+ Why does AVPros charge an upfront appraisal fee?

AVPROS requires an upfront payment of a $250.00 fee (perhaps $350.00, or more, for commercial or multi-use properties) to be paid at the time of signing the Engagement Agreement. As licensed appraisers, to be in compliance with the Uniform Standards of Professional Practice, an appraisal must be objective, for a fixed fee, and not based on a predetermined outcome. With compliant appraisal in hand, AVPROS then goes to work as your agent to advocate on your behalf for a reduced assessment valuation, if warranted, based on the appraisal results.

+ Will a lower Assessment Value affect my sales price, if I decide to sell?

No. I am not aware of buyers who look at the tax bill to influence their purchase price. On the other hand, it is just good property management to keep your property taxes in line. Why pay more than your share of taxes?

+ If I missed the end of May protest deadline can I still appeal?

There are alternative appeals that can be filed, including an abatement/refund petition if you didn’t start the process by filing a protest during the May 1 to June 8 protest period for 2023. As a matter of fact, appeals can still be filed for the 2021 and 2022 tax years, if not prior appealed, by filing before January 1, 2023. Contact AVPros to discuss your situation.

+ What is the difference between a “Protest” and an “Appeal”?

The technical difference, according to the Colorado Division of Taxation, is that a protest is the initial filing with the assessor’s office within the prescribed period after May 1 when the new assessment values are mailed to property owners. An appeal describes any other filing of a petition challenging a property’s assessment value, including the CBOE (2nd Round), the BAA (third round), or anything related to the filing of an abatement or refund petition. That said, many in the industry use the terms interchangeably.

+ How often is my property valued?

Under Colorado law, all real property (land, buildings, improvements, etc.) must be re-appraised every two years. This occurs in each odd-numbered year (2019, 2021, 2023, etc.). The county assessor reviews the prices of properties which sold during the 24-month period ending on June 30 of the year prior to the reappraisal cycle. For example, new 2023 values will be based on properties which sold between July 1, 2020 and June 30, 2022. New values are set each year for personal property owned by businesses based on the information annually submitted by the taxpayers on personal property declarations.

+ What is the Difference between “Actual” Value and “Assessed” Value?

The assessor estimates the "actual (market) value for all real and personal property in the county. Actual value is then reduced by a percentage to derive the "assessed" value. Recently, the assessment rate for determing assessd value has been changed, and is now determined by property type and tax year. If, however, that assessment rate is 7.15%, a residential proerty with an actual value of $100,000 would have an assessed value of $7,150 ($100,000 x 0.0715). Your property's actual value multiplied by its assessment percentage yields its assessed value. The assessed value multiplied times the mill levy rate, produces your annual property tax bill.

+ If my property value increased, will my property taxes go up?

For 2023 taxes payable in 2024, the answer is probably yes, if value increased over the baseline increase for the county. However, the actual tax increase will not be known until the end of 2023 when each county adopts a new mill levy which determines the 2023 tax for your property. The estimated statewide Colorado increase in all 2023 actual values is not known at this time. Obviously, the statewide average of actual value increases for some counties will far exceed others. It is important to note that the assessor does not set property taxes or mill rates. Property taxes are determined by multiplying your home's assessed value by the mill levy or mill rate. The mill rate is determined by the sum of all pertinent tax levies of metropolitan districts, schools, parks, etc., divided by all applicable property's combined assessed value. The tax bill is for your share of the pertinent tax levies.

+ Why did my property value go up when I haven't made any new improvements to my home?

In order to determine new actual values for residential property (including single-family, multi-family and apartment properties) all Colorado county assessors are required by law to use only the market approach to value. For 2023 property value estimates, the sales prices of homes similar to yours which sold between July 1, 2020, and June 30, 2022, the so-called “base sale period”, must be used. If the sales prices of those homes went up, then the assessed value of your home likely showed an increase.

+ How are my 2023 property taxes calculated?

The county assessor does not set property taxes or collect payments. However, we can provide the following general information about how your 2023 property tax bill (2023 taxes payable in 2024) will be calculated, and how to estimate future year taxes.

To calculate a residential property’s taxes, its actual value is adjusted by the appropriate assessment rate to determine its assessed value ( substantial changes were made for 2023-2025).Improved residential properties (including single-family properties) for 2023 are multiplied by 6.765% (along with the first $15,000 in actual value being exempted), the 2024 tax year rate is unknown at this time. It will go back to 7.15% for the tax year 2025. Multi-Family Residential real property (including apartments) for 2023 will be 6.765% (along with the first $15,000 in actual value being exempted). It will go to 6.8% for tax year 2024, and back to 7.15% for tax year 2025. Vacant land for 2023 is multipllied by 27.9%. It will go back to 29% for 2024 & 2025. Commercial properties for 2023 are multiplied by 27.9% (along with the first $30,000 in actual value being exempted) and back to 29% for the years 2024 & 2025. Industrial properties for tax year 2023 will be 27.9%, returning to 29% for tax years 2024 & 2025. Agricultural properties for tax year 2023 and 2024 are26.4%, returning to 29% in 2025. Other Agricultural property (Agri-Business)for tax year 2023 is 27.9%, returning to 29% for tax years 2024 & 2025.

The Actual Value (less any exempted amount) is multiplied by the applicable tax rate (see above). In Colorado, tax rates are expressed as a decimal fraction of a dollar for every one dollar of Assessed Value. Known as millage or mills, one mill is 1/1,000th of a dollar or $0.001 (1/10th of a penny). Millage greater than one mill is usually written as a whole number followed by three digits to the right of a decimal point.

