Town of Foxfield

Homestead Exemption

What is the homestead exemption?

In November 2000, voters approved legislation that reduces property taxes for qualified senior citizens by exempting a portion of the value of their home from property taxation. The portion of the home’s value that is exempted is called a homestead exemption.

In Colorado, property taxes fund local government services such as schools, police, fire protection and recreation facilities. Homeowners pay property taxes based on the value of their home and the tax rate set by the local governments where they live. The homestead exemption reduces the taxable value of a home by one-half of the first $200,000 of a home’s value, thereby lowering property taxes for those who qualify. Homeowners with homes valued at $200,000 or less receive the largest percentage tax reduction. The percentage reduction in property taxes decreases as the home value increases above $200,000.

The homestead exemption affects property taxes paid beginning in 2003. Since the state will be required to backfill any revenue loss to school districts and other units of local government, local revenues from property tax sources will not be harmed.

Who qualifies for the homestead exemption?

· Persons 65 years of age or older who have owned and occupied their homes for the past ten years
· Spouse or surviving spouse whose primary residence is the home of a qualified owner-occupier

How will the homestead exemption affect my property taxes?

· A senior with a home valued at $100,000 usually pays $780 per year in property taxes. Under the homestead exemption, a senior would pay only $390 per year – a 50% tax reduction.
· A senior with a home valued at $150,000 would pay $585 rather than $1170 – a 50% reduction.
· A senior with a home valued at $200,000 would pay $780 rather than $1560 – a 50% reduction.
· A senior with a home valued at $300,000 would pay $1560 rather than $2340 – a 33% reduction.
· A senior with a home valued at $500,000 would pay $3120 rather than $3900 – a 20% reduction.