Page 5 - November 2019 proof 7 Castle Pines Connection

CastlePinesConnection.com 5 Property tax surprises in store for Douglas County
By Bryan Goodland
As they say, taxes are inevitable, but this year Douglas County residents may be taken aback by what comes in the mail. Castle Pines homeowners may see an increase on their January 2020 property tax bills.
Douglas County Assessor Lisa Frizell said, “What I need residents to understand is that their tax bill may surprise them.” Frizell is referring to the property taxes that Douglas County residents will pay next year.
The bills re ect the taxes from the previous year, in this case 2018. To determine
the property taxes that residents pay, a mathematical formula is utilized. The
actual value of the home is multiplied by the assessment rate, which results in the assessed value. Next, the home’s assessed value is multiplied by any mill levies, resulting in the property taxes that the homeowner will pay.
Let’s break down where all these numbers are coming from. The rst part of the equation
is the actual value of the home. This is determined by the O ce of the County Assessor. Frizell explained that the data is gathered over a 24 month period of time. In preparation, on May 1 of this year, residents received a postcard in the mail with their property value listed.
For the 2018 valuations, the assessor’s o ce looked at sales data from July 1, 2016 to June 30, 2018. During that time frame, the median sales price for a single family home
in Douglas County went from $442,500 to $509,000. The value of a home is determined by comparing similar homes in a designated area and the price of each home sale. Frizell said, “All assessors are held to an audit standard on their evaluations.” In other words, everything has multiple checks and balances for accuracy.
The assessment rate is set by the State of Colorado. While it was predicted that this rate would go down, it did not. The success in various industries, as well as the e ect
of the Gallagher Amendment, played a part in the rate determination. The amendment, passed in 1982, sought to balance out the percentage of tax that homeowners would be burdened with in relation to other industries, which include residential, commercial and oil and gas. In essence, if home values increase faster than the values of these other entities, the assessment rate would trend down.
Once the assessor’s o ce determines the actual value, that number is multiplied by the state’s assessment rate and the assessed value of the home is determined. The next stage
of the equation is where things start to get complicated.
The assessed value is multiplied by the mill levies for a designated area. Mill levies can uctuate based on location and what the various entities determined for their budgets. The mill levy is the tax rate applied to the property and it is based on what taxing entities
or authorities exist in the area. For instance, a mill levy could consist of portions from
a metro district, county, school district and services like re and law enforcement. Each entity accounts for a certain percentage of the overall mill levy taxes.
Residents do have a voice when it comes to mill levies and the subsequent tax rates. Frizell said, “Attend a budget hearing and tell the board to lower their mill levies.”
Housing prices have steadily increased in value in Douglas County, along with other counties throughout the state. Business
has also been thriving in Colorado, which translates to more money for the taxing authorities. This also adds to the tax pressure put on property owners. Frizell said, “The fact that your investment is doing well shouldn’t be a windfall for other entities.”
Homeowners do have opportunities throughout the year to challenge all these numbers. One of the last resort options left for homeowners to contest next year’s bill is abatement. This is a fairly lengthy process and refunds, if issued, can take six months to receive. Frizell said, “No one should pay a penny over their fair share.”
Homeowners can check their home values and the various taxing entities by visiting the Douglas County Assessor’s O ce website at www.douglas.co.us/assessor#/.