Page 8
— Property Management Quarterly — January 2018
www.crej.comTaxes
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P
roperty taxes can be
one of the biggest
line-item expenses
commercial prop-
erty owners face.
It’s important for property
owners to understand each
state’s specific rules and
regulations surrounding
property taxes, as they vary
across the country. When
it comes to Colorado, there
are some key differences of
which commercial property
owners need to be aware.
•
Colorado’s property valu-
ation cycle.
Colorado main-
tains a two-year valuation
cycle. All real property is
reappraised every two years
on the odd-numbered year.
Notice of Valuation letters
are mailed to property own-
ers every year on or before
May 1. The actual value and
classification listed on the
Notice of Valuation in 2017
will be the same for 2018.
Commercial valuations are
based on cost, market and
income data during the
18-month
period
prior to the
reappraisal.
For exam-
ple, 2017-
2018 values
are based
on cost,
sales and
lease data
between
Jan. 1, 2015,
and June
30, 2016.
In addi-
tion, Colorado utilizes a
split tax roll. The assess-
ment ratio for commercial
properties is fixed at 29
percent while the residen-
tial assessment ratio can
vary. It currently is 7.2 per-
cent. Because businesses
bear a much greater prop-
erty tax burden, it is crucial
for commercial real estate
owners to ensure the valu-
ation of their property is
correct.
•
How to file a property
tax appeal.
A property tax
protest essentially is an
evidence-based argument
as to why a property’s
assigned actual value is
incorrect and includes
proof that a reduction to
the actual value is warrant-
ed. If owners chose to file
a protest themselves, rel-
evant forms and deadlines
can be found on the county
assessor’s website. How-
ever, property tax appeals
can be a complicated pro-
cess, so many commercial
property owners choose
to hire consulting firm to
handle their appeals. When
presenting your case for
a property tax appeal, the
more in-depth knowledge
and evidence presented
during the appeals process,
the better.
•
Colorado’s appeal process
and deadlines.
Colorado has
a three-tiered system for
property tax appeals. If a
property owner disagrees
with the actual value or
classification placed on his
property, the first step is
to file a protest with the
county assessor. The pro-
test must be received by
June 1. The county asses-
sor’s office reviews the
protest and will send a
Notice of Determination by
the end of June or August,
depending on the county. If
the assessor denies the pro-
test or the property owner
Tips to help lower your commercial property taxesBeth Diehl
Managing
consultant,
Paradigm Tax
Group, Centennial
Because businesses bear a much
greater property tax burden, it is
crucial for commercial real estate
owners to ensure the valuation of
their property is correct.
Please see Diehl, Page 26