If you live in Colorado, you should be receiving your new property assessment and tax rate notification by May 1, 2017. Below you will find definitions and information that I have summarized from the Arapahoe County Assessors website for your review. It is extremely likely that your tax rate will have increased significantly as property values continue to increase at an extraordinary rate.
If you disagree with the property valuation you can make an appeal with your county assessor. The deadline is likely June 1, 2017 to file an appeal. You cannot appeal the mill levy as that is determined by the individual taxing authorities.
If you disagree with the property value the assessor has determined, and are considering making an appeal, feel free to contact me and I will gladly provide you with comparable property sales for documentation to use in your appeal.
Property Value – In Colorado the county Assessor, for the county in which your property is located, is required to reappraise (determine the market value) all real property (land and improvements) every 2 years in the odd numbered years.
Property Assessment – Every 2 years the assessor determines the actual (market) value for all real and personal property. Then a percentage (assessment rate) is multiplied by the actual value to determine the assessed value. In Colorado the residential assessment rate is currently 7.96%.
Mill Levy – Is the tax rate applied to real property. The mill levy is set by individual taxing authorities in your area, these might include schools, county, fire, water, sanitation, library, recreation districts and metropolitan districts. Mill levies within a county can vary widely.
Property Taxes – The final property taxes for your home and/or land are calculated using this information. The actual value is multiplied by the assessment rate which is then multiplied by the mill levy. The residential rate in Colorado currently is 7.96%. The assessment rate for all other property, including vacant land, is 29%.
Example: A home which has a market value of $300,000 (actual value) x 7.96% (residential assessment rate) x .081265 (mill levy) = $ 1,940.61 (annual tax dollars). Please note this is only an example. Your value and mill levy maybe different. (300,000 x .0796 = 23,880 then 23,880 x .081265 = 1,940.60)