Have you ever wondered how your property taxes are made up? Property taxes are calculated by multiplying the actual value of the property by the assessment rate to get the assessed value. You then multiply the assessed value by the mill levy.
(Actual Value) X (Assessment Rate) = (Assessed Value) X (Mill Levy) = Tax dollars
Lets break that down to help you understand each part that plays a role in calculating property taxes. Mill levies are the rates of taxation set by each taxing authority, and each taxing authority has a district boundary. The Tax Authority in your district will calculate the mill levy based on where your property is located. Counties, towns, schools and any other special districts will all have their own mill levy, which is shown on your annual tax bill from the County Treasurer.
The assessment rate is the percentage paid by the taxpayer based on their property classification. Assessed values of all properties, with the exception of residential, are calculated by multiplying the actual value by 29%. For residential properties, the current assessment rate in Colorado is 7.20%. The percentage for residential assessment is subject to change every odd-numbered year by the Colorado Legislature. By Constitutional mandate, this change in percentage helps maintain the balance of tax burdens between residential and other taxpayers.
Moving on to the actual value. This is often referred to as appraised value, and will be determined by an appraisal. According to Colorado statues, it is mandatory for the assessor to equitably value all property in their county. Every odd number year real property will be reappraised by the Assessor's Office and the value determined will also be used for the intervening year. The property is valued as it was on January 1 of the current year. The data collected from the appraisal used to establish the real property value, in a reappraisal year, is from the previous 18 month period ending June 30. So for example, for the upcoming year of 2021, the data collected will be from January 2019 through June 2020.
As a property owner, you should receive Notice of Valuation on or before May 1 of each year. The notice will contain your account number, parcel number, legal description, actual value for the current year, as well as prior, and information on how to protest the current year's value. If you believe your property was valued incorrectly and wish to appeal it, you must file your appeal by the deadlines stated in your Notice of Valuation. Below you will find an example of the form if you wish to protest your property's valuation.
Now that we've covered the basics on what makes up your property taxes, it's time to talk about when they're due and how you can pay them. Tax notices are mailed once a year, usually in January, and payments can be made in half payments or one full payment. For those paying half payments, the first half will be due February 28 and second due June 15, or if you chose one full payment that will be due April 30. Make sure to be aware of if you're receiving your tax notices since the taxpayer is responsible for paying, whether the bill is received or not. A 1% interest is charged per month after the due date, and any payment received after September 1 must be paid in cash or cashier's check. If you wish to pay your taxes online visit the Grand County Treasurer's website.
The Colorado Real Property Transfer Declaration form, also known as TD-1000, provides the county assessor with important information to help guarantee property assessments for tax purposes are reasonable and consistent. All conveyance documents, such as deeds, will need a TD-1000 form if the documents are subject to the documentary fee submitted to the county recorder for recording. Like I mentioned above, county assessors must appraise all real estate throughout Colorado every two years. The sales prices of properties are taken from the deeds and used in the appraisal process. This form is used to alert an assessor's office when the sales price might not correctly reflect the property's value. For example, a situation might occur from a sale that provides a selling price that doesn't truly represent the property's value, like selling a home at a discounted price to a family member. In which case an appraiser will have to adjust a sales price or possibly disqualify them. It is essential this form be completed and signed by either the grantor (seller) or grantee (buyer). It's also important for you to know that this form is not recorded and kept confidential at the county assessor's office. Below you will see a copy of the Colorado Real Property Transfer Declaration form.
For more information on property taxes, forms or paying online please visit the links below.
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