Real Properties in Colorado will be re-appraised this year, which happens every odd year. Property owners will be getting a notice of valuation by May 1st of this year. The new tax amounts will go into effect for the years 2009 and 2010 (payable in 2010 and 2011). Now, here's the interesting part. We (property owners) are being warned to expect property values, and therefore, property taxes, to increase, rather than decrease, despite the obvious decline in the real estate market over the past couple of years. As explained by Debbie Griffith, the Delta County Assessor, who visited my Delta office recently, if values do increase, it will be because the sales data collection period ends on June 30, 2008. While sales volume (i.e., quantity sold) fell signicantly, values generally did not during this period from mid-2006 to mid-2008. In fact, some values increased. This explanation has been echoed in newspaper articles I've read in both Ouray County and Montrose County. In truth, depreciation in values in our area have lagged considerably behind the declines in harder hit areas of the country. Our regional MLS market statistics bear this out. Despite this explanation, I'm anticipating a lot of property owners will be puzzled, and not necessarily happy, when they receive their notice of valuation to find the value of their property has increased, and, consequently, so have their property taxes.
Valuation and taxation in our counties are a rather complex process. You can get a pretty good explanation by reading the brochure, Understanding Property Taxes in Colorado available on the Montrose County website. As Delta Assessor Griffith explained, complicated, statistical formulas exist to determine value, which vary among different distrcits or areas. In some cases, valuations can be more accurate because maybe 140 properties are being compared versus 5-7 in a typical appraisal. On the other hand, they may not be as accurate because variations can exist among smaller, more specific areas or neighborhoods and because most properties are not physically inspected. For this reason, disgruntled tax payors may appeal if they disagree with a valuation. Be forewarned the period to appeal is very short. The appeal must be received by the Assessor by June 1st (if mailed, the appeal must be post-marked by June 1st). In Delta County, you may also appeal by telephone. The appeal should include an explanation as to why the value is wrong, which is most often done by comparing your property to other similar properties that sold in your neighborhood or nearby. You can also request that the Assessor visit your property to confirm he/she has current and correct information. Be careful with that, however, because a physical inspection could result in even higher taxes if the Assessor discovers signficant remodeling or other improvements, expecially those that increase square footage or living space, new outbuildings, etc., about which the Assessor previously had no information.
If you contemplate making an appeal, you should review the information in your notice of valuation carefully. Then, you can research recent sales in most neighborhoods via the Assessor's Property Record Search (ITAX in Montrose, ITAX in Delta, and ITAX in Ouray. Most Realtors are willing to provide at no cost recent sales information to anyone who wishes to appeal their taxes. That is certainly true of me or any of the broker associates in my office. Of course, if you're contemplating selling your home this year, and your value goes up, then maybe you should just count your blessings!
Comments(0)