Tax and cold season has started. I missed a couple day’s work this past week due to a bad cold which, unfortunately, Pam picked up from me and is now suffering through.

For the life of me I can’t see any reason for phlegm. Or mucus. Nasty stuff!

Tax season has begun. We are starting to get various statements and tax notices (property tax) for our home and our lot. We will get a break this year on our home property tax due to a “Senior Exemption.”

Our annual property tax is around $257.00. This year our payments will be half of the normal amount:

Half-year tax bill

Full-year tax bill

We don’t know how the county can afford this credit, but I had applied for it last year since I turned 66  in 2018. (Property owner has to be over 65.) While the savings of $128.00 per year will not be a windfall, it’s a psychological boost. Just think: Property taxes of $128.52 per year!

No wonder Midwest property taxes look so high to us!  This comes while Pam is house-hunting, and one of the things she checks is taxes on the various properties. Not only is our Colorado tax rate very low compared to other states, the 50% reduction is unheard of. Most of the Midwest properties Pam has viewed have tax burdens of $150.00 per month on up to several hundred dollars per month. This has to be accounted for when we calculate potential monthly payments, to determine if we can afford a specific property into retirement or not.

As a side note, property taxes on The Lot (seven acres in Park County) have gone up every year and are now approaching $100.00 per acre. Our tax bill for The Lot is considerably higher than for our home in Mesa County. This tax increase is mostly due to recent referenda passed relating to fire protection and emergency response services in Park County’s rural areas.

Income tax preparation will be a bit different this year due to Pam’s retirement in 2018. The State of Colorado offers an exemption for a portion of retirement income — plus our gross income will drop; we should be in a lower (we hope) tax bracket. We’ll have to be sharp to claim exemptions we now qualify for to minimize our tax burden. Another retirement challenge!

That’s it for now. Thanks for looking in!

Pam’s Penny:

Temps are not below zero, at least.  Almost inevitable that when Fields has hacking coughs around our fairly-compact square footage, I will get whatever he has — no matter how much I clean door knobs, light switches, cupboard doors etc.  Murphy’s Law.

(Internet graphic.)

Happy Trails.