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Q1 2023 Question: How Can I (and Should I) Appeal My Property Tax Assessment?

Q: News outlets are reporting property taxes are about to increase dramatically – how do I fight the increase?

A: Residential property taxes in Colorado are among the lowest in the US – at about 0.70% of fair market value – but they are about to skyrocket.

First, let’s explain property taxes. In the State of Colorado, property taxes are primarily based on two things: your property’s mill levy and its value.

A property’s mill levy is a total of all of its taxing districts; things like: city, county, schools, firefighters, and libraries. Those combined make up about 90% of your mill levy UNLESS your home is new(er) and belongs to a special metro district. If that’s the case, then your mill levy is probably significantly higher.

Your property’s value for tax purposes is determined by your county’s public assessor. Colorado State law requires that all property values be re-assessed in May of odd years. Since we are in an odd year (2023), you will be receiving an updated assessed value by mail next month (May). The new assessed value will come with supporting comparable sales within your community. Since Denver metro property values have increased 28% over the past 2 years, guess how much you can expect your property taxes to increase? Yep, 28%.

A family whose home was worth $550K in 2021 and is now worth $700K, will pay $1K more per year in property taxes. And for homes in special metro districts, that number could easily increase $2K-$2.5K.

How can you fight back? By appealing your property’s assessed value.

But, you must hurry – state law requires that appeals be submitted by June 1st, so you won’t have much time. Does it make sense to appeal? It depends… If your property is overvalued by $100K - then yes - as it will save you around $1,400 over the next 2 years. If it’s overvalued by $10K, then maybe not, as it will only save you around $140 over the same period. Additionally, appeals are only successful about 50% of the time, and many times not for the amount you argued for.

As a service to our clients and friends, we are supportive in your property tax appeal filing. We are happy to evaluate your property by pulling comps and providing additional support, as needed.

Contact us anytime you have a real estate-related decision or question – quitclaim deed transfers, renovation ideas, investment property questions, etc.

We’re more than just Realtors, we’re real estate advisors.


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