SLIDE 1
Property Taxes in Colorado
Total - $8.1 billion in 2016 Counties - $1.7 billion General Fund - $1.64b
Other - $0.09b
Source: Division of Property Taxation, 2016 Annual Report.
Property Taxes and the Gallagher Amendment Colorado Legislative - - PowerPoint PPT Presentation
Property Taxes and the Gallagher Amendment Colorado Legislative - - PowerPoint PPT Presentation
Property Taxes and the Gallagher Amendment Colorado Legislative Council Staff Property Taxes in Colorado Total - $8.1 billion in 2016 Counties - $1.7 billion General Fund - $1.64b Other - $0.09b Source: Division of Property Taxation, 2016
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Property Taxes in Colorado Actual Values Local Mill Levy Assessment Rate Assessed Values
× =
Taxes Owed
× =
7.20% Residential* 29% Nonresidential
87.5% Oil and Gas
Assessed Values
*2017 Residential Assessment Rate
SLIDE 4
Gallagher Amendment
Added to the state constitution in 1982 Governs the share of residential and non-residential property in the state.
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Residential 75%
Non-residential
25%
Market Value Target Share
Non-residential 55%
Residential 45%
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Residential Reassessment Cycle
Tax Year Valuation Date Assessment Cycle 2013 July 1, 2012 2013 Re-Assessment Cycle 2014 July 1, 2012 2015 July 1, 2014 2015 Re-Assessment Cycle 2016 July 1, 2014 2017 July 1, 2016 2017 Re-Assessment Cycle 2018 July 1, 2016
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Residential 75%
Adjusting the Target Percentage
Residential 45%
Existing Tax Base + New Construction + Change in Volume
+ + +
SLIDE 8
Residential 45.76%
Non-residential 54.24%
Residential 45.67%
Non-residential 54.33%
Target Percentages 2015 2017
Source: Division of Property Taxation.
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Residential Market Value Residential Assessment Rate
%
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$0 $200 $400 $600 $800 $1,000 $1,200
2014 2015 2016p 2017f 2018f 2019f
Actual (Market) Values
The Colorado Property Tax Base
Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate.
Residential
Billions
Non-Residential
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$0 $200 $400 $600 $800 $1,000 $1,200
2014 2015 2016p 2017f 2018f 2019f
Actual (Market) Values
The Colorado Property Tax Base
Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate.
Residential
Billions
Non-Residential
Annual Non-Residential Growth = 3.6% Annual Residential Growth = 10.1%
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$0 $20 $40 $60 $80 $100 $120
2014 2015 2016p 2017f 2018f 2019f
Assessed Values
Actual Values × Assessment Rate = Assessed Values Billions
Source: Division of Property Taxation and Legislative Council Staff forecast.
Residential Non-Residential 29% assessment rate 7.96% assessment rate
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$0 $20 $40 $60 $80 $100 $120
2014 2015 2016p 2017f 2018f 2019f
Target Percentage
Assessed Values
Actual Values × Assessment Rate = Assessed Values Billions
Source: Division of Property Taxation and Legislative Council Staff forecast.
Residential Non-Residential 29% assessment rate 7.96% assessment rate
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$0 $20 $40 $60 $80 $100 $120
2014 2015 2016p 2017f 2018f 2019f
Assessed Values
with Required Residential Rate Reductions Billions
Source: Division of Property Taxation and Legislative Council Staff forecast. * Legislative Council Staff will Forecast 2019 RAR in December 2017.
Residential Non-Residential 29% assessment rate 7.20% 7.96% assessment rate
RAR*
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$0 $20 $40 $60 $80 $100 $120
2014 2015 2016p 2017f 2018f 2019f
Target Percentage
Assessed Values
with Required Residential Rate Reductions Billions
Source: Division of Property Taxation and Legislative Council Staff forecast. * Legislative Council Staff will Forecast 2019 RAR in December 2017.
Residential Non-Residential 29% assessment rate 7.20% 7.96% assessment rate
RAR*
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Change in Residential Assessed Values by County
2016 to 2017
Source: Legislative Council Staff forecast.
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Change in Total Assessed Values by County
2016 to 2017
Source: Legislative Council Staff forecast.
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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% 2017-18 7.20%
Source: Division of Property Taxation.
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