Section 1:
Notice of
Valuation |
Section States:
REAL PROPERTY
NOTICE OF VALUATION
THIS IS NOT A TAX BILL
Your property was valued as it existed on January 1 of the current year. The "current year actual value" represents the actual value of your property as of the appraisal date. The appraisal date is June 30, 2008, 39-1-104(12.3)(a), C.R.S. [Colorado Revised Statutes]. The tax notice you receive next January will be based on this value.
Expanded Explanation:
The Notice of Valuation is not a tax bill, but it is an official notification of the value that will be used to generate a future tax amount. This value amount represents a market value as of June 30, 2008. The property's physical characteristics are listed as they existed on January 1, 2009. |
Section 2:
The
Assessment
Percentage |
Section States:
An assessment percentage will be applied to the actual value of your property before property taxes are calculated. The assessment percentage for residences is projected to be 7.96%.
Generally, all other property, including vacant and personal property, is assessed at 29%, 39-1-104(1) and (1.5), C.R.S. A change in the projected residential assessment percentage is NOT grounds for protest or abatement of taxes, 39-5-121(1), C.R.S.
Expanded Explanation:
The Assessment Percentage determines the amount of the property's market value that will have taxes levied against it, and is set by the State Legislature. The assessment percentage for residential improved properties is the only variable rate. Currently, that rate is 7.96%. All other classes of property must generally utilize a 29% assessment rate.
As the mill levies are set by the taxing entities and will not be known until late in the year, it is impossible to accurately predict this, or any year's taxes, especially in a reappraisal year. Amendment 1 (TABOR) governs many revenue and mill levy issues for the taxing entities. Thus, an increase of value in a reappraisal year does not necessarily mean a tax increase for the following year. The formula for taxes is as follows:
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Market Value x Assessment Percentage x Mill Levy = Taxes
For example:
A $200,000 residence in an area with a 76.175 Mill Rate would be calculated:
$200,000 x 7.96% (Residential Assessment Rate) = $15,920 (Assessed Value)
then
$15,920 (Assessed Value) x .076175 (Mill Rate) = $1,213.00 (Approximate taxes due)
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