Editor’s note: The following letters are in response to our March 20 Problem and Solution column on tax relief for retired homeowners.
Freeze residential taxes

The premise of the Problem and Solution column is not complete. The problem also includes those who own properties that have increased in value dramatically over time while their economic status has not.

If you own stock that has increased in value, no tax is required to be paid on the profit until you sell it. Property owners are expected to pay property taxes based on this comparable “paper” increase in value.

I propose that residential property taxes be frozen at current amounts and then be allowed to increase yearly up to a maximum of some cost-of-living index. Taxes would be assessed on home additions, etc. This would allow municipalities to maintain a reasonable revenue stream. In return for this tax stability, an assessment could be made to the profit upon the sale of the property. Any costs involved with the sale of the home, such as real estate commissions, would be deducted from the sale price. The new owner would pay taxes based on the assessment at the time of purchase.

Assessments could be kept current and used for the new property owners. This would also allow for current property values for use in distribution of state funds for education and other purposes that are based on property values.

Spending caps such as TABOR will not prevent shifting the property tax burden to those who have properties that have increased in value at a disproportionate rate.

Stan Tetenman, Poland