Le Lézard
Classified in: Business
Subjects: LEG, ECO

Colorado Property Tax Alert: Residential Assessment Ratio Change


DALLAS, April 26, 2017 /PRNewswire/ -- Colorado counties reassess property values every odd number year at "market value," which is technically called "actual value" and will remain the same in the even number year known as the intervening year. This is true unless there are physical changes to the improvements as of January 1st (lien date) of the relevant year. Values are published each year on May 1st with a value appeal deadline on June 1st

In Colorado, there are different assessment ratios for commercial property (29%) and for residential property (7.96%). The commercial ratio is a constant, at 29%, as set in the Colorado Constitution; however, in 1982, Colorado voters determined that 55% of all property tax revenue collected statewide should be paid by commercial property owners, and the remaining 45% should be paid by residential property owners. (This amendment to the state constitution is called the Gallagher Amendment.)

Due to this requirement of the 55%?45% split, the residential assessment ratio must be adjusted each reassessment cycle, and in 2017, the Colorado Division of Property Taxation (DPT) issued a preliminary study indicating that the new residential assessment ratio will be 6.56%. However, adjusting the calculation for the oil and gas value contribution, the final residential assessment ratio has been set at 7.20% which equates to a 9.5% reduction in the ratio. This drop in the ratio is due to the amount of residential value increases relative to the amount of commercial value increases throughout the state of Colorado.

We are expecting the Colorado Legislature to approve this adjustment and place it in statute for the 2017 and 2018 tax years. This reduction in assessment ratio of approximately 9.5% (assuming a 7.2% assessment ratio) will offset the expected large increases in value for both multi-family owners (including senior living facilities) as well as single-family residential owners.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.

TECHNICAL INFORMATION CONTACTS:

Matthew W. Poling
Principal
Ryan
720.524.0022
[email protected]

Ian James
Director
Ryan
720.524.0022
[email protected]

Ethan Horn
Manager
Ryan
720.524.0022
[email protected]

SOURCE Ryan


These press releases may also interest you

at 05:51
On March 21, AAC Technologies (2018.HK) held its 2023 Annual Results Press Conference in Hong Kong. In 2023, the Group recorded a...

at 05:49
Max Stock Limited (the "Company") today announced a share purchase by a company jointly owned by one of the Company's directors, as follows: Entity which performed the transaction Relationship to Company's senior officers Date of transaction...

at 05:40
Keep Inc. ("Keep" or the "Company"), the largest online fitness platform in China, today announced its audited annual results for the year ended December 31, 2023. Full Year 2023 Financial Highlights Total revenues were RMB2,137.8 million in 2023, a...

at 05:30
BrightPoint (BP) LLC, an 8(a) joint venture between Buchanan & Edwards (BE) and i3, is pleased to announce its successful bid for a position on the U.S. Department of Commerce's Commerce Acquisition for Transformational Technology Services (CATTS)...

at 05:30
The "High Net Worth (Hnw) Asset Allocation Trends 2024" report has been added to  ResearchAndMarkets.com's offering. Drawing on our 2023 Global Wealth Managers Survey, this report analyzes HNW asset allocation strategies in 24 key markets. In...

at 05:30
FinVolution Group ("FinVolution," or the "Company") , a leading fintech platform, today announced that its Philippines financial application, Juanhand, has entered into a strategic cooperation agreement with SeaBank Philippines Bank ("SeaBank"), an...



News published on and distributed by: