Will Property Taxes in Colorado Increase?
As a reputable and experienced real estate agency in Colorado, we understand the concerns of homeowners and potential buyers regarding property taxes. One question that we’ve been receiving a lot lately is, “will property taxes in Colorado increase?” In this article, we will explore the factors that can influence property tax rates in Colorado and provide you with valuable insights that will help you make informed decisions regarding your real estate investments.
Factors that Affect Property Taxes in Colorado
Property taxes are calculated based on the assessed value of the property and the mill levy rate of the county where the property is located. The mill levy is the amount of tax per $1,000 of the assessed value of the property. The mill levy rate is determined by local government officials and can vary from county to county.
The assessed value of a property is determined by a county assessor who reviews the property and determines its market value. Factors that can influence the market value of a property include its location, size, age, condition, and amenities.
Another factor that can affect property taxes in Colorado is Amendment 23. This amendment, which was passed in 2000, requires the state to increase funding for K-12 education by inflation plus 1% every year. This can result in higher property taxes as local governments are required to contribute more to education funding.
Furthermore, the Taxpayer’s Bill of Rights (TABOR) limits the amount of revenue that the state and local governments can collect without voter approval. This can limit the ability of local governments to increase property tax rates.
Property Tax Rates in Colorado
Property tax rates in Colorado vary by county and are expressed as a percentage of the assessed value of the property. According to data from the Colorado Division of Property Taxation, the average residential property tax rate in Colorado in 2021 was 0.506%.
However, it’s important to note that property tax rates can vary significantly by county. For example, in 2021, the residential property tax rate in Pitkin County was 0.147%, while the rate in Huerfano County was 1.392%. Therefore, it’s essential to research the property tax rates in the county where you plan to purchase a property.
Factors that Can Influence Property Tax Increases in Colorado
While it’s impossible to predict with certainty whether property taxes in Colorado will increase, some factors that can influence property tax increases in Colorado include:
- Increases in property values
- Increases in the mill levy rate
- Increases in the funding requirements for schools and local governments
- Increases in the costs of providing services, such as police and fire protection
How to Manage Property Taxes in Colorado
If you’re a homeowner in Colorado, there are several ways to manage your property taxes. One way is to ensure that your property is assessed correctly. If you believe that your property is over-assessed, you can file an appeal with the county assessor’s office.
Another way to manage your property taxes is to take advantage of tax exemptions and credits. For example, if you’re a senior citizen or a disabled veteran, you may be eligible for property tax exemptions. Additionally, there are tax credits available for energy-efficient home improvements.
In conclusion, while it’s impossible to predict with certainty whether property taxes in Colorado will increase, there are several factors that can influence property tax rates. As a reputable and experienced real estate agency in Colorado, we understand the concerns of homeowners and potential buyers regarding property taxes. We hope that this article has provided you with valuable insights that will help you make informed decisions regarding your real estate investments.
Real estate pro Brian Chandler of RE/MAX Alliance Group is a top producer and sales trainer located in the Parker, Colorado, area. Whether you’re buying or selling, team up with Brian today! 720.808.1007 Read more articles like these Top Realtor Info Contact Brian Chandler