Colorado Law requires that all real property be revalued on a two-year cycle in odd-numbered years. The 2007 assessment year is the beginning of the two-year cycle. The value determined by the assessor for the first year of the appraisal cycle is generally used for the intervening year as well. In nearly all cases, property values in Archuleta County have increased since the last reappraisal.
Property values are based on the market value of the property as of June 30, 2006. Sales that were used in determining market value are time-adjusted to reflect the estimated selling price for which the property would have sold on June 30, 2006. The assessment rate on residential property is 7.96%; all other property is assessed at the rate of 29%. Actual (market) value is multiplied by the assessment rate to calculate the assessed value. Assessed value is multiplied by the mill levy to calculate the property tax. Other typical questions and answers relating to the 2007 value of your property are listed below.
How was the value of my property determined?
For residential property, the Colorado Constitution requires that only the sales comparisons (market) approach be used by assessors. For vacant land, commercial and industrial property, the assessor considers the cost, market, and income approaches to value. For agricultural land, the earning or productive capacity of the land is considered in determining the agricultural land value.
For vacant land, sales are sorted by neighborhood, by subdivision, or by time-adjusted sales price per acre (or lot). Using the subdivision code number noted on your CMA record, you should be able to locate any sales that were used to establish your value utilizing the notebook containing the sales on the front counter.
For residential properties, single family residential sales are sorted by neighborhood, by subdivision, or by time-adjusted sales price per square foot of adjusted area. Using the subdivision code number, comparable residential sales can be located in the same manner as vacant land.
For commercial properties, sales are sorted by use type (retail, service station, banks, etc.) and can be found utilizing the notebook containing the sales on the front counter.
If your property is located in a neighborhood, subdivision, or is of a commercial use type with no sales, you will need to speak to the assessor or county staff about how your value was determined. In addition to the sales listings, the county has developed specific written documentation about how values were determined. This documentation is included in the notebook along with the sales listings.
If I feel the actual value determined by the assessor is higher than the market value of my property as of June 30, 2006, how should I document my case to the assessor?
First, taxpayers should review the listing of property characteristics for their property and bring attention to any errors listed. Property characteristics can be found on the assessor’s computer-assisted mass appraisal (CAMA) record.
Next, taxpayers should review the listing of sales that were used by the assessor to determine value. Copies of all qualified sales occurring within the January 1, 2005 through June 30, 2006 sales collection period are located in the notebook on the front counter.
Lastly, the taxpayer should be prepared to explain why they feel the value assigned by the county is too high. Specific examples include, but are not limited to:
• Incorrect land size and/or improvement square footage,
• Building(s) shown on the assessor’s records but no longer at the site as of January 1, 2007,
• Detrimental land characteristics such as steep terrain or restricted access that, when compared to other sales in the area, would negatively affect the value of the property.
• Any other characteristics or influences that are unique to your property that would affect the marketability or market value of your property.
The actual value assigned by the assessor is one of two factors that will affect the amount of property taxes owed by you on your property. Except to account for inflation and new construction, the Colorado Constitution restricts taxing authorities from collecting more property tax revenue than they collected the prior year. We recommend you contact the taxing authorities that have mill levies that apply to your property regarding tax revenues.