Understanding Your Property Taxes
Will property taxes go up in 2019? Better yet, just how are property taxes calculated? Here in Colorado Springs the El Paso County Assessor re-evaluates the value of homes every two years, usually in odd years. Since 2019 is an odd numbered year we will see properties re-evaluated this year.
He starts with the CURRENT MARKET VALUE of the home. Market Value is based on the most recent comparable sales in the area.
Once market value is determined, he multiplies the current market value by 7.2% which is the ASSESSMENT RATE for all residential properties.
MARKET VALUE times 7.2% = ASSESSED VALUE.
Once the assessed value is determined, he multiplies that by the CURRENT MILL LEVY for the area. And that result is your annual property tax.
The mill levy for your area is dependent on many factors including but not limited to the school district, fire district, water district, library district, special taxes for new roads or infrastructure, your county, and city. These various taxing entities comprise the total mill levy for an area. A mill levy in one area may be higher than another. For example, the taxes for School District 20 are higher than those of School District 11. Although, a school district is not the only taxing entity in an area, the example gives you some information regarding the varying taxes for El Paso County.
Let’s look at this real world example of calculating property taxes:
Market value = $300,000
X assessment rate of 7.2% = $216,000(assessed value)
$216,000 X mill levy rate .89% = $1,922.40
$1,922.40 = new property tax rate for this year
You can appeal the assessed value of your Colorado Springs home, thereby possibly lowering your property taxes. If you choose to do so, remember the El Paso County Assessor will only consider comparable sales for a specific period. That period must fall within the Assessor’s specific collection dates. For this task, I recommend calling your Realtor. As a part of our ongoing service and commitment to you, we can easily provide those comps to help you through the process.