Real Estate Tax Guide Colorado

Colorado real
estate taxes

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Colorado Real Estate Taxes

Property Taxation Guide

How Property Taxes are Calculated
Your property taxes are determined by multiplying the tax rate (set by local government taxing entities) by the assessed or taxable value of your property.

Assessed Values
Assessed values are calculated by multiplying the actual (market) value by 29% for all property except residential. The residential assessment percentage is subject to change by the Colorado Legislature. Currently, this percentage is 7.96%. This amount is 13% less than last year. So even if your Current Actual Value for your residence for 2003 increases, this increase in value will be offset to some extent by the reduction in the assessment rate. By constitutional mandate, the change in percentage maintains the present balance of the tax burden between residential and all other taxpayers.

Actual Value

X

Assessment Percentage

=

Assessed Value

$150,000

X

7.96%

=

$11,940

What is a Mill Levy?
The mill levy is the tax rate that is applied to the assessed value of your property. A mill is 1/10 of $.01 or $.001 (one thousandth). A mill levy is the number of dollars a taxpayer must pay for every $1000 of assessed value. The taxing entity determines the amount of dollars, based on its budget request to the County Commissioners.

Determination of Tax Rates
Where you live within a county determines the taxing entities to which you will pay your taxes.

Example: Mr. Smith's home is provided services by four taxing entities. His total assessed value is determined to be $11,940.

County tax rate = 2.4686%

City Tax rate = .8750%

School district tax rate = 5.2110%

Water and Sanitation tax rate = .0960%

Total Tax Rate = 8.6560% or mill levy

Therefore, Mr. Smith's tax bill is calculated as follows:

Actual
Value

X

Assessment
Percentage

X

Tax Rate
=
Assessed Value

$150,000

X

7.96%

X

.086506
=
$1,032.90

Limitations on Revenue
Colorado law prohibits yearly revenue increases by taxing entities unless one or more of the following occurs:

	An election is held and voters approve, in advance, an increase above the current revenue limitations.
	Local growth - determined by either a percentage change in student enrollment for school districts or based on a new construction formula for all other districts.
	Inflation - defined as the percentage of change in the United States Bureau of Labor Statistics Consumer Price Index for Denver and Boulder. Note: Revenue increases are limited to a maximum of 5.5% even if inflation exceeds this percentage.

The Assessor
The county assessor is responsible for valuing all property in the county, as directed by state laws. The assessor's goal is equalization of property values to ensure that the tax burden is distributed fairly and equitably among property owners.

The Taxpayer
As the property owner and taxpayer, you have specific rights and responsibilities in the assessment process. You have the right to examine the assessor's property records and to participate in the budget hearings held by school boards, cities and towns and special districts that levy taxes on your property. You also have the right to protest your property's value if you disagree with the assessor's valuation. Additionally, you have the responsibility to provide accurate information to the assessor about property you own. You also have the right to examine the records on land and buildings, as they are public information.

Notice of Valuation
The assessor is required to send you a real property Notice of Valuation by May 1 of each year. The notice describes the property you own, gives the actual or market value for both the prior and current year, and describes the process to present your objections to the assessor. When you receive a Notice of Valuation, study it carefully! The value shown on the notice affects the amount of taxes you must pay next January. The deadlines for appeal are statutory. If you feel the value the assessor placed on your property is incorrect, you may want to discuss the value with the assessor.

The assessor reports the total value of taxable property to each taxing entity (fire district, school district, etc.) so they can set the appropriate tax rate (i.e. the mill levy).

Further Information
For more information, go to http://www.dola.state.co.us/propertytax

If you have any questions regarding this information, please give me a call or e-mail. We look forward to assisting you with all of your real estate needs.