You've probably received your '2011 Notice of Valuation' in the mail if you own real estate in Denver. The county Assessor is required by law to establish values for all real property by considering market information from the 24-month base period from July 1, 2008 through June 30, 2010. The valuation date, or the date on which the Assessor must estimate the value of real property, is June 30, 2010, reflecting the physical condition of the property as it existed on January 1, 2011.
Under Colorado law, all assessors must reappraise real property every two years; this occurs in every odd-numbered year (2007, 2009,2011, etc). If home sales have been very active, and home prices have been increasing, then the property value and assessment for many types and styles of homes typically will increase during these reappraisals. However, if your property valueincreases, that does not automatically mean that your property tax will increase by the same percentage.
How Your Denver Property Tax is Calculated
Your home's assessed value is multiplied by the mill levy to determine your property tax bill. The mill levy is set in December by the various taxing jurisdictions, such as the Denver school board, city council, and any special districts in which your home is located (water districts, improvement districts, etc). In December, each taxing authority sets their new mill levy, then all these separate levies are added together into one total mill levy, which appears on your annual property tax bill.
The current mill levy in Denver is 65.139. Using this levy, we can give you an EXAMPLE of how your property tax bill can be ESTIMATED:
For residential properties, your actual value (shown on your Notice of Valuation) is multiplied by the residential assessment rate in order to arrive at your assessed value (the residential assessment rate is set by the state, and the current rate is 7.96%, the assessment rate for all other properties is 29%). Your assessed value is then multiplied by the mill levy to arrive at your property tax bill.
Thus, if the actual value of a home is $230,000, this figure would be multiplied by the assessment rate of 7.96% for an assessed value of $18,310. This assessed value would then be multiplied by the mill levy of 65.139 (.065139) for a property tax bill of $1,192.70.
Filing a Property Valuation Protest
If you believe that the value shown on the notice of value does not represent the market value of your property as of June 30, 2010, and wish to appeal, the deadline for filing a protest of that value will be June 1.
Explaining what you believe the market value of your property was on June 30, 2010, along with as much documentation as possible to support your appeal, can be the basis for a successful protest. It would be very helpful if you could submit information about the sales prices of residential properties similar to yours which sold during the 24-month time period shown above. Sales from outside the July 2008- June 2010 period cannot be considered.
Other information you can include with your protest would be explanations of any property condition problems or other factors which you think affect the value of your property.
The real property protest period is open from May 1 through June 1. Protests may be filed online through the website, via email to onlineprotest@denvergov.org, fax to (720) 913- 4101, or mailed or hand delivered to Real Property Protest, 201 W. Colfax Ave., Dept. 406, Denver, CO80202.
Get more information about your Denver property taxes and the valuation process.
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