Most of us understand that our individual property taxes are tied to our home valuations. The valuations are calculated by the Appraisal Division at the County Assessor’s Office and are broadly based on the average property values of the surrounding homes in that neighborhood. These average valuations stay fairly consistent year over year. Of course, there are exceptions, generally relating to errors such as the County Assessor’s Office not knowing about a newly finished basement or identifying a property as five bedrooms when it only has four.
But what you may not be aware of is how the County Assessor’s Office Valuation Calendar works. First let’s take a minute to understand your current property tax bill. You recently received your 2022 Tax bill which will be due in April 2023. The 2022 taxes are calculated “in the rears” meaning, you have already enjoyed and lived in the property during 2022 and now in 2023 you will be taxed for your 2022 residency. But what most of us haven’t really got a handle on, is how the Property Valuation Calendar is established and what we will be seeing from the County Assessors beginning May 2023.
Per Colorado Law, (which by the way is not a new law) the Appraisal Division completes the home valuations based on a two-year “look back period”. Once completed the County Assessors Office mails the new valuation notice to every property owner. Per law there must be a 12-month rebuttal period prior to the taxes being due. In short this means that your tax bill that received in January 2023 is a valuation of your home based on three years ago. Yep, you heard that correctly, valuations for this year’s tax payments are from the two-year “look back period” of 2018-2019.
Colorado homeowners have watched their property values soar approximately 40% during 2020 and 2021. Looking at the Property Valuation Calendar, 2020 and 2021 will become the new two-year “look back period”. Therefore, it is expected that we will see a 40% increase in our property taxes which will be due in April 2024 based on residency in 2023. The revised valuations are expected to be arriving in the mail around May of 2023. Property owners who have a mortgage on their property will see an adjustment on their monthly mortgage payment. Property owned “free and clear” will have an opportunity to divide the 2024 Tax Due amount into two payments (February and June). I hope this gives you a bit of a “heads up” and a better understanding of Colorado’s Property Tax Calendar.
Debbie Jacobs is a Realtor with Coldwell Banker – The Marcus Team. www.DebbieSellingDenver.Com O: 720-330-4844
6501 E. Belleview Ave #500 Englewood, CO. 80111