How Property Taxes are Calculated

Your property taxes are determined by multiplying the tax rate (set by local government taxing entities) by the assessed or taxable value of your property.

On this page:

• Current Year Actual Value 
• Assessed Value
• Local Government Budget Process
• Limitations on Revenues
• Determination of Tax Rates

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Current Year Actual Values

The Current Year Actual Value of property is determined by the Assessor and a Notice of Valuation is sent to the property owner.  If the property owner disagrees with the Assessor's actual value, the owner may appeal this value (click the "Appeals Process" topic in the left sidebar for details).  The actual value after appeals have been determined is the actual value of the property used for property tax purposes. For a detailed description of how the Assessor determines Current Year Actual Values, click the "Assessment Process" topic on the left sidebar.

Assessed Values

Assessed value is calculated by multiplying the actual value by 29% for all property except residential. The residential assessment percentage is subject to change by the Colorado Legislature. Currently, this percentage is 7.96%. By constitutional mandate, the change in percentage maintains the present balance of the tax burden between residential and all other taxpayers.

Example of an Assessed Value Calculation:

The actual value of Mr. Smith's home is $250,000. The current residential assessment percentage is 7.96%.

Actual Value	X	Assessment Percentage	=	Assessed Value
$250,000	X	7.96%	=	$19,900

 


 

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Local Government Budget Process:

Certification of Values

On August 25 of each year, the Assessor sends a Certification of Assessed Values letter to each entity that imposes property taxes stating to total assessed value of all property within the taxing entity's boundaries.


Budget Hearings

Taxing entities throughout the County i.e. county commissioners, city councils, school boards and special districts hold budget hearings to determine how many dollars will be needed for the following year's operations. These hearings are usually held in September or October, but may be held earlier. Check your local newspaper for the hearing dates. After receiving the Certification of Assessed Values letter from the Assessor, the taxing entity sets the mill levy to be applied to the total assessed values at a level that will generate the appropriate amount of property tax revenues to fund operations.  Most taxing authorities have revenue streams in addition to property taxes they use to fund operations.

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Limitations on Revenue

Colorado law prohibits revenue increases by taxing entities greater than the amount of local growth plus inflation. An election is held and voters approve, in advance, an increase above the current revenue limitations. Local growth is determined by either a percentage change in student enrollment for school districts or based on a new construction formula for all other districts. Inflation is defined as the percentage change in the United States Bureau of Labor Statistics Consumer Price Index for Denver, Boulder.

Note: Revenue increases are limited to a maximum 5.5% even if inflation exceeds this percentage.

Example:

Setting the tax rate (or mill levy) for a single taxing entity:

Assume the total assessed value for the county as determined by the assessor is $100,000,000. The county commissioners determine the budgeted property tax revenues to be $2,434,600.

$2,434,600 / $100,000,000 = .024346, or 2.436%, or 24.346 mills

Therefore, the county tax rate is $24.35 in revenue for each $1,000 of assessed value.

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Determination of Tax Rates

After each taxing authority has set its mill levy, the taxing authority mill levy is combined with the mill levy for all other taxing authorities for the property to create the overall mill levy for the property. Where you live within the county determines the taxing entities to which you will pay your taxes.

Example:

Mr. Smith's home is provided services by four taxing entities. His total assessed value is determined to be $19,900.
 

 

 

 

Each mill is 1/1,000 of a dollar so the mill levy per dollar of assessed value is:
90.1650/1,000 = .090165.

Therefore, Mr. Smith's tax bill is calculated as follows:

Actual Value	X	Assessment Percentage	X	Tax Rate	=	Property Taxes
$250,000	X	7.96%	X	.090165	=	$1,794.28

 

 

    
    

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Last Modified: Mar 28, 2009 10:16 PM
Send questions or comments about this Web site to assessor@jeffco.us.