In 2022, the City and County of Denver's combined general millage or Mill Rate including Denver Public Schools and Urban Drainage District was 74.195 mills or a tax rate of $0.074195 for every $1 of assessed value. Further, if a typical single-family Denver home in 2023 was valued at $575,000, the property tax calculation would be as follows:

Actual Value (minus exempted value ,if any) x Assessment Rate x Mill Rate (Tax Rate) = Taxes

Assuming the mill levy for tax year 2023 remibned the same as 2022, if a Residence’s Actual Value was $575,000 - $15,000 x 0.06765 x 0.074195 = $2,810.80 (2023 Tax)

As demonstrated above, the tax calculation has three parts. The Actual Value comes from the assessor’s property value estimate as described above. The Assessment Rate is set bi-annually by the State Legislature the current 6.765% (for Residential). Tax Rates (the mill levies) are set in December each year by taxing authorities like the City and County of Denver, Denver Public Schools and others listed on the tax bill. Taxes are then billed and collected by the county treasurer. These rates are expected to be re-adjusted in December 2023 to keep them in line with the Gallagher Amendment.

+ How is my property's assessment value determined? Changes for 2022-2025?

Colorado Statewide Property Tax Assessment Rates for Tax Years 2022 through 2025**

As a result of the passage of SB21-293, and due to the failure of Proposition 120, the following changes to the statewide property tax assessment rates will take effect for tax year 2022. The passage of SB22-238 changed the assessment rates for tax years 2023, 2024 and 2025.

• Agricultural property will be reducéd from 29% to 26.4% for tax years 2022 through 2024. It will go back to 29% starting in tax year 2025. • Other Agricultural" property (Agri-Business) will remain at 29% for tax year 2022. It will go to 27.9% for tax year 2023. It will go back to 29% for tax years 2024 & 2025. • Commercial property will remain at 29% for tax year 2022. It will go to 27.9% for tax year 2023 along with the first $30,000 in actual value being exempted. It will go back to 29% for tax years 2024 & 2025. • Industrial property will remain at 29% for tax year 2022. It will go to 27.9% for tax year 2023. It will go back to 29% for tax years 2024 & 2025. • Vacant land will remain at 29% for tax year 2022. It will go to 27.9% for tax year 2023. It will go back to 29% for tax years 2024 & 2025. • Multi-family Residential real property will be reduced from 7.15% to 6.8% for tax year 2022. It will go to 6.765% for tax year 2023 along with the first $15,000 in actual value being exempted. It will go to 6.8% for tax year 2024 and back to 7.15% fer tax year 2025. • All Other Residential real property (including single family homes) will be reduced from 7.15% to 6.95% for tax year 2022. It will go to 6.765% for tax year 2023 along with the first $15,000 in actual value being exempted. The 2024 tax year rate is UNKNOWN at this time as it will be calculated by the Colorado Division of Property Taxation. It will go back to 7.15% for tax year 2025. • Business Personal property will remain at 29% for 2022. It will go to 27.9% for tax year 2023. It will go back to 29% for tax years 2024 & 2025. • Oil and Gas property will remain at 87.5% for tax years 2022 through 2025. 09/21/2022

+ How is my residential property's actual value determined?

For residential properties, appraisers who work for the assessor’s office in the county where the property is located study the sales of homes similar to yours which sold within a specific 24-month period (some counties adhere to an 18-month period ending June 30 prior to January 1 of the tax year) and apply the sales comparison approach to value the property as of June 30, 2022.

+ How is my commercial property’s 2023 actual value determined?

To value commercial and industrial properties, the cost, market and income approaches must be used where applicable to value the property as of June 30,2022. For business personal property, values are based on the asset value information submitted directly by business owners to the county.

+ How is my vacant land’s 2023 actual value determined?

For unimproved land, usually the sales comparison approach is used most often to determine value as of June 30, 2022. However, there are a number of other methods suitable for valuing land such as: Extraction, Allocation, Anticipated Use (or the Developmental Cost Approach, and Capitalized Ground Rent. For developer’s holding an inventory of unsold lots, the “Developer’s Discount” or Present Worth of Vacant Land Method, as the Assessor calls it, can result in up to a 65% tax savings. Contact AVPros for additional information if your property includes an inventory of unsold residential lots - you may be pleasantly surprised.

+ How is my business personal property’s assessment value determined?

For business personal property, values are generally based on the asset value information submitted directly by business owners to the county.

+ Why do we have property assessments?

The Constitution and state laws of Colorado have established real and business personal property assessment procedures and requirements. The values estimated by the county assessor’s office for real and personal property are used in the calculation of property tax bills. The revenue raised through these property taxes is used to help pay for public services including: police, schools, libraries, and fire protection.

+ Are there exemptions for certain types of property?

The Colorado legislature has passed laws which exempt certain types of property from assessment. Certain educational, religious, and non-profit uses are exempt from property taxes. Personal property also has certain exemptions such as computer software application programs and assets which are strictly used for 30-day or less rentals. The Assessor's Office can provide current information about existing and any new exemptions.

+ Is a non-profit organization exempt from property taxes?

Under Colorado law, organizations which are charitable, educational, or religious in nature can be fully or partially exempt from property taxes. Simply having a non-profit status under federal IRS rules does not automatically carry an exemption from local property taxes. To apply for an exemption, call the State Division of Property Taxation at 303-864-7780 and request an exemption form at Web page: dola.colorado.gov/dpt.

+ How is property classified?

Property is classified by the assessor according to its actual use on January 1. The property classification determines the rate at which the property will be assessed for that tax period

+ How does the county treasurer bill for property taxes?

Property tax bills, reflecting the taxes due for the preceding year, are mailed as soon after January 1 as possible. Tax amounts greater than $25 may be paid in one payment by April 30 or in two EQUAL payments. The first half payment is due by the last day of February. The second half payment is due by June 15. If the tax amount is $25 or less, payment in full is due on April 30.