Last Week in Tax News (May 22-26)

Change for Veterans

The California State Board of Equalization (SBE) has recently revealed the 2024 property value exemption amounts and the household income limit for the disabled veterans' property tax exemption. For the 2024 assessment year, the exemption amounts are $169,769 for the basic exemption and $254,656 for the low-income exemption. The household income limit for those claiming the low-income exemption is $76,235. For the 2023 assessment year, the exemption amounts are $161,083 for the basic exemption and $241,627 for the low-income exemption. The household income limit for those claiming the low-income exemption is $72,335.

Burning the Tax Away

Colorado creates a state sales and use tax exemption for the sale, storage, use, or consumption of construction and building materials used directly in rebuilding or repairing a homeowner's residential structure due to a wildfire disaster declared on or after January 1, 2020, but before January 1, 2023. No retailer may exempt any sale. The exemption is claimed as a refund by a qualified homeowner for each qualified residential structure for which a building permit and a wildfire rebuild exemption certificate are issued by a local government. The refund is equal to 4% of the estimated materials cost. The 3-year application deadline for a sales tax refund or refund of any use tax collected by a vendor does not apply to a refund claim for a wildfire disaster construction exemption, which must be filed on or before June 30, 2028 with the Colorado Department of Revenue and include the exemption certificate and each building permit identified in the certificate.

Fueled by Fire

L. 2023, H5263 (c. 19), effective 05/18/2023, gives the Town of Jamestown the authority to establish a program to provide property tax relief for every member in good standing of the Jamestown emergency medical services and volunteer fire department. Such tax relief may provide an abatement of up to $2,000 in property taxes due or the cash equivalent if no property is owned. This benefit is transferable to a surviving spouse until remarriage or death. No action can be taken to grant the abatement unless a majority of qualified electors vote to accept this authority at a town meeting.

Stay Connected

The Colorado Department of Revenue has published general guidance regarding sales tax on intrastate telephone and telegraph services, which are subject to sales tax whether the service is provided by public, private, mutual cooperative, or governmental corporations. Taxable telephone services include call conferencing, routing, switching, and cellphone / paging services. To be considered intrastate the service must originate and terminate within Colorado, and the service provider must charge and collect sales tax from customers, along with any applicable state-administered local sales taxes.

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