Property Taxes Frequently Asked Questions 
It is more important than ever to control expenses. One of the largest expenses faced by property owners in a year is property taxes. This expense usually appears on operating statements under the heading “Fixed Expenses,” but property owners should understand taxes are not fixed. This page presents frequently asked questions (FAQs) about property tax laws in Colorado (they vary from state to state) and examines ways of appealing property taxes as well as some of the potential pitfalls. Most of the questions are focused on real estate taxes, but many of the same guidelines apply to business personal property.
How is my property value determined?
When is my property assessed?
What is the difference between “actual” value
and “assessed” value?
Who sets the mill levy?
When am I notified of the new value?
What is the procedure for protesting my valuation?
Does the TABOR (Taxpayer Bill of Rights) Amendment of 1992 prevent my taxes from rising?
Should I hire a tax agent?
How is my property value determined?
The Assessor must consider a variety of market-based information in appraising different kinds of property. These include cost and depreciation data (the cost approach), sales of similar properties (the market approach), and earning capacity (the income approach). All three approaches are used to value vacant land and commercial property. The assessor is limited to using the market approach and gross rent multipliers when valuing residential property – condominiums, houses, and apartments.
Back to Top of Page
When is my property assessed?
Real estate is re-appraised every two years in the odd-numbered year. (Personal property is re-valued each year). The Assessor’s office is restricted to considering data from the 18-month period ending on June 30 of the year prior to the reappraisal. New 2013 values will be based on data from the period between January 1, 2011, and June 30, 2012.
The Assessor must consider the property condition as of January 1 of the revaluation year, but the date of value is June 30 of the prior year. The assessment generally remains stable for two years, unless there are changes in the property during the year.
Back to Top of Page
What is the difference between “actual” value
and “assessed” value?
The Assessor determines the “Total Actual Value” (market value) of real property. A percentage is applied in order to derive the “assessed” value.
Commercial property in Colorado is assessed at 29% and residential at 8.75%. Due to this difference taxes on a $1,000,000 commercial property will be more than 3 times as much as taxes on a $1,000,000 home.
The assessed value is multiplied by the mill levy to determine the annual tax bill.
Back to Top of Page
Who sets the mill levy?
Mill levies are based on the budgets of each taxing authority such as school, county, city, fire, water and sanitation, and recreation districts. These districts provide services to you.