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Why did my taxes payable in 2022 go up so much?!?


This is a pretty loaded question but the primary factor affecting your taxes is your home's market value, as assigned by the Assessor's office on the June 30th appraisal date. As mentioned in the previous blog post, properties in Colorado are revalued for tax purposes every other year in the odd-numbered years using the market approach to value. Since property taxes are paid in arrears, that means each even-numbered year the tax amount can change. There could be an increase or decrease depending on market conditions at the time of the June 30th appraisal date. So let's be real here. Unless you've been living under a rock, you are aware that the real estate market post-Covid has been hotter than ever.


There are also government and local forces that influence, not just the value of your home, but also the rate at which your home is taxed. Such was the case in 2021 when voters in the Summit Fire and EMS Fire Protection District voted to approve a property tax increase to support the organization's efforts. Additionally, in 2020 Colorado voters approved repealing the Gallagher Amendment which was the state's floating residential assessment rate. This froze the residential assessment rate at 7.15% with no indication of a replacement plan.

When and why was the Gallagher Amendment passed?

What exactly did the Gallagher Amendment do?

Why did the voters repeal a measure that saved them money on property taxes?

 

To summarize, the interplay of the 2021 reappraisal and recent voter approved initiatives caused property taxes due in 2022 to increase more than what you've seen in the past. This is an example of what we call in appraisal the four forces that influence value:

1. Physical and Environmental Characteristics

This includes the quality of conveniences; availability of schools, shopping, public transportation; as well as barriers to future development (build-out) which is pertinent here in the mountains.

2. Economic Influences

3. Political or Government Regulations

4. Social Ideals and Standards


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