Have you ever wondered what all those numbers mean on your property tax bill? Walk around a bill with a Pueblo owner and find out.
Soaring home values in recent years mean that many Colorado property tax bills are also rising, and Casias is no exception. But the tax notices themselves are not so easy to understand.
Where does the value of the house come from on a tax bill?
Pueblo County assessor Frank Beltran met Casias outside the house. Casias asked Beltran how he assessed the value of his property.
“It’s done in stages,” Beltran said. “First, we have the whole county divided into economic zones, from there we go down to the neighborhoods.”
According to Beltran, this gives them a general framework for evaluating each house in a given area. Then they look for similarities in style, size, and other features, so they can group comparable properties together. For example, he said, “Is he a breeder? Is it a two story? Is it a four level? Is there a basement? »
He said he also assesses a home’s age and build quality. “When you walk into a house, you have to look at it and say to yourself, how was it built for the year it was built? Was it average or was it inexpensive or was it a fair build? »
Casias’ house is an average house by 1935 standards, according to Beltran.
Casias’ most recent tax notice shows his home is valued at just over $97,000, an amount that will likely change next year. He asked Beltran if he could use it as an appraised value if he wanted to sell his house.
“No,” Beltran said, “because ours is still based on information that is 18 months old. For this year, it’s based on all of 2019 and the first half of 2020.”
Beltran said current home sales will show up in the 2023 revaluation and with house prices rising, “everyone is still going to be up about 20% more. We had that last year. which have increased by 50 to 60% in some neighborhoods.
This value that comes from Beltran’s office is often referred to as base land value or market value, and as he noted, the appraisal cycle is a few years behind today’s real estate market.
What is “estimated value”?
Once the appraiser has determined the value of the property, it is multiplied by what is called the residential appraisal rate. This number is set by the state to determine the share of Colorado’s total tax burden paid by homeowners compared to other property types. It is currently 7:15 a.m.
Thus, for the house in Casias, the value determined by the appraiser is just over $97,000. This is multiplied by 7.15% and gives what is called a rateable value, in this case it is $6,950. This number is incorporated into the tax formula, which will eventually determine how much he owes.
How is the final tax bill calculated?
At the historic gold-domed county courthouse, Pueblo County Treasurer Del Olivas explained what happens next to the assessed value just calculated. This involves factory levies, which voters often see on their ballots. A mill is one dollar out of every thousand dollars of assessed value.
Olivas obtains the assessed value from Beltran, the appraiser, then adds up various factory levies to arrive at a total factory levy. On Casias’ bill, that includes the school district, library, and two water conservancy districts, as well as the city and county, all of which set their own annual fees.
“Each entity determines its own factory tax based on its approved budget,” Olivas said. The total plant levy is then applied to the taxable value to arrive at the tax amount.