The constitution and state laws of Colorado have established real and personal property assessment procedures and requirements. The values which are determined by the Assessor for real and personal property are used in the calculation of property tax bills. The revenue raised through these property taxes is used to help pay for all public services including police, schools, libraries, fire protection, and other city services.

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For residential properties, the Assessor studies the sales of homes similar to yours which sold within a specific 18-month period. This procedure is required under Colorado law. For commercial and industrial properties, an income approach is used, and for business personal property values are based on the asset information declared by the business owner.

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Under Colorado law, all real property (land, buildings, homes, etc) must be re-appraised every two years; this occurs in each odd-numbered year (2001, 2003, etc). The Assessor's office studies the prices of properties which sold during the 18-month period which ends on June 30 of the year prior to the reappraisal. Thus, new 2007 values will be based on properties which sold between January 1, 2005, and June 30, 2006. As for personal property owned by businesses, new values are set each year based on the information declared by the taxpayer on the annual personal property declaration.

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In order to determine new values for residential property (including single-family, multi-family and apartment properties) all Colorado assessors are required by law to use only the market approach to value. For 2007 property values, the sales prices of homes similar to yours which sold between January 1, 2005, and June 30, 2006, will be studied. If the real estate market is active during this 18-month period, the values of many types of homes could increase. If the sales prices of homes similar to yours have gone up, then the assessed value of your home will likely show an increase.

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If your property value has increased, that does not automatically mean that your property tax will go up by the same percentage. THE ASSESSOR DOES NOT SET PROPERTY TAXES OR MILL LEVIES. Property taxes are determined by multiplying your home's assessed value by the mill levy. Mill levies are set in December of each year by the various taxing authorities (city council, Denver Public Schools, any special districts you might reside in, etc). All the mill levies for the taxing authorities are then added together into one overall mill levy.

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The Assessor determines the "actual" (market) value for all real and personal property. Then, a percentage of that value is taken in order to derive the "assessed" value. For all commercial and business personal property in Colorado, the assessment percentage is 29%; for example, if a commercial or business personal property owner receives a notice from the Assessor stating that their actual value is $100,000, then their assessed value is 29% of $100,000, or $29,000. For all residential property, a new assessment percentage is determined each year by the state. The most recent assessment percentage for residential property was set at 7.96%; thus, 7.96% of a home's actual value was calculated in order to determine the assessed value. Your assessed value, multiplied by the mill levy, produces your annual property tax bill.

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