Ever wonder how your property taxes are figured or who figures them? Or what you can do if you feel your property taxes are too high?
Read on and you’ll see how property taxes are figured in Colorado Springs. The process is similar in other places, but the rates may be higher. Colorado’s property taxes are some of the lowest in the country. So here goes…
The County Assessors office determines value based on comparable homes sold in your neighborhood within the last 24 months. Those homes sold closer to the end of the 24 month period are weighted more heavily. So here’s a quick example to illustrate the calculations.
1. Let’s say your home is determined to have a Market Value of $348,840.
2. In Colorado Springs, the Current Residential Assessment Rate is 7.96%. So, your Assessed Value would be $27,770 ($348840 x .0796, then round to nearest $10).
3. The final tax amount is based on what is called a Mill Rate. The Mill Rate varies depending on what part of town you live in. For purposes of this example, let’s say the Mill Rate for your subdivision is 57.749. Each mill is one-thousandth of a currency unit. So, 57.749 Mill = .057749. In this example, your property tax for the year would be $27,770 x .057749 = $1,603. On a per month basis, this would account for about $133 of your monthly mortgage payment. Not too bad compared to other areas of the country.
The highest Mill Rate I’ve seen in Colorado Springs is around 95 Mill (.095). So property taxes can vary quite a bit just depending on what part of town you live in. If you’d like to check your mill rate go HERE, then type in your property address. The sight looks like this:
It’s easiest if you type in your house number in the From# AND To# fields. And then, of course, your street name. Then hit GO! The MIL levy (rate) will show above the shaded area as in the example below:
What if you believe the County Assessors office overestimated your property’s Market Value? There is an appeals process! Go to the El Paso County Assessors Page HERE. You can only appeal their assessment of your Market Value, you cannot appeal because you think your rates are too high. Here’s an excerpt from the Assessor’s website:
“An Assessment Appeal isn’t a complaint about higher taxes. It is an attempt to prove that the estimated market value placed on your property is either inaccurate or unfair. You will not win an appeal because you think your taxes are too high!”
So why does the county impose property taxes in the first place…here’s just some of the services that are normally paid for with your property taxes.
- local education
- police/fire protection
- local governments
- some free medical services
- most local infrastructure
Everyone who owns property in Colorado Springs / El Paso County will receive a Notice of Valuation (NOV) for each property they own in the county after the first of May. It usually states “this is not a bill.” Look it over and make sure you agree with the valuation of your property.
About the author: The above article “Property Taxes – Who, What, Where, and Why” was provided by Kevin Guerrero of Keller Williams Clients’ Choice Realty. To find out more about Kevin and Keller Williams check out the ABOUT US page.
To get a complimentary home valuation click HERE.