Legislators Consider Increasing Tax/Rent Rebates for Seniors

Colorado legislators, led by Senator John Kefalas, D-Fort Collins, are considering legislation to make significant changes to the Property Tax, Rent and Heat Credit program to increase eligibility, and the amount of the tax rebate. At the recommendation of the Legislative Audit Committee, Senator Kefalas is seeking major reforms in the program.

The rebate program provides low income seniors and disabled individuals a maximum of $792 in housing and heat rebates. The proposed
legislation would increase the maximum rebate to $892 per year for those eligible.

The Audit Committee recommended that the Dept. of Revenue and the Dept. of Human Services should collaborate on marketing and outreach to make more people aware of the program. This recommendation is based on a finding that there has been more than a 25% decrease in utilization of the program in the past 5 years.

Numerous reasons were cited for this with lack of awareness being significant. Under current law, individuals often become ineligible
for the program when the Social Security cost of living adjustment is received because the maximum income eligibility guidelines do
not increase at the same rate.

The proposed legislation seeks to make more people eligible for the program by increasing the maximum amount of income that people can earn each year from $12,639 to $14,937. Couples can currently earn $16,731; under the proposed legislation couples would be able to earn $20,163 per year. Individuals whose income is between 100% to 135% of poverty receive a flat rate rebate of $300 per year. Individuals whose income is less than 100% of the federal poverty level would receive a larger rebate based on eligible expenses.

The audit report also noted that more than 40% of the people who applied for the program in previous years did not receive the full
amount of the rebate to which they were entitled. The proposed legislation seeks to correct these underpayments.

Proceeds from the rebates are often used to pay utility bills, buy medicine, or groceries. For many low income individuals, the rebate
represents about half of one month’s income. The rebate is an important source of income for low income seniors so they can continue to live independently.

Individuals who care about increasing the rebate for low income seniors are encouraged to call their legislator and indicate their support for the proposed changes to SB 14-014.

Individuals can claim the 2012 rebate until December 31, 2014 and the 2013 rebate until December 31, 2015. For a copy of the application form or more information, seniors can call 303-333- 3482. Many individuals are eligible for other benefits as well, such as help with paying the Medicare Part B premium and food stamps.

Eileen Doherty, MS is the Executive Director of the Colorado Gerontological Society since 1982. She can be reached at Email Eileen.

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