Appeal Your Outrageous Property Tax Assessment

Millions of Coloradans open their mailboxes each spring to find property tax statements waiting for them. Bracing oneself before paying a large bill is a normal experience to have. However, property owners are not used to the high assessments reflected in recent statements.

In 2023, assessors from 64 counties warned owners that their property taxes would increase, and they did – anywhere from 35 to 80 percent.

Ideally, property tax assessments give owners a better sense of their properties’ market value. Local governments also use these assessments to determine how much every property owner should pay in taxes to ensure fair and equitable distribution.

Unfortunately, these aren’t the experiences our clients are having. Instead, we’re representing them in cases that involve property overvaluations based on poor market research practices.

To make matters worse, most people don’t even realize they have the right to an appeal.

If you recently saw your statement and thought this doesn’t look right, your next thought should be about your right to a property tax appeal. A Colorado real estate attorney can guide you through the process.

How Assessors Determine Property Value

Here’s how property tax assessments work. For residential properties, it’s all about market research. There are more variables when it comes to assessing non-residential properties, but it is mostly about market research.

To determine an estimate, the assessor compares your property to similar ones recently sold, adjusting for differences like location, size, age, use, or condition.

Your assessor arrived at the number on your statement by multiplying your property’s market value by the assessment rate. For residential properties, that’s 7.96 percent and 29 percent for commercial properties. This produces your assessed value, which is then used to calculate what you owe in property taxes.

Where Assessors Get It Wrong

Hopefully, you’re starting to grasp just how big the margin of error really is.

If not, let me put it to you this way: Assessor market research doesn’t include house calls. So, if, in the last year, you have undertaken a major remodeling project that increased the size of your home, you’ve increased your property’s value. This might result in an undervaluation.

The opposite would be true if, in the last year, you did not keep up with interior property maintenance. In contrast, this would be considered an overvaluation.

Shoddy market research can create conditions for overvaluation. So can inaccurate property records.

Think about it: If assessors update their property valuations every other year, ending with an odd number, the probability that all relevant information about the property will remain accurate is low. A lot can happen in two years, from renovations to damages – even zoning changes.

These can all be grounds for property tax appeals. Colorado assessors saw a 300 percent increase in appeals in 2023 alone. They can’t all be discredited!

How to Appeal Property Tax in Colorado

You have every right to appeal if you suspect your assessor is overtaxing your property. The first step is to file a protest with your county’s assessor. The second step is to appeal to your county’s Board of Equalization and file your case with the courts.

Before you file, you’ll want to verify what information your county assessor’s office has on your property. Contact your county’s Board of Equalization to obtain this information. You also want to collect evidence for your appeal and identify any witnesses willing to testify on your behalf.

Property owners have 30 days upon receipt of their statements to start the property tax appeals in Colorado.

Note that your county assessor and Board of Equalization will likely have legal representation. Therefore, to ensure the best possible outcome in your case, you should also hire an attorney.

Hire an R&H Real Estate Attorney for Your Appeal

Property tax appeals in Colorado are rarely straightforward. Without a knowledgeable real estate attorney, your appeal could cost more than your property taxes. Call 303-688-0944 to begin your case assessment.