The state’s preliminary findings on anticipated residential property tax assessment rates for Colorado counties in 2018 show La Plata County could lose up to $1 million.
The study is based on current estimates of property values provided by Colorado counties.
An earlier projection by the Colorado Legislative Council estimated the 2018 residential assessment rate around 6.85 percent, which would mean an $800,000 loss in property tax revenue for La Plata County.
But estimates released Friday by the Colorado Department of Local Affairs’ Division of Property Taxation suggest next year’s rate could be even lower at 6.56 percent.
“Hopefully, it doesn’t drop further,” La Plata County Assessor Craig Larson wrote in an email. “The new lower estimated residential assessment rate will move the loss up close to $1 million for La Plata County government.”
Residential assessment ratios (the percentage of taxable property value) are adjusted every two years under the 1982 Gallagher Amendment, which requires the state to lower the assessment rate for Colorado homes when residential values are increasing faster than non-residential property values.
The result is a tax break for homeowners and a hit to local government budgets.
The ratio has been a stagnant 7.96 percent since 2003, but the oil and gas bust coupled with rising home values are forcing the rate down.
According to the latest state analysis, La Plata County home values could rise about 8 percent in the next year, and as much as 28.4 percent in Jefferson County, 25.6 percent in Adams County and 23.4 percent in Boulder County.
Estimates are just that, however. The final rate will not be determined until April when the reappraisal process is complete.
jpace@durangoherald.com
Residential Rate Projections (PDF)
