Colorado's 2017 statewide reassessment has resulted in dramatic property value increases across-the-board. The median projected rise for Metro Denver area commercial property is 20%, for residential 25.9%, and for multi-family 45%. The deadline to appeal the new assessments is June 1.
Denver's red hot real estate market is a factor of the city's sought-after location. In fact, Denver was named the best place to live in the United States by US News and World Report. Researchers analyzed 100 cities based on the quality of life, job market, and people’s desire to live there. Denver had an overall score of 7.8 out of 10.
Denver's growth rate has consistently outpaced the national rate every decade since the 1930s. The region has grown considerably in the past decade and by 2020, the population of the Metro Denver area is expected to hit 3.3 million.
The desirability of living and working in the greater Denver area has led to record pricing for both commercial and residential properties. With the reassessment, the largest commercial property increase for the region is in Boulder County, where valuations jumped 23%. Arapahoe County followed with an increase of 22%.
Under Colorado's Gallagher Amendment, the state must adjust the rate at which properties are taxed to maintain a ratio between the property taxes paid by commercial building owners and homeowners.
The amendment requires that residential properties make up 45% of the total assessed value, with non-residential making up the remaining 55%. When the valuation of residential properties rises rapidly, the rate at which they are taxed must be reduced to maintain the ratio.
This year, the Colorado Division of Property Taxation reduced the residential assessment ratio to 7.2% for tax years 2017 and 2018. This is down from 7.96%, where it has been since 2003.
If you believe your assessed value is overstated, incorrect, or not comparable with other similar properties, you should file an appeal.
The first level of appeal is to the county assessor, who will review the protest and issue a Notice of Determination. If not satisfied with the assessor’s decision as outlined in the Notice of Determination, you may then file a petition with the County Board of Equalization (CBOE). The CBOE will hold a hearing and issue its own decision. If the CBOE’s decision is unacceptable, you may then proceed to the third level of appeal. There are three different forums at the third level of appeal. You may appeal to the Colorado Board of Assessment Appeals, file a civil complaint in district court, or submit the dispute to binding arbitration.