How Property Taxes are Determined

This post describes how the property taxes are calculated and what are the timelines in order to appeal if your property tax seems too high.

  • Property taxes are determined on odd-numbered years for 2-year tax periods. Property taxes determined in 2013 will be the taxes for 2013 and 2014
  • State statute requires that each property in the county be re-valued by the County Assessor in odd numbered years.
  • The property values are based on real estate market activities during the 18 month period that runs from January 1 of the previous odd numbered year to June 30 of the most recentĀ even numbered year.
  • For tax years 2013-2014, the sales from January 1, 2011 to June 30, 2012 are use.
  • If there are not enough sales in the 18 month period, the assessor can go back for up to 5 years from June 30th of the most recent even-numbered year.
  • Taxes are based on the assessed property values.
  • Assessed property values are calculated by multiplying the actual value by a percentage, assessment rate (assessed value = actual value x assessment rate)
  • The assessment rate is subject to change in odd numbered years, by the Colorado Legislature, as prescribed by the Gallagher amendment.
  • Currently, the assessment rate = 7.96 % for residential (29% for non-residential properties including vacant land)
  • Tax rate/Mill levy calculation: Taxing authorities (school boards, county commissioners, city councils, etc.), divide portion of the budget that must come from property taxes by total assessed value of the propertied in the county to arrive at tax rate.
  • Tax rate or mill levy are two different ways to express the same thing.
    • If, for example, the budget for is $14,600,000, and the total assessed property value is $365,000,000
    • Then the tax rate = $14,600,000/$365,000,000 = 0.04% per dollar of assessed value (or 40 mills or $40 per $1000)
  • An Example:Individual property tax is calculated by multiplying the mill levy and the assessed value:
    • Your property value = $200,000
    • Assessment rate = 7.96 % for residential (29% for non-residential properties including vacant land)
    • Assessed value = $200,000 * 7.96% = $15,920
    • Your tax = Assessed Value X Tax Rate = $15,920 * $0.04 = $636

Assessment Calendar

  • May 1 or earlier: Notice of Valuation (NOV) for real property, together with an appeal-form sent to taxpayer.
  • May 1 – May 30: Taxpayer must send notice of Real Property Appeal to Assessor.
  • June 28 or earlier: Assessor mails two copies of Notice of Determination concerning Real Property values to taxpayer.
  • July 1 and on: County Board of Equalization (CBOE) sits to hear appeals on the valuation of Real and Personal Property.

 

Disclaimer: This post is for informational purpose only. Please consult with your tax professional.

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