Property Tax Updates in Colorado

Tax Professionals' Resource
February 22, 2013 — 1,515 views  
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The property tax rates in Colorado are much lesser when compared to the tax rates in other states. These taxes come under the control of the county where the property is located. The state government has no control over the property taxes imposed. Around 60 percent of the property tax which is collected is used to support the public school system in Colorado. 20 to 25 percent of the taxes are used to support the county government and the remaining taxes are used for supporting the municipal government and local taxing entities

An official who is known as a county assessor determines the value of all the properties in the county and sends the property owner a notice of valuation by May 1 every year. The amount of taxes to be paid will depend upon the value of the property, which is shown in the notice.

The property owners can examine the property records of the assessor and can also participate in the budget hearings held by the towns, cities, and school boards. The tax payer can also protest if he/she finds any irregularities in the assessor’s evaluation of property

Tax updates

Every year, the city councils, school boards, and the county commissioners hold public budget meetings to determine the revenue needed for the coming year’s operation. A mill levy is calculated by dividing the required revenue by the total assessed value of properties. Also, based on the inputs of the meetings, certain reforms are made to the tax rules. These updates to the tax rules will be put into effect when property taxes for the coming year are collected. Two such recent updates to the Colorado property tax rules are discussed below.

March 2012 update

The March 2012 Colorado property tax update includes the mandatory disclosure of facts not only for taxpayers but also for the concerned county, in the case of an appeal.  The taxpayer should disclose the actual rental income, itemized expenses, and rent roll data for 2 years. The county should disclose the data used and also the names of commercially available copyrighted publications, which were used as a reference, while evaluating the property. The county’s declaration of data is not automatic and should be requested.

December 2012 update

The property tax update Of December 2012 talks about a hike in the rates of property taxes in Colorado. In the elections held in November 2012, the voters of many metropolitan area communities in Denver, Colorado, approved the increase of property taxes. The increase in taxes came in the form of mill levy overrides and school bond issues. The residents of Denver voted to reduce the temporary tax credits on property by 4 mils. A mill levy override of 5 mils and a bond issue of approximately 3 mils were passed by The Denver Public Schools. These changes will result in an approximate increase of 12 mils in the Denver mil levy.

Apart from Denver, certain other school districts also supported an increase in property tax rates. The Jefferson County School District approved a mill levy override of approximately 6 mils. At the same time, the Cherry Creek School District passed a mill levy override of 5 mils and a bond issue of 1 mil. These increased rates will be applicable to the taxpayers in these districts from January 2013.

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