It is the end of the year, 2017. The county Treasurer’s office is busy with phone calls and emails from taxpayers. There are many “balls in the air” right now in determining just what your property tax will be next year. This is why there is an increased number of inquiries, so let me explain.
First, there is the Gallagher Amendment, which determines the percentage of property taxes paid by residential properties verses commercial properties. As the valuations of residential properties have increased so much on the Front Range, our state legislators reduced the residential assessment ratio to 7.2 percent (down from 7.9). This is good news for residential property owners: it means your taxes will go down. This is bad news for La Plata County government entities and the services you receive from them: It means there will be less money with which to provide services. This is why the Durango Fire Protection District asked residents in the district for a mill levy increase (more on this later).
Next, 2017 was a reassessment year. The Assessor’s Office revalued all properties. Traditionally, real properties increase in value, and they did. This means your property taxes will increase next year. Will they increase by the same amount of the Gallagher Amendment decrease? It depends. Some will, some won’t.
Third, the fire district won the “popular vote” in November’s election and gets to increase their mill levy for those in their district. This means some property owners will have their taxes increased, others won’t. This is analogous to the Bayfield school bond mill levy vote of last year. Bayfield residents experienced their property taxes increase significantly because that vote passed by a majority.
Fourth, other taxing entities may have increased their mill levies throughout the year. There are over 50 of these organizations throughout La Plata County. Those people who receive services from these organizations are allowed to vote on their own mill levies, and have been offered that opportunity by these organizations. The Taxpayer Bill of Rights (TABOR) requires this.
Right now, the Assessor is busy putting all of these data together to create a tax roll. That will then be certified by the Board of County Commissioners in late December. That will then get a final processing check (with a little Christmas magic dust sprinkled in for big number mathematical rounding) which must be delivered to the Treasurer by Jan. 10, 2018.
So what does this mean, practically speaking? It means that until Jan. 10, all property tax estimates are just that: estimates. Why is this important to know? Because life goes on, regardless of the tax cycle. People buy and sell homes, pay off mortgages and plan for income tax deductions. People are nervous that the Trump administration will take away their property tax deduction. For all these reasons, I am getting many phone calls and emails.
Yes, you may pre-pay your property taxes this December for your taxes that will be due and payable in January of 2018. (No, you cannot pre-pay your 2019 or 2020 taxes!) And I can only provide an estimate of what your taxes will be next year. As such, call us.
However, this office will charge an additional 10 percent on top of that estimate. Why? Because it is easier for me, and cheaper for county government, to send you a refund check for an over-payment, than it is for me to try to collect on an underpayment from you.
Next steps? All property owners will receive a tax statement in late January. This will inform you as to what your 2017 taxes are. Yes, taxes are paid in arrears: you pay 2017 taxes in 2018. Keep this statement for your records. If you have an escrow account with your mortgage, it will be paid through that mechanism. If your property is paid for, please pay your taxes on-line! Using e-check technology there is no additional cost to you or to the county. There is a charge of 2.19 percent if you use a credit or debit card. That money goes to the credit and debit card provider, not to the county.
If you have any questions about your property taxes, please call us. Everyone in the Treasurer’s office is here to serve you.
Allison Aichele is La Plata County treasurer. Reach her at Allison.Aichele@co.laplata.co.us and staff at 382-6350.
