Senior/Military Tax Deferral Program By: Alycia Allshouse Chief Deputy Boulder County Treasurer And Monica Hughes Colorado State Treasurer’s Office Senior/Military Tax Deferral Program •The Senior/Military Tax Deferral Programs are authorized by state law (39-3.5) and administered through County Treasurer’s Offices and the State Treasurer’s office. •These programs are a Loan of State moneys to taxpayers. (39-3.5-105.5) Estimate of Running Stats: County Number of Applicants Total Amount Deferral by County Boulder 362 $7,574,224.65 El Paso 67 $333,786.27 Jefferson 31 $269,001.26 Arapahoe 30 $204,075.54 Douglas 18 $282,826.38 Denver 14 $81,725.78 Larimer 14 $108,243.32 Adams 11 $67,176.76 Pitkin 7 $274,894.62 Garfield 5 $70,173.88 Mesa 5 $42,701.55 Broomfield 2 $34,510.52 Ouray 2 $21,834.46 Delta 1 $10,461.24 Eagle 1 $7,527.00 Elbert 1 $5,900.68 Montrose 1 $464.38 Morgan 1 $2,104.52 Pueblo 1 $2,334.76 Totals 574 $9,393,967.57 Qualifications

Filing of Claim: Taxpayers eligibility 39-3.5-102

• Applications must be received between Jan. 1 and April 1.

• Person who is sixty-five years of age or older or called into military service on January 1 of the year in which the person files a claim. ( 2019 Deferral App. = Born in 1953 or before….) Qualifications

• Property entitled to deferrals: 39-3.5-103 • Property must be homestead(primary residence) of the taxpayer claiming the deferral. • Taxpayer claiming deferral must individually or jointly reside in the homestead. • Property must Not be income-producing. • Equity in actual value or ability for a lender to subordinate. • Seniors: At least 25% equity (taxes, interest, mortgages) 39-3.5-103(A) • Military: At least 10% equity (taxes, interest, mortgages) 39-3.5-103 (B) (Value obtained from County Assessor’s records) CLAIM FORM – contents 39-3.5-104

From the Top!

Issues: Name, Legal Description Lien Info

Reverse Mortgages: In most cases are recorded for at least 90% of the home value making them ineligible for the deferral program. All owners listed on the title to the property must sign the application

If a Guardian, Conservator or Attorney-in-fact have signed the application, we must have the a copy of the recorded document

All contact information should be printed if applicable. Does it all add up?

Once an application is correctly completed, signed and sealed, it is Recorded with the C & R and a lien is of record. Identification Verification Applicants lawful presence in the United States • Each person on the title of the property must complete a separate form. • A witness must be present and sign the form for the applicant. • This can be a family member, friend, neighbor or caregiver • ID’s MUST be issued by the United States Government • Acceptable forms of ID: • Driver’s License • ID Card • U.S. Military ID • Passport • Legal Resident ID Copy of Boulder County’s Form INTEREST

• Interest is Simple interest. • The annual interest rate is calculated on February 1 of the calendar year in which such deferral is claimed. The rate of the most recently issued ten-year United States treasury note, rounded to the nearest one-tenth of one percent as reported by the Wall Street Journal. This years interest rate is 2.25% • On April 30th of each year, the calculated interest is added to the total principal of all deferred taxes. Trust Acknowledgement Form • All beneficiaries must sign the form. • This form must be notarized. • This form must be recorded with the Deferral Application and the original sent to the State with the application. • We require a copy of the first page and beneficiaries page of the trust for our file. Mortgage Company Escrows vs Deferred Taxes

Deferred taxes and interest are a junior lien to any mortgage or deed of trust recorded prior to the date of the recording of the certificate. Discussion: Funds held in escrow shall be refunded to the owner of said property no later than thirty days after receiving said Certificate of deferral. 39-3.5-105 (2) ** If mortgage company pays 1st half / refund at time of receipt or after April 30? Mobile Home Deferrals

If a deferral application is requested on a mobile home. The owner must also present the Title to the mobile home with the application. Upon receipt of the title the Treasurer will present the title to the Clerk and Recorder to have a lien recorded on the title for each year of deferral.

If the location of the mobile home changes within the County or moves to another County this triggers the repayment of the deferral loan. Loan must be paid within 90 days of the event. Tracking Deferrals in your system

• We use a Flag code in our system to identify Deferral accounts. • We use Access Data Base to generate and track our applications each year. What do we do if a Senior changes there mind?

Has the If No: Mark the application void, cross through it and remove any information from application been the system. recorded? If Yes: Record a release of Deferral Application lien, Mark the application void and remove any information from the system.

Has the application Contact the State and notify them the application is being withdrawn. been sent to Request the application back. the State? Record a release of Deferral Application. Mark the application void and remove information from your system.

State Rejects the Application

State returns the application form and then the same steps as above are followed for releasing the Deferral lien and removing info from your system.

When do Deferrals get paid back?

• Participants in the program can pay back the State at anytime, either in full or partial payments. 39-3.5-113 • Events requiring repayment 39-3.5-110, 111 Taxpayer who claimed the deferral dies (max – one year after death) Surviving spouse can continue if 60 years of age or older when death occurs. The property is sold or becomes subject to a contract of sale. (90 days) Property is no longer the homestead (unless by reason of fill health) (90 days)