You should either have recently received a postcard from your County’s tax assessor or will be receiving one soon about the current value of your home or property and of course, the taxes based on their valuation.
This happens every two years, and naturally, prompts a lot of questions that we at Windermere want to help you with. Below, you’ll find everything you need to know about the Colorado property tax notification you received in the mail from your local County:
How does Colorado property tax work?
Let’s talk about the valuation process. A good thing to know is that Colorado property tax rates are the third-lowest in the whole country. So, effectively on average, Colorado property tax values average just over a half of a percent. In summary, the way this works out is that property taxes in Colorado are quantified based on the assessed value. For example, if the property is valued at $500,000.00, the tax rate will be around $2,500.00 in a year.
My property is worth more than what is stated on this postcard – why?
You may find yourself confused thinking about the fact that your property value is higher than what is noted on the Colorado property tax notification you received. You aren’t alone!
By statute, your county uses what is called the market approach to value. What that means is your county will consider recent (within two years) local sales to determine the approach to your value with comparable sales. Many areas use an algorithm, and while this is a great scientific approach, the reality is that when things are done by a computer, oftentimes we end up with valuations that don’t seem to make sense.
What is a MILL?
Each district, such as a fire district, the police district, the library district, the school district, and so on – has its own particular MILL levy attached to it.
Can I protest my property’s valuation?
Yes. If you disagree with your property’s valuation, you can either protest it online or in writing. The important thing to know here is that if you do protest, the local county must get back to you with what’s called a Notice of Determination by June 30 where they will either agree or disagree with your assessed valuation. If you want to appeal beyond that, you can.
What does my Colorado property tax pay for?
They cover things that are provided to you locally. This could be anything from your local schools, local police, and first responders, local roads and transit, and other like services. All the revenue from property tax stays within the County.
Is this really what my home is worth?
At Windermere, we can help you with that! There is no fee associated with this service, and we are just happy to inform you what your home is worth. We approach this in two ways:
- Evaluate the sales from the two-year comp window and have our experts put together a list of sales
- Show you what your home is worth today and put together a market analysis as this is a much different market than it was two years ago
Topics covered in this article are based on a recent episode from the Colorado Living Podcast — hosted by Eric Thompson and produced by Windermere Local — your hub for real, raw, and authentic insights on the Colorado real estate market. Check out the full episode on ‘Your Property Tax Notification’ at the link HERE or using the player below.