Colorado must keep its promise to seniors and disabled veterans
By BRENT GOFF, SHEILA REINER, CODY DAVIS, BOBBIE DANIEL and JJ FLETCHER
For 25 years, Colorado’s Senior Homestead Exemption has been a critical lifeline for older adults and disabled veterans trying to keep up with rising property taxes. The exemption cuts 50% off the first $200,000 of a home’s actual value for qualified homeowners, typically reducing a property tax bill by about $500, though this varies with each local mill levy. In Mesa County alone, more than 11,000 residents depend on this relief, totaling roughly $5 million in local tax reduction every year.
The exemption is once again in jeopardy, not because of taxpayer protections like TABOR, but because of state spending choices. According to the June 2025 Economic and Revenue Forecast published by the Legislative Council, Colorado’s projected budget will fall short of the dollars needed to reimburse local governments for the exemption. If the state fails to act, the burden shifts directly onto local taxpayers.
After voters repealed the Gallagher Amendment in 2020 — which had long capped the ratio of residential to commercial property taxes — property tax bills surged across Colorado, hitting seniors on fixed incomes especially hard. While many counties saw revenues soar, Mesa County was one of the few that chose to lower its mill levy, deliberately easing the burden on local taxpayers already strained by inflation and rising costs.
Meanwhile, the state’s own financial challenges can’t simply be pinned on TABOR or its requirement to return excess revenue to taxpayers. Last year, Colorado faced a $1.2 billion budget deficit. Even if the state had decided to keep every penny of TABOR refunds owed to taxpayers, it wouldn’t have covered even half of that shortfall. The deficit is a direct result of spending decisions made at the Capitol — not constitutional protections that guarantee taxpayers some say over how much government can grow.
Against this backdrop, the Senior Homestead Exemption is more important than ever. Established by voters in 2000 and written into Colorado’s constitution, it allows seniors who’ve lived in their homes for at least 10 years — along with Gold Star spouses and disabled veterans — to receive this property tax break. But while the exemption itself is constitutionally guaranteed, the mechanism to reimburse local governments for this lost revenue is not automatic. Each year, the Colorado Legislature must appropriate general fund dollars to make local governments whole.
This hasn’t always happened. During budget crises in the early 2000s and again during the Great Recession, the state suspended funding for the exemption, leaving seniors without this crucial relief. Funding was restored in 2012, but costs have grown significantly as more people qualify and property values climb. In 2021, the program cost the state about $156 million; by next year, it’s projected to be close to $180 million statewide.
If the Legislature fails to fund this program now, the impact on local governments and vulnerable residents will be immediate. In Mesa County alone, roughly $5 million in additional taxes would fall directly on seniors and disabled veterans, many of whom live on fixed incomes. Local taxing entities like fire districts, schools, and the county rely on these reimbursements to maintain essential services. Without state funding, they would be forced to either absorb the loss or shift the burden elsewhere — meaning that either way, taxpayers ultimately pay the price.
We strongly urge the Colorado Legislature to honor its long-standing commitment to seniors, disabled veterans, and Gold Star families by fully funding the exemption through the general fund or by tightening other areas of the budget. Our seniors have spent their lives building these communities and deserve to age in place without the fear of losing their homes to rising taxes, while our disabled veterans have already sacrificed more than most of us ever will. Keeping this promise is far more than a budget decision — it is a moral obligation. The state should not balance its books by stripping away vital support from those who have paid the highest price. Colorado must stand with its most vulnerable citizens, not abandon them when they need us most.
