2023 Real Property Notice of Evaluation for Jefferson County, COIf you own a home in Colorado, you've no doubt opened the dreaded new property tax assessment notice.  We all knew this was coming, but it's still a tough pill to swallow!  As real estate agents, we want to make sure our clients understand how these changes will affect them.

We worked with our friends at Land Title to breakdown all things about Colorado's Property Taxes to share with all of you.

When and how much? 

In late April, county assessors mailed out valuation notices based on property values as of June 30, 2022, which also happens to be close to when home values peaked in Colorado.  On average, the increase is expected to be 25% to 27%, and in some counties (including resort markets) they may be as high as 65% or more. 

What are property taxes and what are they used for?

Property tax revenue in Colorado supports public schools, county governments, special districts, municipal governments, and junior colleges. All of the revenue generated by property taxes stays within your county. Property taxes do not fund any state services. The county assessor is responsible for discovering, listing, classifying, and valuing all property in the county in accordance with state laws. The assessor’s goal is to establish accurate values of all property located within the county, which in turn ensures that the tax burden is distributed fairly and equitably among all property owners.  Real property (aka your house) is revalued every odd-numbered year. 

Is this definitely happening? 

As of now, yes, but the increase could change due to Govenor Polis' proposed bill, changing how property taxes are determined for the next 10 years. The bill will be on the ballot in November for Colorado voter's to have their say.  One hiccup for approval is that this proposal would most likely result in lower TABOR Refund checks for all Colorado taxpayers (not just homeowners).  

What is the current residential tax rate and how is it calculated?

For property that is classified as single family residential, the current assessment rate is 6.765% of market value. The assessment rates for most other types of property are listed under the 2023 Assessment Rates chart.

How do we compare to other states?

Historically, Colorado has very low residential property taxes in comparison to other states. According to an analysis by the conservative Tax Foundation. Colorado ranked 47th in property taxes paid as a percentage of owner-occupied housing value in 2020, according to the foundation.  We will be interested to see where Colorado lands in 2024.

Why did accessed value go up so dramatically this year?

One of the key causes is historic spikes in real estate values across the state.  Along with that, Colorado voters repealed the Gallagher Amendment in 2020, which had limited property tax increases since it passed in 1982.

How does one calculate assessed values?

Multiplying the actual value by the appropriate assessment rate results in what is known as the property’s “assessed value.”

Actual Value $275,000

Single Family Res. Assess. Rate ($275,000) × 0.06765 = Assessed Value $18,603.75

How does one calculate property taxes?

Assessed Value $18,603.75 × Tax Rate 0.075541 = Taxes Due $1,405.35

How does one protest and appeal?

If a property owner disagrees with the actual value or classification placed on the property, they may present oral or written objections to the assessor. Protests for real property must be postmarked or delivered to the assessor on or before June 8.  

The assessor must make a decision regarding the protest and mail a Notice of Determination by the last regular working day in June for real property. Any county may elect to extend the Notice of Determination mailing date from the last regular working day in June to August 15.

If the property owner is dissatisfied with the assessor’s decision, they may appeal to the county board of equalization by July 15 for real property. The county board conducts hearings through August 5. If the county has opted for the extended appeal period, one must appeal to the county board by September 15. Under this option, the county board conducts hearings through November 1. The county board must notify the property owner in writing within five business days of the date of its decision. If the property owner is dissatisfied with the county board’s decision, they may appeal to an arbitrator, district court, or the Board of Assessment Appeals within 30 days of the date the decision was mailed.

For additional information regarding property taxation procedures in Colorado, contact the Colorado Division of Property Taxation at (303) 864-7777 or contact your county assessor. Due to weekends and holidays, the statutory dates above are not necessarily the dates to be used by taxpayers and counties. Please contact your county assessor for more information on adjusted dates.

Posted by Jess Feaster on
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