Protests Down From Previous Years; Seller’s Market to Continue
Many locals have been shocked by the sticker price escalation of their recent property assessments, which will play a big role in the future taxes they pay
The good news: It could have been worse.
According to The Tax Foundation study which was based on median property taxes paid within counties in 2018, based on five-year estimates, New York’s Nassau, Rockland, and Westchester counties paid the highest property tax in the country. (as much as $10,000 per year)
According to Tax-Rates.org, The median property tax in Colorado is $1,437 per year for a home worth the median value of $237,800. Colorado is ranked 36th of the 50 states for property taxes as a percentage of median income.
The exact property tax levied depends on the county in Colorado. Douglas County collects the highest property tax in Colorado, levying an average of $2,590 yearly in property taxes, while Costilla County has the lowest property tax in the state, collecting an average tax of $317 per year.
Tax-Rates.org state, the median property tax in Teller County, Colorado is $1,196 per year for a home worth the median value of $226,000. Teller County collects, on average, 0.53-percent of a property’s assessed fair market value as property tax.
The average yearly property tax paid by Teller County residents amounts to about 1.86 percent of their yearly income.
Property Values Expected to Skyrocket
The bad news: The trend of people moving to Colorado isn’t likely to go down anytime soon. That means the law of supply and demand will keep property values increasing.
Over the last several years, the Front Range area of Colorado has seen a massive influx of people moving to the area. According to several studies, the Denver/Colorado Springs area has been rated among the top three places to live in the country. These studies are the driving market force behind the increase in property sales prices, which continue to skyrocket. An article in The (Colorado Springs) Gazette, dated December 6, 2018, stated, “The Springs has made the Realtor.com ‘hottest markets’ list several times in recent months, as the area’s surging economy and job growth have heightened the demand for housing. That has led to strong home sales and rising prices.”
Since the last census, El Paso County’s population has increased by 17.55-percent. According to Bestplaces.net, from 1990-present, Teller county population has grown by 90.7-percent.
Available residential real estate has not kept pace with this growth. Real estate in the county is currently a seller’s market.
Looking closer at Teller county home sales and property tax increases, there is some surprising data. For instance, Cripple Creek had 20 home sales from 2019-2020, according to Teller County Assessor Colt Simmons. In 2018 the median sale price was $147,775. In 2020 the median sale price was $179,000, a value change of 23.15-percent.
Victor saw similar value increases. Of 34 home sales in 2020, Victor home sale values increased by 28.47-percent. The median home sale value rose by $15,300 in Victor from 2018-2020.
Simmons supplied data on sale prices on some of the other areas as well. In Woodland Park’s Sunnywood subdivision, for example, the median sale price in June of 2016 was $288,919, but by June of 2018, it rose to $379,964. This compared to data from previous years, represented a rise in the value of 30.68 percent.
In Cripple Creek, the numbers demonstrated a somewhat less of a hike. The median sale price in June of 2016 was $112,500, but jumped to $147,775 in 2018, representing an increase of 26 percent.
Simmons noted that as compared to the 2019 revaluation, protests filed this year have falling by close to 75 percent. Simmons attributes the decline in protests to the understanding by residents that his office is being transparent, and dead on in the value changes.
One way to lower your property tax burden is a program that is available to seniors and disabled veterans who meet certain qualifications. For seniors, an exemption of up to 50 percent of the first $200,000 of actual value can be had. To qualify you must be 65 years of age on January 1 of the year in which you apply; you must have owned the property for at least 10 consecutive years prior to January 1, and you must occupy the property as your primary residence for at least 10 consecutive years prior to January 1. The caveat to this exemption is that the state legislature must fund the exemption every year.