It’s human nature: When the people who hand out goodies have no skin in the game, they will pay little or no attention to whether recipients are actually deserving. And so it is with Colorado’s “homestead” property tax exemption for those over 65.
Counties approve what is a partial tax exemption for seniors who’ve lived in their residences for more than 10 years, but the counties are reimbursed by the state. So only the state is on the hook for the loss in revenue.
As a result, most counties make little ongoing effort to verify that an eligible resident still lives at an address, a state audit has discovered. “Counties have no financial motivation to ensure they only approve fully qualified exemptions,” the audit said.
When sole property owners die, for example, the exemption is supposed to expire. But the audit found a surprising number of cases in which that did not happen.
The solution? As the audit says, give the state authority to seek reimbursement for improper payments, and put counties on notice.
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