REAPPRAISAL IS UNDERWAY
FOR 2007 PROPERTY VALUATION
Odd-numbered years are "reappraisal years" in the state of Colorado, when all real property is reviewed and new values are put in place for ad valorem taxation purposes.
The Notice of Valuation you receive shortly after May 1, 2007 will reflect the value that the Assessor's Office has estimated for your property after analyzing data gathered during the 18-month "data collection period" that runs from January 1, 2005 through June 30, 2006.
In 2006, El Paso County reported a total of 224,553 parcels of Real Property. The number of parcels necessitates the need for a "mass-appraisal" to be used in estimating the value of each property.
All Real Property appraisal begins with the land:
The EPC Assessor's Office has 4 Land Appraisers on staff, responsible for making sure the land information on all 224,000+ parcels is correct and up-to-date. With development moving at such a rapid pace, areas recently visited could easily have been fully developed and made ready for new housing projects to begin within a very short time. Topography is always of prime importance, especially in the mountainous areas of the county, where current and future access can be questionable. Parcels sitting side-by-side may be so affected by topography that one lot is "buildable" while the one next door may never be a building site due to the extreme nature of the land.
Agrcultural land in (mostly) the eastern part of the county must be monitored closely. There is strict criteria that must be met to quality land for an agricultural classification. Most farmers and ranchers in our county maintain their property as full-time businesses and the property owners make their livlihood through the land. As such, the state has rigid agricultural guidelines in place ensuring that farmers and ranchers aren't placed in the same valuation category as city-dwellers, but are valued "apples-to-apples" with other agricultural property.
Commercial and Industrial land, as well as Natural Resources (Earth & Stone Mines, Mineral Interests, etc.) also each have their own classifications and are compared with other like-use properties to estimate the land value.
After the land has been valued:
El Paso County's 8 Residential Property staff appraisers have their hands full, ensuring that all new housing is added to the tax-rolls. They are also responsible for following up on building permits -- new garages, decks, finished basements, additions, alterations, etc., to ensure the "inventory" of the residence is current -- as well as following up on detrimental elements (demolitions, fires, or other possible obsolesence) that may possibly reveal the need to lower value on both new and existing properties. Ensuring that the property records are up-to-date and that the data they've collected is correctly reflected easily requires all 8 residential appraisers be "out in the field" 5 days a week.
Residential appraisers may visit a newly developed "future" housing area one week and upon driving past the same area a week or two later, often discover residences not just in the beginning stages of building, but already being finished.
The Assessor's Office also has 4 Commercial and Industrial Appraisers on-staff, each responsible for different improvement "uses." Commercial and Industrial property is valued by all three approaches to value: Cost, Income and Market. All three approaches are analyzed, with "like-use" properties compared against one another.
Huge commercial and industrial properties present a special challenge -- these large complexes don't go on the market often, making it difficult to find comparable sales. The Cost and Income approaches to value as well as the Market approach are used to help our appraisers estimate the property's worth.
Properties "exempt" from taxation fall into yet another category. These include property owned by the Federal, State, County and City, Schools, Churches, Charitable Organizations, etc. How a parcel is actually used, (rather than who owns it) plays a large part. A church for example, may own several properties -- but if the property isn't used for religious purposes it probably won't be considered "exempt" from taxation. An Application for Exemption must be filed with the State of Colorado, Division of Property Taxation for consideration as to their status. The property is then investigated by the Division and, ultimately, a determination is reached at that level as to whether the property qualifies for exemption. While property classified as "exempt" may pay no taxes, it does still maintain a value and the same rules apply for estimating the value of these parcels.
El Paso County's 16 Real Property staff appraisers have their hands full!
Personal Property comes into play:
Businesses and organizations must submit a "Declaration Schedule" yearly, listing their "portable or moveable" items. Personal Property includes equipment, machinery, furniture, security devices, signage, etc. If the actual value of this property is estimated to be over $2,500.00, Personal Property tax would then be due on the assessed value.
Public Utilities:
Public Utility parcels statewide (railroads, telecommunication towers, etc.) are valued directly by the Division of Property Taxation.
Once the Assessment Rate has been set by the State of Colorado General Assembly, the Mill Rates determined and the Assessor's appraisal staff have the information they've collected into the respective property records, it's the job of our Chief Appraiser to "pull it all together" by analyzing all the gathered data, and literally turning all the collected information into estimated values for each of the 225,000+ parcels in the county...an enormous undertaking, to say the least!
After the data has been collected:
The Colorado General Assembly sets the Assessment Rate (the percentage of the Actual Value upon which individual property taxes are calculated.) The individual entities (county, city, school districts, library districts, water and sanitation districts, etc.) must determine how much revenue they will need to allow them to operate. The percentage of revenue required from individual property classifications must be determined, in order to ensure the on-going ability of the enitites to perform their duties.
An Abstract of Assessment is then produced, outlining the total assessed value of each category of property and each use within those categories.
Complete Abstract of Assessment for 2006 Pamphlet