How are Colorado Springs property taxes assessed?

Question

For those of you that have investment properties in Colorado Springs, how are property taxes assessed?  Are they based on the purchase price of the property?  I'm just trying to determine if the property taxes on a particular property I'm analyzing would increase following my purchase.  Thank you in advance.

Erin Spradlin · Answer

@Paul Lee - I think the passage of the Gallagher amendment will also be impacting taxes in Colorado Springs, Denver (all of Colorado actually) around 2022. They estimate it will double the taxes, which shouldn't be that big of a deal since I think we have the 47th lowest property tax rate. In the future at the higher rate, it'll be closer to $3-4500K/year for most people in Denver and Colorado Springs. More info on Gallagher here: https://buildingabettercolorad...

Mike Wadsley · Answer

State wide, the taxing system is the same where residential property taxes are determined by the taxing authorities mill levy. I see that you're in Denver, so that piece is the same as Denver.

El Paso County has a pretty good breakdown of the local mill levies for the area where your property is located. For your particular property, you can look up the total mill and how it breaks down.

https://property.spatialest.co...

Chances are the taxes won't go up significantly in the near future, but as Erin mentioned, the Gallagher amendment is a bit of a wild-card.

Bill B. · Answer

I’m sorry but those property taxes seem high enough already and you’re saying they’re going to double next year? I really wish I would a taken a swing at Colorado Springs 1/2 a dozen years ago. I hear nothing but good things about it.

Michael Kaufman · Answer

Hi Paul, I work as a property tax consultant primarily in Colorado and think I can help you here.

To answer your question on how property taxes are assessed - its a multiple layered answer. Every two years (on the odd numbered year) each county will re-assess properties for tax purposes. The assessment is to determine the Fair Market Value of the property. The county appraisers determine the FMV through appraisal practices, looking at sales of similar properties within a 18-month period up until 6 months from the assessment date. For example, in a 2021 tax year (payable 2022), market data is collected from 1/1/2019-6/30/2020. If the your property sold during that time frame, they will more than likely target that purchase price for 2021 and 2022 will be the same value.

Per the Gallagher Amendment, Commercial properties are Assessed at a fixed 29% and the residential rate (including any property where people live) fluctuates to allow for the property tax revenue split required by state law that the counties can obtain. This split is 55% of property tax revenue comes from commercial and 45% comes from residential. Because the Assessment Ratio for residential is the only variable and is not "locked in", that percentage changes. Currently the assessment ratio for Res is roughly 7.15%, meaning if your property is valued $1,000,000 then you are taxed on $71,500. From there if you take the mill levy and divide by 1000, you have your tax rate. The fastest way to estimate your property tax liability is the following:

Example - $1,000,000 property value and 74.195 Mill Levy... (74.195/1000 * 0.0715) * $1,000,000 = $5,305

(residential taxes in Colorado are some of the cheapest in the Country)

Colorado is very aggressive in raising property values for tax purposes. If you plan on purchasing a property, know that in the next odd year it will jump if you bought above the current Appraised Value! Best of Luck in your investment!

Steven Garcia · Answer

I am an investor in Colorado Springs.  Property taxes are assessed every two years.  On the tax statement there is an “assessed value” which the assessor gives your property. This is not the sales dollar amount or market value.  On my properties the assessed value is usually 80-110k less than market.  Property tax in Colorado Springs is relatively low.  On two on my properties I pay less than $1000 for the year.  Let me know if you have other questions.

Steve

How are Colorado Springs property taxes assessed?

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