After a decade of skyrocketing property values, Colorado taxpayers are receiving statements this week that show more modest increases.
For Denver residents, the median 2.7 percent increase in property value assessments is the lowest since 1991 and comes after a 19.5 percent increase in 2003 and a 30.9 percent increase in 2001. Other metro- area counties saw increases of between 1.65 and 6 percent.
Some neighborhoods, however, saw percentage increases in the double digits, with mixed reaction from residents.
“Oooh, now I can sell, but I don’t want to sell,” said Rose Pettinger, whose house at 4430 S. Yates St. in Denver increased in value more than $24,000.
But Joni Janak said she was furious when she received the letter from Jefferson County.
“It’s astronomical,” she said of her Golden home’s increased valuation, which she fears will increase her taxes. “I know the value of these homes are going up, but not that much.”
The valuations, based on the property’s condition and recent sales of similar property, has leveled off as the prices of homes have inched – instead of shot – up.
“Clearly, there’s a slowing in property values,” said acting Denver Assessor John Ragan.
Statewide, the increases average about 6 percent and are substantially less for most people than in the past decade.
Areas in Denver range from no increase to a 14 percent increase for residents of Southmoor Park.
All property owners have until June 1 to protest the value, which will be part of what will determine the property owner’s tax bill next year.
But even owners whose property values jumped will not know whether their property taxes will increase until the end of the year.
To set property taxes, the value of a home is multiplied by 0.0796, the number set by the state to make sure that money coming from residential property is 10 percent less than that paid by commercial property as prescribed by the Gallagher Amendment.
The end number is the taxable value of the home.
Then cities, school districts and other taxing bodies determine the mill levy that will determine the tax.
Taxing bodies are limited by the Taxpayer’s Bill of Rights to increasing revenue by inflation and population growth. If sales-tax revenue increases substantially, there will be a limit to the amount the governments can collect in property taxes.
“Your value might change,” explained Jim Rhoades, president of the Colorado Association of Realtors. “But if your house went from $200,000 to $220,000, your taxes might still go down.”
The mill levies are set in December, and tax bills go out in January.
In Denver, the median residential home of $216,000 is taxed on about $17,000, and if the levies stay the same, that will result in an increase of about $44 a year, according to the assessor’s office.
If owners believe that their properties are appraised too high, experts urge them to appeal. But they must have a legitimate reason, said John Plotkin, a lawyer who specializes in property taxes at Denver law firm Sterling & Gregory.
“If you think it’s too high, you need to do some soul searching to make sure it’s really too high,” he said. “It can’t just be a gut feeling.”
The assessor will want evidence. For instance: The county has the square footage wrong; the owner bought the house six months ago for substantially less than it is valued; or a neighbor sold an identical property for much less.
Appeals must be received by June 1. If the assessor doesn’t agree with the homeowner, it can be further appealed to the county, state and even courts.
But some metro residents did not fear a tax increase.
Fred Seybold, 68, of Aurora said the home he has owned for 17 years has decreased about $4,000 this year.
“I wouldn’t mind to see the taxes go up a little in Aurora,” he said, sitting on the porch with his 7-year-old granddaughter, “if it went to cultural arts and that kind of thing.”
Staff writers Felisa Cardona, John Ingold and George Merritt contributed to this report.
Staff writer Arthur Kane can be reached at 303-820-1626 or akane@denverpost.com.
