Colorado property taxes can be downright confusing at times.
If you own property in Colorado, you may have recently received a notice of reevaluation of property taxes for the coming year. What does this mean for Denver landlords, and how can you protest the increase in your property’s taxes? Keep reading to find out.
How Does This Property Tax Reassessment Differ From Past Years?
Property tax reassessments over the past years in the state of Colorado have remained relatively steady. We’ve seen slight increases in taxes, but nothing major or concerning for Denver area landlords.
This year is a different story. We’ve seen increases on average anywhere from 40-60% of property values!
This is a huge increase, and is worth taking the time to look into if you own property in Colorado to evaluate if it is in your best interest to protest your property taxes. Here’s what Denver landlords need to know before protesting your taxes:
Find Your Notice of Evaluation
The first thing you need to do is to find out what the county is saying your property is now worth.
Most Colorado property owners will receive a postcard size notice from your county assessor’s office noting the current valuation of your property, and the new valuation for the coming tax year.
You’ll also receive some additional information on the property and instructions on how to protest your taxes, as each county has slightly different instructions.
If you did not receive this notice, you can still find out this information by going online to your county assessor’s website. Once you access this website, you’ll be able to enter the property’s address and find out all of the same information outlined above.
Review for Accuracy
Once you’ve obtained your property valuation information, the next step is to review it for accuracy.
Make sure the county is accurate on property characteristics. Pay attention to these key characteristics:
- Square footage
- Bath count
Review Denver Neighborhood Comps
If all of these property characteristics are correct, you’ll want to look at the actual estimated value of your property. If the county is overestimating the value of your Denver property, this is a good reason to successfully appeal your property taxes.
For example, if two neighboring properties recently sold for $200,000 and $205,000 respectively, and the county says your property is worth $300,000, this could be a red flag.
You can use this neighborhood comparable information to show the county this evaluation information so that they can accurately charge you the right amount of taxes. How do you do this? You need to get your hands on your neighborhood property data to show the county as backup.
If you are a client of Grace Property Management, we are happy to provide this data to you as a full-service real estate sales business. We can tell you exactly what neighboring properties are selling for, and give you the data you need to bring to the county.
Not a current client? Learn more about the benefits of working with Grace Property Management here!
Appeal Denver Property Taxes Online or by Mail
If you notice that the county is not evaluating something correctly and you decide you’d like to appeal your Denver property taxes, you can do this online or by mail.
Every county handles property tax appeals differently, so make sure to read the appeal instructions carefully to avoid any unnecessary delays. If you are confused throughout the appeal process, don’t be afraid to call the Assessor's Office and speak to a live human who can answer any questions you may have.
In your appeal, make sure to be very detailed in your reasoning for appeal and provide the necessary evidence. Simply saying that the county’s valuation of your property is too high is not enough. Explain why the county is wrong in its valuation of your property, and provide the necessary evidence to back up your claim.
Remember, Colorado property tax appeals are free, so there’s no excuse to not taking advantage of this!
Reassessments Are for Next Tax Year
The taxes for 2019 have already been paid. If you are successful in appealing your taxes, it’s not going to change your past tax bill, rather it will affect next year’s property tax bill.
The deadline for appealing property taxes in Colorado is June 3, 2019. Property taxes are evaluated every two years, so if you miss this window to appeal, you won’t be able to appeal again for another two years.
Save Money on Your Denver Property Taxes with Grace Property Management
At Grace Property Management, we want to do whatever we can to help you make sense of Denver property taxes for this year, and years to come.
Have specific questions about your property? Contact Grace Property Management today!