During a listing presentation in Colorado, a seller asks her broker when property taxes are due. The broker correctly explains Colorado's property tax payment schedule. Which of the following accurately describes when Colorado property taxes are due?
Correct Answer
B) In two installments: the first half due February 28 and the second half due June 15
Colorado property taxes are paid in arrears and may be paid in two installments. The first half is due by the last day of February (February 28 or 29 in a leap year), and the second half is due by June 15. Alternatively, property owners may pay the full year's taxes in one payment by April 30. If taxes are paid in full by February 28, no late fees apply. This payment schedule is established under C.R.S. § 39-10-104.5. Understanding this schedule is important for prorating taxes at closing.
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Colorado property taxes fund a variety of local government services and entities. Which of the following is NOT typically funded through Colorado property tax mill levies?
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A Colorado broker is closing a transaction on March 15. The seller has already paid the first half of the property taxes (due February 28) but has not yet paid the second half (due June 15). The annual property tax is $3,600. How should the property taxes be handled at closing?