Shock, Appeal, Relief – Colorado Property Tax Assessments

Front Range homeowners are increasingly concerned with their property tax assessment. The Colorado Assessor’s Office’s recent data indicates that single-family property values have increased a median of 33% between July 2020 and June 2022. Notably, surrounding counties in the Front Range region have seen particularly large jumps in residential values, with Larimer County witnessing an increase of 40% and Douglas County seeing a rise of 47%. 

The last two years’ surge in demand among buyers and shortage of inventory caused home prices to soar, and now property taxes reflect this boost in value. Additionally, in 2020, voters repealed a state constitutional amendment that would have automatically lowered reassessed property values. This decision was made to fund local services better and assist businesses that were struggling to pay high property taxes.

Don’t confuse the notice as a tax bill; you can expect to receive the bill around January. While the new amount may shock homeowners, know that the state legislature is considering a bill to allow local governments to lower property taxes temporarily.

Unsure if your property tax assessment is accurate? Here’s how to appeal.

If you wish to appeal your property tax assessment, you have until June 8 to file your appeal with the Assessor’s Office. You can submit your appeal online, by mail, or in person (if you schedule an appointment by calling 303-864-7710). When filing a protest, including any relevant proof or evidence to support your case is essential. The Assessor’s Office encourages property owners to provide helpful information to ensure an accurate assessment.

After filing an appeal, you have until June 30 to explain why the assessed value is inaccurate. The state is required to respond via mail by August 15. The Board of Assessment Appeals (BAA) will schedule a video conference hearing. Note that there are some fees associated with the protest. For example, if you’re represented by your RE/MAX Alliance agent or a lawyer, you’ll need to pay $101.25 per property.

There are various local and state resources available to assist you.

You may be eligible for the Property Tax Deferral Program, which allows you to defer property tax payments. The deferral amount ranges from $100 to $10,000, and it will accumulate interest as a lien against the property until it is sold. This means the property owner can use the money from the sale to cover the increased taxes that were previously deferred. To qualify for this program, you must meet one of the following requirements:

• Be 65 years of age or older.

• Were called into military service on January 1, 2023.

• Experienced a 4%+ tax increase. 

You must own and live in the property (unless living elsewhere due to “ill health”) and cannot earn income off the property. Previous property taxes must be paid in full. Since the window to apply is from January 1 to April 1, you can apply next year (and reapply each year to continue deferring).

Seniors, disabled veterans, or surviving spouses may be eligible for property tax exemptions. 

Researching the specific eligibility requirements and applying if you think you qualify is important. Your RE/MAX Alliance agent is your ally. They’ll help you stay informed, gather evidence, and answer all additional questions about your property tax assessment.

Sources: Denver Metro Association of Realtors®, Denverite.com