Commercial Properties Will Pay More Tax
Commercial property owners will continue to pay more in taxes even though the residential assessment ratio will not be drastically lowered. The change still tips the scales to charge higher taxes on commercial property owners.
The Colorado Department of Local Affairs announced earlier this year that the residential assessment ratio was expected to fall from 7.96% to 6.56%. Tax officials now say they recommended a steeper cut than was necessary. The new projection is 7.2%.
Local Officials Relieved
Local government representatives say the revised assessment ratio should free up an extra $62 million dollars, or more depending on property values from district-to-district.
The Gallagher Amendment to the Colorado constitution mandates that residentially classified properties pay approximately 45% of total property taxes and properties classified as commercial pay approximately 55%. To preserve this balance, the residential assessment ratio is being revised for 2017, which will affect RE taxes paid in 2018.
The change in the assessment rate requires legislation. If approved by lawmakers, it could also give the state more flexibility to help balance its $26.8 billion budget.
Property Owners Should Take Action
The best defense against rising taxes is making sure your assessed value is fair and accurate. Proactive appeals can make a substantial impact on your bottom line.
Please contact us with any questions or concerns about your company's property tax exposure.