Property Taxes and Gallagher Amendment Property Taxes in Colorado - PowerPoint PPT Presentation

Property Taxes and Gallagher Amendment

Property Taxes in Colorado Actual Values Assessment Assessed = × Rate Values 7.96% Residential* 29% Nonresidential Assessed Taxes Local = × Values Owed Mill Levy *2016 Residential Assessment Rate 2

Gallagher Amendment Target Share Residential Existing Homes 45% + New Construction Existing Nonresidential Nonresidential Property + 55% New Construction + Productivity Changes 3

Market Value Target Share Residential Residential 45% 75% Nonresidential Nonresidential 25% 55%

Residential Assessment Rate % Residential Market Value 5

Actual (Market) Values The Colorado Property Tax Base Billions $1,000 $900 $800 Non-Residential $700 $600 $500 $400 Residential $300 $200 $100 $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate. 6

Actual (Market) Values The Colorado Property Tax Base Billions $1,000 Annual Non-Residential Growth = 2.0% $900 $800 Non-Residential $700 $600 $500 $400 Residential $300 Annual Residential Growth = 8.6% $200 $100 $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate. 7

Assessed Values Actual Values × Assessment Rate = Assessed Values Billions $120 Non-Residential 29% assessment rate $100 $80 $60 $40 Residential $20 7.96% assessment rate $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. 8

Assessed Values Actual Values × Assessment Rate = Assessed Values Billions $120 Non-Residential 29% assessment rate $100 $80 $60 Target Percentage $40 Residential $20 7.96% assessment rate $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. 9

Assessed Values with Required Residential Rate Reductions Billions $120 Non-Residential 29% assessment rate $100 $80 $60 $40 Residential $20 7.96% assessment rate 6.85% 6.10% $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. 10

Assessed Values with Required Residential Rate Reductions Billions $120 Non-Residential 29% assessment rate $100 $80 $60 Target Percentage $40 Residential $20 7.96% assessment rate 6.85% 6.10% $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. 11

Assessed Values with Required Residential Rate Reductions Billions -$13.77B $120 -$7.56B -$7.42B Non-Residential 29% assessment rate $100 $80 $60 $40 Residential $20 7.96% assessment rate 6.85% 6.10% $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. 12

Change in Assessed Values by Region 13 Source: Legislative Council Staff forecast.

Larson Silbaugh Senior Economist, Legislative Council Staff (303) 866-4720 Larson.silbaugh@state.co.us

Residential Assessment Rates Statutory vs. Calculated Years Rate in Law Calculated Rate 1983-86 21.00% 1987 18.00% 1988 16.00% 1989-90 15.00% 1991-92 14.34% 1993-94 12.86% 1995-96 10.36% 1997-98 9.74% 1999-00 9.74% 9.83% 2001-02 9.15% 2003-04 7.96% 2005-06 7.96% 8.71% 2007-08 7.96% 8.19% 2009-10 7.96% 8.85% 2011-12 7.96% 8.77% 2013-14 7.96% 9.13% 2015-16 7.96% 8.24% 15