Tax Assessements - Why would I want my property value lowered?

By
Real Estate Broker/Owner with Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# IR40011786
http://actvra.in/5f2

In the year the property values are assessed, I get phone calls from clients asking  "Why would I want a lower property value?"    I just got off the phone with a current client asking this very question!   

 

The taxes are assessed on the value on your property from 18 months prior to the assessment.   This is not Tax Dollarsa current valuation of the property!   If you were to put your property on the market, this figure will not be used for setting the list price.   When a seller calls and wants to put their home on the market, a CMA (Comparable Market Analysis) is done for the last 4-6 months, to get the current value for listing purposes.

 

If you have pulled a permit with the County, the newly finished basement will be added to your assessment.   If you had an addition added on to your property, or added a covered deck, the County will find this as "added value", and your property value will increase.  There are areas of the metro Denver area requiring you pull permits for basements, etc.

 

On May 1st, the assessor will mail your notice of valuation along with the protest form.  If you receive your County Property Tax Assessment, and feel it is too high, give me a call, and I will let you know if there should be an adjustment.      The real property protest period is from May 2 - June 1.      You can do by email, in person, or on-line.     Using comparable property values will help adjust the value of this assessment.   If the home owner is not satisfied with the results, they may file an appeal by July 15 for real property with the county board of equalization.     There is no guarantee the County will lower the assessment, but may be worth the time and effort to try!  

If your property value is lowered, your taxes should decrease as well!

 

Here is an explanation of this taxation process -

These notices disclose the total ad valorem tax due in 2011 for the tax year 2010, as property taxes in Colorado are collected in arrears.   Ad valorem is defined as "according to the value and is a tax imposed on the basis of the monetary value of the taxed item."   Real property taxes are an example of ad valorem taxes.

The tax statements received by homeowners will list all tax entities that levy a tax on their subject property.     These tax amounts are then multiplied by the number of mills reports by each taxing entity (tax rate) by the total assessed value.     These taxes will include school districts, county government, city government, library districts, recreation districts, fire rescue districts, water and sanitation districts, drainage and flood control districts, conservation districts and storm-water districts just to name a few.

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Metro Brokers - House to Home, Inc.House to Home

GRI, ABR, CRS, CNE, e-Pro  

Broker/Owner

Joan@JoanCox.com

720-231-6373

 

Denver Real Estate

Homes for Sale in Denver

Neighborhoods in Denver

 
  A Denver Metropolitan Realtor

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Show All Comments
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Mel, I have protested for numerous clients, and myself, and saved many tax dollars!   The experience is worth it!

Jan 11, 2011 08:19 PM #4
Rainmaker
217,417
Patricia Beck
RE/MAX Properties, Inc., GRI, CDPE - Colorado Springs, CO
Colorado Springs Realty

Great post Joan!  I appealed our property taxes and will be paying lower taxes this year.  Great explanation of the difference in assessed value vs. market value.  Some folks assume the assessed value is the same thing.

Jan 11, 2011 09:17 PM #5
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Patricia --- thanks!    Glad you were able to save some hard earned dollars vs giving it back to the government!

Jan 11, 2011 09:19 PM #6
Rainmaker
284,014
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

Good information to share for your area.  Questions like this come up all the time and great that you took time to put it in language anyone can understand.

Jan 11, 2011 10:07 PM #7
Ambassador
504,344
Pat Haddad
Keller Williams Indianapolis Metro NE - Carmel, IN
Carmel IN Real Estate Expert

Joan--It is almost amusing, but then again not really, that people EVERYWHERE get confused by things involving their property taxes!  I usually find that they have talked to at least two other people before calling me to get a third explanation.  I think yours was very clear!!

Jan 11, 2011 10:32 PM #8
Rainmaker
240,205
Joyce Godwin
12810 Telge,Cypress,TX 77429 -Houston,Cypress,Spring,Tomball - Cypress, TX
RE/MAX Realty Center, Houston Area Relocation Info

Joan, Great explanation of how it works.  I have one client who calls me and protests her taxes every year.  Usually she is successful in reductions.

Jan 11, 2011 11:50 PM #9
Rainmaker
948,502
Bob & Leilani Souza
Souza Realty - Roseville, Rocklin, Lincoln, Loomis, Granite Bay, Penryn, Newcastle, Auburn, Meadow Vista (California) - Roseville, CA
Placer County, CA: Foreclosures, Auctions, Rentals

Joan, you provided quite a thorough explanation about property tax assessments...this post is a great one to keep handy for forwarding to clients! :)

Leilani

Jan 12, 2011 06:04 AM #10
Ambassador
1,490,405
Liz and Bill Spear
RE/MAX Elite 513.265.3004 www.LizTour.com - Mason, OH
RE/MAX Elite Warren County OH (Cincinnati/Dayton)

Joan, Great explanation of the process!  Our county had about a 10% drop in assessment values, but minimal change to taxes.  Apparently they change the rates to compensate!  Oh well, we still need the services the taxes pay for!

Jan 12, 2011 06:20 AM #11
Ambassador
1,282,264
Toni Weidman
Re/Max Sunset Realty - Trinity, FL
23 Years Selling Homes in New Port Richey, FL

Great information for your area, Joan. It seems that no-one is ever happy with their tax assessment :)

Jan 12, 2011 08:34 AM #12
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Melanie, this is the assessment year, and conversations have already begun, just thought I would put it on my outside blog for the clients!

Jan 12, 2011 09:44 AM #13
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Pat, I find it amusing as well, why not ask the person with more knowledge on the subject?       I am glad to help someone lower the taxes!

Jan 12, 2011 09:44 AM #14
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Joyce, that is great they call you every year!     They trust and rely on you!

Jan 12, 2011 09:45 AM #15
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Leilani, on my next newsletter, I will add a link to this blog post!   Hopefully it will help a few families!

Jan 12, 2011 09:46 AM #16
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

BLiz, that is why I said HOPEFULLY the taxes will go down!   The Mill rate could increase, and may still not lower the taxes.   We DO need the services, and most cities and counties are operating in the red!

Jan 12, 2011 09:47 AM #17
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Toni, isn't that the truth!

Jan 12, 2011 09:48 AM #18
Anonymous
Anonymous
Anonymous

I’m curious about why a CMA would be done for the last 4-6 months. What’s wrong with months 1, 2, and 3?

Jan 12, 2011 11:57 AM #19
Rainer
23,106
Tom Hoffman
Top Priority Realty, LLC - Brighton, CO
Broker/Owner

Hi Joan, Thanks for the tax reminder. There is not too much we can do about the mill levy other than voting for responsible people but to protest the assessment is a good thing. It would help a future buyer with a lower total monthly payment and make qualifying for loans easier.

Jan 13, 2011 10:07 PM #20
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Russel - I know appraisers use the last 6 months, but if a seller is just NOW comtemplating putting their home on the market, I use between the solds from the last 4-6 months.

Jan 13, 2011 10:19 PM #21
Rainmaker
188,900
Larry Atkins
State Wide Realty Co. - Farmville, VA

Joan, don't we all wish they were being lowered!!  It's great to prepare your clients in advance if they are going to appeal. So many people come unprepared without any documentation and just want their tax assessment changed....so I commend you for offering assistance. Great Post!

Jan 14, 2011 11:14 AM #22
Rainmaker
1,452,090
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Thanks Larry, I think this is a valid way we can assist our clients - and even FUTURE clients.    We CAN save them money most of the time!

Jan 14, 2011 06:26 PM #23
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Rainmaker
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Denver Real Estate - Selling One Home at a Time
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