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Property Tax Rebate

In response to the dramatic increase in residential property tax valuations in 2023, Mayor Mellon and Town Council have taken action by approving a $650,000 local property tax rebate for residential homeowners. This local rebate, when combined with a state-legislated property tax reduction of $376,948, will provide over $1 million in tax relief to Johnstown’s residential property owners.

Following the recent property value reassessments conducted by County Assessors in 2023, initial estimates indicated a $1.19 million increase in residential property taxes.  In light of this, the Council devised a plan to provide a residential property tax rebate to homeowners and incorporated the provision into the 2024 Budget.  The adoption of Resolution 2024-09 on February 21, 2024, finalizes the rebate plan. This initiative aims to directly assist homeowners burdened by rising property tax obligations.

Rebate checks will be processed and mailed to residential property owners in late August or early September after the receipt of property tax revenues by the Town.  Distribution will be based on individual home values, ensuring equitable distribution across the community. To qualify for the rebate, homeowners must fulfill their 2023 tax obligations by June 15, 2024. The process is streamlined, with eligible recipients automatically receiving the rebate without any additional steps required.   This tax rebate will reduce the Town’s increase in residential property taxes from the original 35.64% to 5.06%.

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Frequently Asked Questions (FAQs)

  1. How do I know if I qualify for a rebate?
    If you own property that the County has classified as residential property in the Town of Johnstown and are listed as the property owner of record with Weld or Larimer County Assessor then you qualify.
     
  2. How much will the rebate be?
    The rebate amount will vary depending on the value of your home.  The $650,000 approved for the rebate will be divided proportionally amongst residential property owners who pay their 2023 property tax bill by the June 15, 2024, deadline. Tax due dates are set by the State of Colorado in  C.R.S. 39-10-102(1)(b)(I); C.R.S. 39-10-104.5
     
  3. Do I need to do anything to receive my rebate?
    You will receive your rebate automatically if you are the property owner of record with Weld or Larimer County and your 2023 tax bill has been paid in full by the June 15, 2024, deadline.
     
  4. How will the rebate be issued?
    The rebate will be issued in the form of a paper check that will be mailed to the property owner of record at the address provided by Larimer or Weld County.  The rebate check will be valid for 180 days after issuance.  Checks not cashed within 180 days will be void and will not be reissued.
     
  5. When can I expect to receive my rebate?
    Rebate checks will be issued in late August and September.  If you qualify for a rebate, we expect that you will receive your check no later than October 7th.  We plan to have the checks ready by the end of September but it may take the post office a few days to get them delivered.
     
  6. Can I have the funds direct deposited into my account or come by and pick up the check?
    No.  Checks will be mailed to the owner of record as provided by Weld and Larimer Counties.
     
  7. Why is it taking so long after I paid my taxes to get the rebate?
    There is a delay between the date that taxes are due to the county and the date that those monies are remitted to the taxing entities.  The Town has to wait until all funds are received from the County before we can issue the rebate.

  8. How was the $650,000 amount determined?
    Upon discovering that the preliminary increase in residential property tax revenue to the Town exceeded 35%, the Mayor and Town Council devised a plan to provide a rebate to residential customers.  The plan involved incorporating a $1 million rebate into the 2024 Budget, based on the anticipated 35% or $1.19 million increase in revenue. 

    However, during the Town’s budget process, the state legislature passed SB23B-001, altering how residential properties were valued.  This legislative change resulted in a decrease in revenues to the Town by $376,948.  This decrease in revenue, combined with a rebate of $650,000 amounts to $1,026,948.  Although this exceeds the initial planned rebate, it will still enable the Town to maintain current service levels. 

  9. How will this rebate affect the overall Town budget?
    The passage of SB23B-001 has resulted in an approximate decrease in revenues of $376,948.  The rebate, which will be processed as an expenditure of $650,000 from the General Fund, the primary operating fund for the Town, has been included in the 2024 Budget with provisions of $1 million. Although the additional $26,948 decrease in revenues will affect the fund balance, it should not have an impact to service levels.
     
  10. Is this tax rebate related to TABOR?
    No. This property tax rebate does not have anything to do with TABOR. This property tax rebate is a voluntary initiative by Council intended to reduce the tax burden on residential property owners. 
     
  11. What resources are available if I have questions? 
    Contact the Town of Johnstown Finance Department at 970-587-4664.