Property Tax Valuation increase

The time has come for most of us to find a Property Tax Valuation notice in the mail. This year you will notice a significant increase in your home's value. There's good news, and then there's just news.

First let's talk about Tax Assessor's Value vs. Market Value.

Tax Assessor's valuation, also referred to as "Actual Value," is determined by real market data, "like" property comparisons, and information derived from property appeals.

"Market Value," or the price that a property will sell for in today's market, is determined by how much a home would sell for under normal conditions and based on area specific data and expertise in the specific market.

The Valuation you may have received was based on home property values through June 2022. The Assessment Rate you pay is probably around 6.8%. The tax you then pay is based on that valuation. In Colorado, an average of .6% of a property's assessed fair market value is paid as property tax each year. https://bouldercounty.gov/property-and-land/assessor/tax-calculation/

The positive is that on average, Colorado is amongst the lowest property tax rates in the country. In fact, we are third lowest, the lowest being Hawaii and the highest, New Jersey. As a state, Colorado has an average of .51%. Within that, Boulder County sits at .68%, still well below the national average, which is .99%.

That being said, you've most likely noticed a hike in your valuation this year. This affects not only the County's valuation of your home, but the tax bill that follows along. Many wonder why such a drastic increase in valuation occurred. We know that county Assessors, by law, reset a property's value every two years. The latest value is set as of June 30, 2022. The recent increase in property values, especially during the 2021-2022 real estate frenzy are reflected in these increased prices. The percentage of increase will vary depending on local housing conditions, but in general, values should be elevated between 25% and 35%.

So what can you do about it? According to the Valuation that you received, you have a few options. The window to file an appeal is very short, but well worth the try. In Boulder County, the deadline to file is June 8, 2023 (and, "the sooner the better"). The Boulder County website to file an appeal is https://bouldercounty.gov/property-and-land/assessor/appeals/. Be prepared with comparable home sales before June 30, 2022.

Keep in mind that if you are a senior, you qualify for an exemption. To find out more, contact the county at 303-441-3530 or go online to https://bouldercounty.gov/property-and-land/assessor/senior-exemption/. If you have Disabled Veteran status you can call 303-284-6077 or go online to https://bouldercounty.gov/property-and-land/assessor/veteran-exemption/.

If you need comparable sales to help with your appeal, please reach out to your local realtor for help.