How Assessed Values Are Determined
Assessed property values are calculated by multiplying the actual value by 7.2% (signed into law June 5, 2017, changing from 7.96%) for residential property and by 29% for non-residential property. Each odd numbered year the residential assessment percentage is subject to change by the Colorado Legislature, as prescribed by the Gallagher amendment. The change in percentage maintains the present balance of the tax burden between residential and all other taxpayers.
Local Government Budget Process
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. (See Budget & Finance for more information.)
Calculating the Assessment Rate/Mill Levy
The Tax Rate and Mill Levy are two different methods of expressing the same information:
- The Tax Rate is expressed as a 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.
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.
Example:
- The total assessed value for the county is determined by the assessor for $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
Calculating Property Taxes
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: | $ 350,000 | |
| Assessment rate: | x 7.2% | (multiply by 0.072) |
| Assessed value: | $ 25,200 | |
| Mill levy: | x 74.000 | (multiply by 0.074) |
| Property tax: | $ 1,865 |
Property Tax Payments & Deadlines
Property tax exemptions for seniors and disabled veterans
Senior Tax Exemption
The Colorado Constitution establishes a property tax exemption for qualifying senior citizens, and surviving spouses of senior citizens who previously qualified. Learn more about qualifications and how to apply.
Disabled Veterans Tax Exemption
In November 2006, Colorado voters passed Referendum E – Property Tax Exemption for Disabled Veterans. This amendment to the Colorado Constitution extends the existing property tax exemption for qualifying seniors to any U.S. military veteran who is 100% permanently disabled due to a service-connected disability.