxes if they meet the criteria set by the bill.

Official Summary

For property tax years commencing on or after 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 property tax years commencing on or after January 1, 2023, but before January 1, 2028, the bill increases the maximum amount of actual value of the owner-occupied residence of a qualifying senior or veteran with a disability that is exempt from property taxation from $200,000 to $300,000. For property tax years commencing on or after January 1, 2028, the bill increases the maximum amount of actual value of the owner-occupied residence of a qualifying senior or veteran with a disability that is exempt from property taxation from $300,000 to $500,000. (Note: This summary applies to this bill as introduced.)

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