With homeowners facing a sticker shock in property taxes, state treasury officials reminded residents they can opt to defer payments.

But it’s too late to apply this year, so property owners will have to wait for next year. 

Tax deferral is traditionally designed to help older Coloradans and active military personnel, but Colorado lawmakers expanded the program to provide relief to homeowners facing sharp property tax hikes in 2020, 2021, and 2022.

Under the state’s expansion program, all homeowners may defer payment of a portion of their property taxes if their liability grew by more than 4%, averaged from the preceding two years. In 2021, the state treasurer’s office paid tax deferrals of about $23 million.

Colorado State Treasurer Dave Young said the deferrals offer a temporary respite, ensuring residents can stay in their homes. 

“Sticker shock is hitting Coloradans as they receive their property assessments. By expanding the Property Tax Deferral Program, we’re continuing to provide financial relief for homeowners,” Young said. “Anytime we can keep folks in their homes and help them find tax relief at the same time is a win.”

Young’s office emphasized that the program doesn’t mean a tax exemption. Instead, the deferral is a loan – the treasurer’s office pays the county in the meantime and the loan is then recorded as a “junior lien” against the property. That loan also accrues interest, although it does not have to be repaid until a later date.

For this year, applications for deferments ended on April 1.

The treasurer’s office said claims must be filed after January and by April 1 of each year in which a taxpayer claims the deferral. The applications will open again on Jan. 1, 2024.

Homeowners can check whether they are eligible for payment deferment at colorado.propertytaxdeferral.com.