Join us September 13 at 10am for a property tax forum!

As you likely know, property values have increased in the past few years which results in the assessed value of properties for the purpose of property taxation. Over 7,000 property valuation appeals were received this year, and 91% of Colorado voters indicate that rising property taxes are somewhat or a big concern.

The valuation process is relatively easy to understand; it is based on sales data of comparable properties. For the most recent reappraisal, the data covered the period from June 30, 2020, through the same date in 2022. Based on that reappraisal, taxes are levied for the 2023 tax year, with those taxes payable in 2024.

What is less well understood is how property taxes are assessed. First, some definitions of terms:

Assessment of Property Value: County assessors determine the value of your property, often using methods such as market comparisons, income analysis, and cost estimation. This assessed value serves as the basis for calculating property taxes.

Assessment Rate: The assessment rate is applied to the assessed value to arrive at the property's "assessed value for taxation."

Calculation of Taxable Value: The assessed value for taxation is multiplied by the appropriate assessment rate. This calculates the property's taxable value.

Mill Levy: A mill levy is the amount of tax payable per dollar of the property's assessed value. It is expressed in "mills," where one mill is equal to one-tenth of a cent. Mill levies are determined by local governments, special districts, and other taxing entities.

Property Tax Calculation: To calculate the property tax owed, the taxable value is multiplied by the mill levy. The resulting amount represents the annual property tax amount that the property owner is required to pay.

Hopefully, you’re still following. The formula is actual value (i.e., market value) times assessment rate (a percentage dependent upon the property classification set by the state) equals assessed value (the value on which a property is taxed. The assessed value is then multiplied by the tax rate (the levies imposed by taxing districts) divided by 1,000 to equal property taxes.

More simply stated: Actual Value x Assessment Rate = Assessed Value. Assessed value x (mill levy/1,000) = property tax.

Long story short, we know that property owners face the possibility of historic property tax increases. A group of taxing jurisdictions in Eagle County is holding a property tax forum on September 13 from 10:00 a.m. to 12:00 noon at the Eagle County Room in the County Building to explore property taxes, Proposition HH (on the November ballot), and its impacts on mill levies.

The meeting will:

1. Help taxing entities understand how other taxing entities are responding to the changing legislative scene and extraordinary increase in property values
2. Help taxpayers understand how mill levy rates can/may be adjusted to mitigate the impact of the large increase in property values.

The session will include a presentation followed by a panel discussion from local taxing districts regarding their conceptual plans for mill levy rates both if Proposition HH passes and if it fails. This session is not intended to pressure districts but rather to educate and understand what districts are planning.

The meeting is open to the public and anyone interested in property taxes is welcome and encouraged to attend. We have worked to invite as many taxing districts as possible and encourage all board members, district administrators, and others within our taxing entities to join us on September 13 at the Eagle County building for this session. Please RSVP in advance to cromer@vailvalleypartnership.com.

Chris Romer is president & CEO of Vail Valley Partnership, the regional chamber of commerce. Learn more at VailValleyPartnership.com