In a recent article on www.SmartAsset.com property taxes in Colorado are used to support local services and 100 percent of property tax revenue stays within the county in which it is collected.
The website speculates that is part of the reason Colorado has some of the “lowest residential property taxes in the country, with an average effective rate of just 0.57 percent.”
For perspective, Adams County is the highest with the median home value of $216,700, median annual property tax payment of $1,602 and average effective property tax rate of 0.74 percent. The lowest is Jackson County with the median home value of $170,300, median annual property tax payment of $378 and average effective property tax rate of 0.22 percent.
The site states: “Residential property taxes in Colorado depend on two things: the market value of the property and the total tax rates local taxing authorities levy. Taxing authorities include counties, cities, school districts and some special taxing districts set up for specific purposes.
“Property is valued in two-year cycles, based entirely on comparable sales. The price of other homes sold in your area determine the value of your home. Notices of valuation are mailed to homeowners by May 1 every year and homeowners who disagree with their home’s valuation have until June 1 to protest.
“Tax rates in Colorado do not apply to market value but to assessed value, which is equal to a fraction of the market value. That fraction, called the residential assessment rate, is recalculated regularly by the state. For tax years 2017 and 2018, it is 7.20 percent (for tax year 2016, the rate was 7.96 percent). So, if your home has a market value of $300,000 (based on comparable sales), the assessed value is $21,600 ($300,000 x .072 = $21,600). Your tax rate only applies to that $21,600.”
Alamosa County ranks ninth as the best overall county in Colorado of “Getting the Best Bang for Their Buck” when it comes to property taxes. The property tax rate of 59 percent, a school rating of 4 out of 10 and a crime rate of 526 per 100,000 population.
The state average is 55 percent for property taxes, 5 out of 10 for school rating, and 3,629 per 100,000 population.