Calculating Your Property Taxes
The Assessment Division does not set property taxes or collect payments. However, we can provide the following general information about how your most recent property tax bill (2012 taxes payable in 2013) was calculated and how to estimate taxes.
To calculate taxes, Actual Value is adjusted by the appropriate Assessment Rate to determine its Assessed Value. Commercial properties are multiplied by 29% (0.2900) and residential properties, including apartments, by 7.96% (0.0796).
The Assessed Value (less any exempted amount) is next multiplied by the applicable Tax Rate. In Colorado, tax rates are expressed as a decimal fraction of a dollar for every one dollar of Assessed Value. Know as millage or mills, one mill is 1/1,000th of a dollar or $0.001 (1/10th of a penny). Millage greater than one mill is usually written as a whole number followed by three digits to the right of a decimal point.
In 2012, Denver's combined general millage or Mill Rate including Denver Public Schools and Urban Drainage District was 84.071 mills or a tax rate of $0.084071 for every $1 of assessed value.
Also in 2012, the typical single family Denver home was valued at about $225,000. As a result, the property tax calculation for a typical residential owner was:
Actual Value x Assessment Rate x Mill Rate (Tax Rate) = Taxes
Typical Denver Residence
$225,000 x 0.0796 x $0.084071 = $1,505.71
As shown above, the tax calculation has three parts. The Actual Value comes from the Assessor and is shown on the NOV mentioned above. Assessment Rates are set annually by the State Legislature (current precentages have been in place since 2002). Tax Rates are set in December each year by taxing authorities like the City and County of Denver, Denver Public Schools and others listed on the tax bill. For more information regarding how tax rates are determined, contact the taxing authorities directly.