Colorado Property Tax

CALCULATION OF PROPERTY TAXES ASSESSED VALUE

Statute provides that the actual value of property is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate,” and the resulting value is called the “assessed value.” The assessment rate is 29 percent for all properties except residential and producing natural resource properties. The residential assessment rate is established by the legislature every odd-numbered year in order to maintain the tax burden balance between residential properties and all other properties. It is currently 7.96 percent for assessment years 2005 and 2006. Your property taxes are calculated by multiplying the mill levy or tax rate by the assessed or taxable value of your property.

EXAMPLE:

The actual value of Mr. Jones’ home is $200,000. The Notice of Valuation shows the current residential assessment rate is 7.96 percent.

Actual Value x Assessment Percentage = Assessed Value $200,000 x 7.96% = $ 15,920

To determine the amount of property taxes, multiply the assessed value times the decimal equivalent of the total mill levy. Using the above examples, Mr. Jones’ taxes would be calculated as follows: Assessed Value x Mill Levy = Taxes $15,920 x .075541 = $ 1202.61

APPEALS PROCESS YOUR RIGHTS UNDER THE LAW!

If you disagree with the actual value placed on your property, you may present oral or written objections to the assessor. Appeals for real property must be postmarked or delivered to the assessor on or before June 1. Personal property appeals must be postmarked by June 30 or submitted in person to the assessor by July 5. The assessor must make a decision on your appeal and mail a Notice of Determination to you by the last regular working day in June for real property and by July 10 for personal property. Effective January 1, 2006, any county may elect to alter their real and personal property appeal period by expanding the assessor’s time to answer appeals from the last regular working day in June to the last regular working day in August. The extension gives the assessors an additional 60 days to respond to taxpayers’ appeals. If you are dissatisfied with the assessor’s decision, you can appeal to the county board of equalization (county commissioners) by July 15 for real property and by July 20 for personal property. The county board of equalization conducts hearings through August 5. The board must notify you in writing within five business days after its decision is made.