Guide To Real Property
Pursuant to Colorado State General Property Tax Law,
the duty of the Assessor is to
"Discover, List, and Value"
all real property.
The Assessor's Office is required to appraise
all real property and to estimate value
for ad valorem taxation purposes.
How does the Assessor estimate value?
The assessment date is January 1 of each year, for taxes payable the following year. For residential properties, the Assessor must estimate actual market value. This is based on size, amenities, location, etc., then compare to like-properties that have sold during an eighteen-month time span. Those sales nearest to the end of the eighteen-month period would be the most representative.
Residential properties may only be valued by the Market approach pursuant to Colorado Revised Statute 39-1-103(5)(a), which reads in part "...The actual value of residential real property shall be determined solely by consideration of the market approach to appraisal."
For most non-residential property, the Assessor considers the 3 main approaches to valuing property: Market, Cost, and Income.
How do I know the actual value the Assessor has placed on property I own?
In May, a Notice of Valuation (NOV) is mailed to property owners. This is NOT a tax bill! The purpose of the NOV is to notify you of any change in your property valuation and inform you of your right to appeal the new value.
What if I disagree with the total actual value of my property?
Gather as much information as you can on similar properties in your neighborhod. Compare the features of these properties to the features of yours. If there are differences, the values of the properties will probably be different.
If you've recently purchased your property, what was the sale amount? If you're considering selling, what price are you thinking of asking? How do those values compare with the estimated value the Assessor has placed on your property? What do you believe your property value should be?
If, after researching surrounding property values, you still think your value is too high, you may wish to Appeal the value. On the reverse side of your Notice of Valuation there is an Appeal form. Follow the instructions on the form and submit it to the Assessor. Your Appeal will be reviewed and a response will be mailed to you in the form of a Notice of Determination (NOD) by the last working day in June.
Residential property owners only also have the option of Appealing their valuation through our web site, beginning May 1.
Further information regarding Appeals can be found on the "Appeal Process" page of our web site.
Where do I find comparable properties?
All property sales should be recorded with the Clerk & Recorders Office. Access to these property sales is then given to the Assessor's Office. This is "public information" and your Assessor's Office will be happy to assist you in locating comparable property sales data. A real estate office is another good source for information on sold properties.
Residential property owners can also find comparables on our web site, linked through our "Property Record Search" page.
My NOV is divided into Land Value and Improvement Value, even though I didn't make any improvements to my property. Why?
"Improvement" is the terminology used by the Department of Property Taxation to identify everything added to or put on the land, such as buildings. If you have made no changes to an existing structure but you still have an increase, this would reflect the market showing an increase in value.
I agree with the total actual value placed on my property, but I'm afraid my taxes will go up accordingly. Should I appeal?
NO!!! The Assessor's Office has no control over tax rates! The assessment rate is set by the State Legislature. Mill levies are set each year by taxing authorities. The mill levy is the total percentage of each tax bill going to schools, fire districts, water and sanitation districts, library districts, governmental agencies, and other special districts that provide services to the area in which your property is located. Each tax district differs. The following is an example of how property taxes are calculated:
$100,000 (market value) x .0796 (current residential assessment rate) = $7,960 (assessed value)
then
$7,960 (assessed value) x .054454 (hypothetical mill rate) = $433.45 (approximate taxes due)
The Notice of Valuation says the Assessment Rate on my residential property is 7.96%...yet the noted change in value does not reflect this percentage, why?
7.96% is the Current Assessment Rate for residential property, set by the State Legislature, not the percentage of Increase or Decrease in market value. This is the percentage of the estimated Market value upon which your property tax is calculated.
TAXPAYER REMEDIES -- YOUR LEGAL RIGHTS
If you disagree with a change in value
You may file an Appeal with the County Assessor. The following deadlines must be followed in order to preserve your legal rights:
If the date for filing any report, schedule, claim, tax return, statement, remittance, or other document falls upon a Saturday, Sunday, or legal holiday, it shall be deemed to have been timely filed if filed on the next business day. ยง39-1-120(3), C.R.S.
Real Property Appeals: Begin on May 1 and conclude on June 1.
Mailed appeals MUST be postmarked by June 1. Appeals made by phone, FAX, or walk-in MUST be received by June 1.
Appeals made by Internet (Residential ONLY) MUST be submitted by June 1.
Please file your appeal in one format only! For example: If you've chosen to file your residential appeal through our web site, do not mail, phone, fax, or walk-in an appeal on the same property again!! Information then has to be "matched up" causing a severe slow-down in the appeal process and delays in returning decisions to all appeals!
If you are dissatisfied with the Assessor's decision: You may appeal to the County Board of Equalization (CBOE) by July 15. The CBOE conducts hearings through August 5. The Board must notify you in writing within five business days after their decision is made.
If you are dissatisfied with the CBOE decision: You may appeal to the Board of Assessment Appeals (BAA), to the County Commissioners for Binding Arbitration, or the District Court of the county in which the property is located. Appeals to the BAA or District Court must be filed within 30 days of the CBOE decision.
If you are dissatisfied with the decision of the BAA or District Court: You may appeal to the Court of Appeals within 30 days of the BAA decision or 45 days of a District Court decision.
Decisions reached through Arbitration are final and not subject to review.