Real Property is revalued every odd-numbered year. Property tax calculations consist of several components: property classification, actual value of the property, assessment rate, assessed value and tax rate.
Property is classified according to it’s actual use as of January 1. The property’s classification determines the rate at which the property will be assessed.
Actual Value
Residential property is valued using only the market approach to value. In this approach, the value of the subject property is based on an analysis of Comparable Sales.
In accordance with § 39-1-104(10.2)(D), C.R.S., the actual value for assessment years
2025 and 2026, reflect the market conditions that existed on June 30, 2024, as reflected by sales that occurred from July 1, 2022, through June 30, 2024. However, if insufficient data existed during that time frame the statute authorizes the Assessor to expand the data collection period back in time by adding one or more additional periods of six months (up to a period of five years preceding June 30, 2024). If sales indicate a sharp increase or decrease in value during that time period, we must also apply a time trend, as an adjustment, to ensure that all values were equal to the June 30, 2024 appraisal date.
Assessed Value
For property that is classified residential the current assessment rate is 6.8% of the market value (the actual value for residential properties) for local government and 7.05% for the school districts, vacant land is 26%, agricultural is 25%, commercial real is 25% and personal property, is 26% of actual value.
Multiplying the actual value by the appropriate assessment rate results in what is known as the property’s “assessed value”
Tax Rate/Mill Levy
Each year, county commissioners, city councils, school boards, and governing bodies of special districts, also referred to a political subdivision, determining the revenue needed to provide services the following year (taking into consideration the restrictions in revenue increases as outlined by TABOR).
Each political subdivision calculates a tax rate based on the revenue needed from property tax and the total assessed value of all real and personal property located within the political subdivisions’ boundaries. This tax rate is called a mill levy, because it is calculated in mills.
Revenue from property tax $1,398,000 ÷ total assessed value of $1,000,000,000 = .013980 or 13.980 mills. All the tax rates/mill levies of the various taxing entities providing services in your tax area are added together to form the total tax rate/mill levy.
Here is a sample of how a total tax rate/mill levy is achieved.
County tax rate .013980
City tax rate .008752
School District tax rate .052116
Water & Sanitation tax rate .000693
Total tax rate .075541 or 75.541 mils
Public notices of budget hearings are published in the local newspaper. The public hearings are usually scheduled in September or October. By attending budget hearings, taxpayers may participate in the budget process and become informed about the quality and cost of services provided in their area.
The Assessor classifies and values the property. The various taxing entities determine the tax rate/mill levy.
Notice of Valuation
Real Property Notices of valuation are mailed no later than May 1 of each year, even though a revaluation only occurs every odd-numbered year. The notices list the location, classification, characteristics germane to the value, and the actual value of the property for both prior and current years.
Protest and Appeal Rights
If you disagree with the actual value or classification placed on your property, you 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, or the first Monday after if June 8 should happen to fall on a weekend.
The Assessor must make a decision on your protest and mail a Notice of Determination to you by the last regular working day in June for real property.
If you are dissatisfied with the Assessor’s decision, you may appeal to the County Board of Equalization (CBOE) by July 15th for real property. The CBOE conducts hearings through August 5th. The CBOE must notify you within 5 business days of the hearing of its decision.
If you are dissatisfied with the CBOE decision, you have 3 avenues to pursue further. You may appeal to an arbitrator, district court or the Board of Assessment Appeals within 30 days of the date the decision was mailed.
These timelines are not negotiable. The only exception is if the Board of County Commissioners approves the Assessor’s request to use the extended time period for protest and appeals.
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