How property taxes are determined

Your property taxes are determined by multiplying the tax rate (set by local government entities) by the assessed or taxable value of your property.

Assessed values are calculated by multiplying the actual value by 7.96% for residential property and by 29% for other property. The residential assessment percentage is subject to change by the Colorado Legislature, as prescribed by the Gallagher amendment, each odd numbered year. By Constitutional mandate, the change in percentage maintains the present balance of the tax burden between residential and all other taxpayers. The current percentage is shown on your Notice of Valuation and is 7.96% for appraisal years 2007–2008.

Each year county commissioners, city councils, school boards, and special districts hold budget hearings to determine how many dollars will be needed for the following year’s operations. These hearings are usually held in September or October but may be held earlier. Check your local newspaper for the hearing dates. Attend budget hearings to become informed about the quality and cost of services in your area. Find out which items can be cut or trimmed and which ones cannot because federal and state governments require certain programs, such as social services.

The Tax Rate and Mill Levy are two different methods of expressing the same information. A Tax Rate is expressed in percentage, Mill Levy is expressed in mills (1 mill = $1 of property tax for every $1,000 of assessed value). Each taxing entity determines what revenues will be required to operate the entity during the coming fiscal year. The required revenues are then divided by the total assessed value to determine the tax rate/mill levy per entity.

Example:

The total assessed value for the county as determined by the assessor is $100,000,000.

The county commissioners determine the budgeted property tax revenues to be $1,398,000.

$1,398,000 (tax revenue) divided by $100,000,000 (assessed value) =

1.3980% (Tax Rate) or 13.98 Mills (Mill Levy)

Therefore the county tax rate is $13.98 in revenue for each $1,000 of assessed value.

Generally properties are affected by several taxing entities. To determine the Total Tax Rate, sum the tax rates for each entity that impacts the property.

Taxes are calculated using this formula:

Actual Value x Assessment Rate = Assessed Value

Assessed Value x Mill Levy = Taxes Due

Residential home example:

Actual Value	$ 200,000
Assessment Rate	x 7.96%
Assessed Value	= $15,920
Example Mill Levy	x .074000
Taxes Due	= $1,178

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Exemptions for the elderly and disabled veterans