Protesting Property Taxes in Colorado: 5 Top Tips for Lowering Your Tax Burden

Colorado Property Owners: Don't Overpay Your Taxes, Here's How to Protest

If you're a Colorado property owner, you may have experienced the frustration of receiving a property tax bill that seems unfairly high. Early reports show some homeowners are facing as much as a 50+% hike in property taxes in one year! That's obviously a result of the rapid rise in property values experienced during the post-pandemic real estate boom of 2020-2022.

Fortunately, there are steps you can take to protest your property taxes and potentially lower your bill. In this blog post, we'll share some top tips for protesting property taxes in Colorado.

1. Understand the assessment process

The first step in protesting your property taxes is to understand how your property is assessed. In Colorado, property taxes are based on the assessed value of the property, which is determined by the county assessor's office. This value is then multiplied by the mill levy, or tax rate, to calculate the amount of tax you owe.

To determine the assessed value of your property, the assessor will consider factors such as the property's size, location, and condition, as well as recent sales of comparable properties in the area. It's important to review the assessor's records and make sure all of the information is accurate.

2. Gather evidence

To support your protest, you'll need to gather evidence that shows your property is overvalued. This could include recent appraisals, comparable sales in your area, and any physical defects or other issues that may affect the value of your property. In my opinion, your best bet is to protest on the basis of deteriorating condition, so if you've made a number of improvements, be prepared that your plight may fall on deaf ears with your county.

It's also important to document any changes to your property since the last assessment, such as renovations or repairs, as these may affect its value.

3. File a protest

To formally protest your property taxes, you'll need to file a protest with the county assessor's office. The window to file a protest for the 2023 tax year is May 1, 2023 through June 8, 2023. For the 2023 property value assessment, your property was valued as it existed on Jan. 1, 2023, so it's important to act quickly. You can learn more on your county assessor's website.

When filing your protest, be sure to include all of the evidence you've gathered to support your case. You can also request a hearing to present your case in person.

4. Consider mediation

If you're unable to reach a resolution with the assessor's office, you may be able to enter into mediation. Mediation is a process where a neutral third party helps you and the assessor's office come to an agreement on the value of your property.

Mediation can be a helpful option for resolving disputes, and it may be faster and less expensive than going to court.

5. Hire a professional

If you're still having trouble resolving your property tax dispute, you may want to consider hiring a professional. A tax attorney or property tax consultant can provide guidance and support throughout the process, and may be able to help you negotiate a lower tax bill.

However, it's important to be wary of scams or companies that promise to reduce your property taxes for a fee. Always do your research and make sure you're working with a reputable professional.

Protesting property taxes in Colorado can be a complex process, but it's worth the effort if you believe your tax bill is unfair. By understanding the assessment process, gathering evidence, filing a protest, considering mediation, and hiring a professional if needed, you can increase your chances of success and potentially lower your property tax bill.

Bottom Line

If I'm being honest, you may find yourself with an uphill battle arguing with the county that your home's value has not increased over the past couple of years. However, a more arguable stance may be to question if your property taxes have truly gone up as much as the county says they have. Keep in mind that since property values have gone up at record-breaking rates over the past couple of years, it's no surprise that property taxes have also seen historic increases. Hopefully lawmakers are able to come up with a stopgap solution. If they do, it will be the third year in a row that special bills have been passed to reduce your tax burden. An overtaxed population is an unhappy population and, well, the next elections are right around the corner.

FAQs

How are property taxes calculated? You'll want to read up on this one. Click to see how property taxes are calculated according to Colorado.gov website.

Can a real estate agent help me protest my tax bill? Yes, in that your agent may be able to provide relevant comparable properties that they might use to otherwise prove a home's value in a sale. You may want to inquire with your agent and strategize as to what properties would best serve your cause.

Update (May 5, 2023):

Wondering what's being done by lawmakers and State leaders to reduce Colorado property owners' tax burdens? Well, that remains to be seen, but here are three articles you may want to check out:

1. What the 10-year Colorado property tax proposal would mean for you
2. Governor, Democrats unveil 10-year plan to prevent Coloradans’ property taxes from rising too quickly
3. Colorado property tax relief plan taps into TABOR taxpayer refunds