What is Happening to My Property Taxes??!
- Rachel Goodman
- May 9, 2023
- 3 min read
If you are like most homeowners across Colorado, you recently received a notice in the mail titled "2023 Real Property Notice of Valuation".
At first glance, it may feel pretty good to see that your home value has jumped in value in that your equity has likely now increased. However, we do not need our tax assessment to tell us this as everywhere we look we know that things are more expensive and that home prices have soared in recent years.
What does this increase mean?
This process is called a reappraisal by which the tax assessor determines the actual value of residential property every two years in odd numbered years.
This new valuation is based on how your property was valued as of January 1, 2023.
And after two years of extraordinary market increases, especially in markets like Colorado where we saw double digit growth year over year, it is inevitably going to reflect an increase.
For instance, my personal home increased by 66% in assessed value but not necessarily market value. These are big shifts.
Here is the formula=
Actual Home Value x Assessment Rate = Assessed Home Value x Local Tax Rate = $$ Annual Taxes
Ex: $700,000 x 6.77% = $47,390 x 9.6446% (Castle Pines) = $4,571/ Year
For my family, this translates to an increased valuation of 66% = and increase in taxes of $1,861 per year!
How did they come up with this valuation?
The time period they consider is July 1, 2020- June 30, 2022 and the County Assessor looks at comparable sales during that date range. Nothing past June 30th is factored into the reappraisal.
This is very different compared to what we look at as Real Estate Professionals and also what appraisers consider in their evaluations.
When I price a home, there are many factors to consider, but most of them are going to revolve around a 6 month window and current conditions. Loan appraisers will look at data usually within one mile of a property and up to a year back. Using these timeframes more accurately reflect current and forecasted market conditions and trends.
However, by going back to June 2020, that creates a very different picture on home values.
So what can I do?
You may file an appeal with the County in which you reside. You may do this on-line, in writing by mail or in person at your local office.
You must file your appeal by June 8th, 2023. This is a hard deadline.
3 Step Process:
Step 1: login to your local assessor office information site to view
Here in Douglas County: Assessor Website - Tax Valuation
Step 2: Work with your local realtor to help find three strong comparable sales that can go all the way back to June 2020 but should try to be realistic to make a compelling case. Your goal is to present a strong argument to reduce the overall reappraisal value, but keep in mind - the examples need to be reasonable and solid comparables.
Step 3: Submit these to your local office prior to June 8th, 2023.
But be aware that three things may occur:
1) No change
2) Your assessed value may go down and your taxes reduced
OR...
2) Upon closer examination, your assessed value may actually increase
**Attention seniors! Seniors over age 65 years who have lived in their home for over 10 years, and
disabled Veterans, may qualify for an exemption.
If you feel strongly that your new reappraised value is too high and would like to discuss pulling comparable home sale data to make your appeal, feel free to contact me and I will do what I can to help!
CALL or TEXT ME @ 808-855-8780
Douglas County Assessors Office Phone: 303-660-7450
Assessors Office Location:
301 Wilcox Street Castle Rock, CO 80104 Google Map
Additional resources from Douglas County:
Comments