On April 6, 2020, Colorado Gov. Jared Polis signed Executive Order D 2020 012, which, among other things, allowed county treasurers to extend deadlines and waived accrued interest on property taxes, intended to assist property owners struggling to deal with the COVID-19 pandemic.
As tax payments for the year 2020 have begun to come in, it is clear that, despite the pandemic and the emergency actions it prompted, Larimer County Treasurer Irene Josey is on track with prior years’ collection rates, and almost all the money that goes on to fund schools, city and county operations and fire districts has been paid.
“The economic impacts of COVID-19 are significant, and threaten to undermine the economic stability of many Coloradans and local businesses,” the Governor wrote in the order. “The risk of contamination posed by COVID-19 has necessitated closure of multiple businesses. Employers and employees in virtually all sectors of the economy have been hard hit. We must take action to shore up economic security, employment, community cohesion, and community recovery.”
As of the week of August 20, the Larimer County Treasurer’s Office has collected 98.73% of property taxes, a rate even higher than the same week for 2017 taxes, which were collected prior to COVID-19.
Property taxes, although collected by the county treasurer, are levied by a variety of different taxing authorities. Josey reported that 52% of the total property tax revenue the treasury collects is levied by school districts.
Half of all revenue to the Thompson School District comes from local taxes and fees, according to the National Center for Education Statistics.
“When the pandemic hit, school districts had to change,” Josey said. “And they needed funding to do what they needed to do.”
Property taxes are paid one of two ways: either in two separate installments, one in February and one in June, or as one lump sum in April. The executive order waived any interest resulting from late payments, which allowed taxpayers more flexibility if they needed to delay payments.
Property taxes are also collected one year in arrears, so the treasurer did not start collecting 2020 taxes until this year.
The treasury has collected $642.6 million in property taxes so far this year.
Josey said that implementing the assistance allowed by the governor’s executive order was extremely important to her.
“We were taking lots of calls,” Josey said. “And it was just heartbreaking to hear some of those stories.” Residents, business owners and others with property tax bills were desperate, she said.
But the ability to quickly turn around and keep the money flowing while still offering assistance to taxpayers was the result of an ability to rapidly change how business was done, according to Josey and her staff.
“Even though the building was closed, we said ‘OK, we’ve got five other ways for you to pay,” said Brigitte Grimm, deputy treasurer and public trustee for Larimer County. “I think it was a very impressive shift.
About one third of property taxes are held in escrow by mortgage companies, Grimm and Josey said, which also eased some of the pressure.
“A lot of our success came because we were able to change the way we do business,” Josey said.
