America's Property Tax Advisor

Colorado Adjusts Assessment Ratios

BY ALEX MARTINEZ, DENVER, DECEMBER 2021

With the November 2021 defeat of Proposition 120, Colorado voters rejected a permanent reduction in the statewide tax assessment rate for several classes of property.

 

Meanwhile, Senate Bill 21-293, a legislative workaround signed by Governor Jared Polis in June, temporarily adjusts the assessment ratio for several classes of taxable properties including residential and multifamily residential.

 

Conflicting Tax Saving Estimates

 

Outcomes of these proposals differed widely. Proponents of Proposition 120 reported a potential property tax savings of $1 billion had the initiative been approved.

 

On the other hand, SB 21-293 estimates a property tax savings of $193.1 Million in 2022, payable 2023, and $209.5 Million in 2023, payable 2024, according to Colorado’s Legislative Council.

 

Revised Ratios

 

Revised Assessment Ratios for all taxable properties in Colorado are effective ONLY for 2022, payable 2023, and 2023, payable 2024 (See Chart).

 

Renewable Energy Property returns to 29% in 2024, payable 2025, Agricultural Nonresidential Property returns to 29% in 2024, payable 2025. Multifamily Residential and all other Residential Property return to 7.15% in 2024, payable 2025.

 

Property is classified according to its use on January 1, the assessment date of each year. The assessment rate and the approach to value used to value the property is based upon its classification. Once the property is classified for property tax purposes, it remains classified as such until the actual use changes or the taxing authority discovers that the classification is erroneous.

 

SB 21-293 Assessment Ratios:
(2022 & 2023 ONLY)

 

Multifamily Residential
(Including Duplexes, Triplexes & Apartments)

6.80%

 

Residential Property
(All other, i.e. Single Family)

6.95%

 

Agricultural Nonresidential

26.40%

 

Nonresidential Property Used to Produce
Renewable Energy

26.40%

 

Nonresidential Commerical Property
(Including Hotels, Motels, and B&B's)

29%

 

Commerical, Industrial & Vacant Land

29%

 

Oil and Gas

87.50%

 

Personal Property

29%

 

Natural Resources

29%

 

State Assessed

29%