Calculating the Property Tax in Denver Colorado (For New Homeowners)

Congratulations on becoming a new homeowner in the beautiful city of Denver, Colorado! The state has become more and more popular over the past few years, and you join the ranks of many lovely people coming to call the state their new home.

As a responsible homeowner, one of the essential financial obligations you’ll encounter is property tax. Understanding how property taxes are calculated is crucial, as it directly affects your overall homeownership expenses.

How can go you through the process of calculating property tax in Denver, Colorado?  What knowledge do you need to budget effectively and plan for the future? Read on and we’ll walk you through everything that you need to know.

How Property Tax Payments Work in Colorado

Property taxes play a vital role in funding local government services. These include things such as schools, public safety, road maintenance, and other essential community programs.

In Denver, the property tax system operates under the authority of the Denver Assessor’s Office. The office determines the taxable value of each property. It then applies the appropriate tax rate to calculate the annual property tax amount.

There are ways to bring your overall tax burden down. There are tax credits you can obtain in the county of Denver to help lessen your tax lien.

For example, there are tax rebates in place for homeowners who embrace solar energy. Installing solar energy systems at your home can help cut costs down when it comes to your property tax debt.

You can click this link now for more information on how solar can help relieve your tax burden.

How The Process Works

First, the assessor’s office starts with the assessed value of your property.

The Denver Assessor’s Office is responsible for establishing the assessed value. It is generally based on the property’s market value, though some other factors may weigh in as well. This value is recalculated periodically, but for most residential properties, it is assessed every two years.

During this time, an assessor from the office will come to visit the property and determine its value.

Keep in mind that Colorado has property tax assessment limits for residential properties. This helps to prevent drastic increases in assessed values. Once the assessed value of your property is determined, it needs to be adjusted with the residential assessment rate.

This rate is set by the Colorado General Assembly. It is a fraction of the property’s actual value. For residential properties in Colorado, the residential assessment rate is typically lower than the rate for commercial properties.

After applying the residential assessment rate, the next step is to factor in local mill levies. Mill levies are used to calculate the final property tax amount.

They are expressed in “mills,” with one mill equal to one-tenth of one percent (0.001). These levies are imposed by various local government entities, such as the city, county, school districts, and special districts. They are used to generate revenue for their respective budgets.

Once the above values are set, there’s just a bit of math to be done.

To calculate your property tax, multiply the adjusted assessed value by the total mill levy applicable to your property. The resulting figure will be your annual property tax obligation.

Appealing the Property Tax Assessment

What if you think you are being charged far too much for your property? If you believe the assessed value of your property is inaccurate or unfair, you have the right to appeal the decision.

The Denver Assessor’s Office usually provides information and instructions on the appeal process on its official website, but we’ll cover the basics here.

In Denver, the window for filing an appeal is relatively short.

It is typically around 30 days from the date the assessment notices are mailed out. The exact deadline for filing an appeal should be clearly stated on the assessment notice. It’s crucial to act promptly if you wish to dispute the assessed value.

It’s important to be prepared with relevant evidence to support your case if you decide to appeal.

To build a strong case for your appeal, you’ll need to gather evidence that supports your claim that the assessed value is inaccurate. Evidence may include recent appraisals, sales data of comparable properties (comps) in your neighborhood, photographs showing property defects, or any other documentation that proves discrepancies in the assessment.

The Denver Assessor’s Office will provide an appeal form on their website or along with the assessment notice. Ensure you fill out the form accurately and provide all required information. Clearly state the reasons for your appeal.

Make sure to attach any supporting evidence you have collected.

Once you have completed the appeal form and gathered all necessary documentation, submit it to the Denver Assessor’s Office before the deadline indicated on the assessment notice. You may be required to mail it or submit it in person at the designated office, so double-check the instructions provided.

Calculating Property Tax in Denver, Colorado

If you’re moving to the beautiful city of Denver, there’s a lot to be excited about. One thing that may be less exciting is to think about how much you’ll owe in property tax in Denver, Colorado.

It can be helpful to get a sense of this number as early on as possible. The above information can help you understand how property tax payments are handled in Denver. You can use this info to help estimate how much you may owe on your own new home.

Have more questions about being a homeowner? Need more financial help? Keep scrolling our blog for more.