Ah, the joys of being a homeowner in Colorado’s we-inspiring mountain towns. The panoramic views, crisp mountain air, and recreational opportunities make it a dream location. However, alongside these perks comes the not-so-pleasant reality of skyrocketing property taxes. But fear not! As a homeowner, you hold the power to challenge inaccuracies and over-assessments through the process of property tax appeals. Let’s embark on a journey through the ins and outs of appealing property taxes in Colorado, but more specifically Summit County.
Cracking the Property Tax Code in Colorado:
To begin our expedition, let’s unravel the mystery behind property tax calculations in the Centennial State. To determine your property tax, you’ll need to multiply the assessed value by the residential assessment rate and the applicable mill levies (tax rates). As of 2022, the residential assessment rate for Colorado stands at 6.95%. To discover the specific mill levies for your property, pay a visit to the County Assessor’s or Treasurer’s website. For the Summit County Assessor’s website visit: http://www.summitcountyco.gov/1277/Property-Taxes .
Now, lets look at an example. Say your property has an assessed value of $1M and you find yourself facing a 50 Mill Levy (0.05). Crunching the numbers yields a results of $3,475 in property taxes. ($1,000,000 x 6.95% x 0.05 = $3,475
Demystifying the Assessment Process:
Next, hold on tight as we navigate through property value assessments. The years 2021 and 2022 witnessed a meteoric rise in property values, with some areas experiencing jaw-dropping increases of up to 30%-50%. To add to the excitement, the assessor determines property valuations for taxation purposes as of June 30, 2022. In Summit County, comparable sales (comps) from the previous five years leading up to June 30,2022 are considered. However, keep in mind that other municipalities may focus on the 18-month period preceding the same date. To unlock the secrets of how your property is valued, you can find comps using the Notice of Evaluation Archive on the Summit County website. Visit http://apps.summitcountyco.gov/NOVArchiveViewer/
Your Property Tax Appeal:
As you embark to challenge your property tax assessment, it’s vital to arm yourself with compelling evidence. Remember, knowledge it power! Here are a few essential pieces of information to include in your arsenal:
- Recent Comparable Sales: Gather data on recently sold properties similar to yours in size, bedrooms, bathrooms, and other key factors. This evidence will demonstrate the fair market value of your property and bolster your case. According to the assessors office, some of the things they are putting the most weight on are sale date, location, size (beds, baths, square footage), age and view.
- Property Characteristics: Highlight any discrepancies between the assessed characteristics of your property and its actual condition. Is your kitchen a culinary masterpiece after recent updates? Are your bathrooms worthy of royalty? Draw attention to these noteworthy features that might not be evident from records alone, such as breathtaking views, optimal direction, and desirable neighborhood locations.
- Market Conditions: Provide information on local market trends and conditions that could have influenced property values since the assessment date. Economic shifts, zoning changes, or development projects are all factors that can impact your property’s value.
To start your property tax appeal in Summit County, head to this website by June 8th – https://www.summitcountyco.gov/382/Appeals. You can also email the assessors office at Assessor@Summitcountyco.gov. The assessor prefers to have you reference any comps with their schedule numbers.
Harnessing the Power of Your Realtor:
In this daunting battle for fair taxation, your realtor can be a formidable ally. Tap into their expertise and market knowledge to fortify your case. Realtors possess access to comprehensive sales data, an intimate understanding of market trends, and a wealth of knowledge regarding property values in your area. Join forces with your realtor to gather accurate and relevant comps, as they will play a pivotal role in substantiating your appeal. Remember, teamwork makes the dream work!
The Sweet Taste of Victory… or Not:
It’s important to set realistic expectations. Not every appeal will be victorious! Nevertheless, it’s always worth striving to reduce your property value and, consequently, your tax burden. Let’s say you succeed in lowering your property value from $1,000,000 to $900,000. This triumph would result in a yearly tax reduction from $3,475 to $3,127.50. Though it may not be an earth-shattering victory, every penny is great!