Understanding Property Values for Assessment Purposes
Colorado law requires Assessors to reappraise all real property, including land and improvements, every two years in odd-numbered years. Assessors are required to recognize the trends or market changes over that time and adjust all sales to the appraisal date, 39-1-104 C.R.S.
Per State Statute, the Assessor is required to gather and confirm sales within the eighteen-month period ending on June 30 of the year prior to a re-appraisal year, time adjusting each sale to the June 30 ending date. The data-gathering period is referred to as the Sales Study Period. Assessors are permitted to extend the study period back in time in six-month increments, and for the 2023/2024 reappraisal, Larimer County is using 24 months of data for residential property from July 1, 2020 to June 30, 2022. All sales are trended to the end of the data collection period.
Therefore, the actual value assigned to residential properties in 2023 and 2024 is based on market values as of June 30, 2022, as defined by sales of residential property in the 24-month period.
Vacant and Commercial Property
For vacant or commercial property, the county uses 60 months of data. This period extends from July 1, 2017 through June 30, 2022. The appraisal data used to establish real property value was from at least the 18-month period ending June 30, 2022 and up to 60 months prior to that date as necessary. Market (sales) information for the entire 60-month period is available here.
Impacts on Residential Values
Each property in the county has a set of characteristics that are used by the model. Examples of characteristics include location, living area square footage, basement square footage (finished and non), style, quality, garage square footage, lot features, etc. These variables may be reviewed on sold properties used in the model to estimate value of the properties. The model is then applied to both sold and unsold properties. See Impacts to Residential Values for more information.
The Assessor's Office uses exterior measurements of homes and buildings. This may cause the Assessor's estimate of square footage to differ from that estimated by the builder or realtor since they frequently use interior measurements. The valuation procedures used by the Assessor are adjusted to account for the use of exterior measurements, which helps to assure equitable values.
Property Value and Property Tax
Your property's value is an important figure in the property tax equation, and a different value and/or classification can affect your property taxes. A property protest is not an appeal of how much you pay in taxes. The level of taxation is determined by taxing authorities, not the Assessor. Questions about the level of taxation should be directed to the taxing authorities. You may appeal your property's actual value and/or classification to the Assessor. Understanding Property Taxes in Colorado
Much of what your county assessor does is mandated at the state level, and the Colorado Department of Property Taxation works with your state legislative committees to help develop the Assessors' Reference Library (ARL), a series of three manuals and a statutory index that addresses Colorado property assessment.
