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Frequently Asked Tax Protest Questions
How is your property value determined?For the 2007 appraisals, the actual value assigned to vacant land, residential and commercial properties is based on sales and other market data from January 1, 2005 through June 30, 2006. This data gathering period is prescribed by Colorado statutes. In situations where there are insufficient sales, data from July 1, 2001 through June 30, 2006 may be utilized. All sales or market data is adjusted for time to the June 30, 2006 appraisal date. Values are determined utilizing the Sales Comparison Approach, which
compares your property with properties that are similar in location, design,
size, age, and amenities. For non-residential property, the cost and the
income approaches to value are also considered.
What should I do if I disagree with the value?Colorado Statutes identify the month of May as the time for you to contact your County Assessor concerning your valuation. You may protest in person or by mail. If you protest by mail, it must be postmarked by June 1. 2007. If you appoint an agent to act on your behalf, that person needs your written authorization. Please keep in mind that you should provide information to support your estimate of value if it differs from that estimated by the Assessor's office. The Assessors office will only consider appeals for the valuation of the property, not the amount of taxes you pay. For professional assistance handling your protest, Order
a Property Tax Appraisal from Pack Appraisal
Company.
I'm not sure if I should appeal or not. How can I find
out the sales prices of
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| Vacant Land: Residential: Commercial: Industrial: Agricultural: Agricultural Residence: Mobile Homes: Personal Property: Oil & Gas: |
29% 7.96% (Note: residential property must have a residence present) 29% 29% 29% (Note: Property is valued as Agricultural property as opposed to Residential property, usually resulting in a lower actual value and tax basis.) 9.15% 9.15% (if used as a residence) 29% 87.5 % of production value if primary well; 75% of production value if secondary well |
Only the residential assessment rate may be adjusted by the Colorado
Legislature. The residential rate is set every two years, during the year
of reappraisal.
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The following formula is used to calculate the dollar amount of taxes due:
Actual Value X Assessment Rate X Mill levy = Property Taxes Due
The actual value of each property in Eagle County is estimated by the Assessor's Office.
The mill levies are set each year by the taxing authorities that benefit from the taxes:
School districts
Eagle County
Cities and towns
Fire, water and sanitation districts
Other special districts
The districts, which levy taxes on your property, are listed on your
tax bill.
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No. The TABOR Amendment (Amendment I of 1992) controls the amount that
state and local governments can collect and spend. It does not limit the
rate
of increase of an individual tax bill.
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Some people believe the previous (2005) values are simply multiplied
by an inflation
factor, but in a reappraisal, all the data from the relevant time frame
(January 1, 2005 through June 30, 2006) is considered. This data is analyzed
using mass appraisal techniques to reflect the increased, stable, or decreased
values of county properties.
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The Eagle County Assessors office has a very difficult task. They must assign values to more than 30,000 properties. And, the diverse array of properties in the county increases the complexity of this task. The Eagle County Assessors office includes an experienced and professional staff. They employ competent technological systems and utilize accepted appraisal methodologies, fully complying with state regulations. In most situations, the values assigned to county properties are quite reasonable.
However, the time constraints involved in valuing such a large number of unique properties necessitates the use of Mass Appraisal techniques. Mass appraisal methodology involves the use of regression analysis. This methodology often does not properly account for meaningful differences in value, such as views, locations, renovation of properties, and unique appeal characteristics. When the sales data from a neighborhood is diverse, mass appraisal methodology can easily result in inappropriate valuations to many properties.
This is the reason why mortgage lenders and banks do not accept the county
assessed valuations when making real estate loans and mortgages. Assessed
valuations just do not provide the level of accuracy required to secure
the lenders interests in lending situations.
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The reliability of Mass Appraisal methodology is directly dependent on the:
Similarity of Comparable Sales Data: It is important to remember that the greater the number of differences between a property and a comparable sale, the greater the chance of making an error in quantifying the market adjustment for that difference. Therefore, if the sales data utilized to value your property differs substantially, there is a stronger likelihood of an unjust valuation being assigned to your property.
Properties within the same neighborhood and market segment can vary significantly in size, quality, effective age, and views. The effective sales price can be significantly influenced by concessions and personal property such as furnishings and club memberships. Furthermore, these markets are sometimes volatile with the actions of motivated buyers and sellers sometimes skewing sales data.
Accuracy of Subject & Comparable Sales Data: Keep in mind that no matter what appraisal methodology is utilized, its reliability is directly related to the reliability of the data for each Subject Property and the Comparable Sales utilized to estimate value. Unfortunately, there are many errors in the County data. Errors are made in characterizing properties. Properties change, and the county staff is unaware of the changes. Sellers do not fill out the Transfer Declaration forms correctly, resulting in inappropriate Effective Sales Prices of comparable sales.
Through research, these errors may be rectified, resulting in successful
tax protests that save taxpayers significant sums of money. The appraisal
staff of Pack Appraisal Company is prepared to perform research to detect
these errors.
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An alternative to the mass appraisal process is the more accurate direct
comparison of properties utilizing the Sales Comparison Approach. It is
the methodology which is primarily utilized by appraisers in the preparation
of appraisals for mortgage lending situations. This approach utilizes
a direct comparison of your property to the most similar comparable sales
to provide an opinion of value. Pack Appraisal Company utilizes the Sales
Comparison Approach in the preparation of tax appeals for our clients.
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Three main reasons: Human error, subjective judgment, and changes to
the property since it was last quantified by the county assessor's staff.
The county appraiser staff has to quantify and value more than 30,000
properties. On the whole, the county staff does good work. But, errors
can be made in measuring the various areas and components of your property.
Errors can be made in the assignment of the quality rating of your home,
or changes to your property may not have been taken into account.
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Most people have no idea how to determine if they are being overcharged.
The property taxing authorities do not want you to be curious about the
value they place on your house and property. They do not have the time
or manpower to establish accurate assessment figures. And, since less
than 1 percent of the national population typically appeal their taxes,
why should they bother? Equalization or equal treatment is very difficult,
so you have to check for overcharges yourself. The Property Tax Bill offers
the greatest potential savings of the expenses your property incurs.
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There are three (3) main stages involved in the process of appealing your assessed valuation.
1st Stage Protest: Your initial appeal is directed to the Eagle County Assessor's office. The Eagle County Assessor's office will provide a written response to the taxpayer by the last working day of June 2007.
2nd Stage Protest: If you are not satisfied with the assessor's decision, a written appeal must be filed with the County Board of Equalization (CBOE). The appeal must be postmarked or delivered on or before July 15, 2007. You will be notified of a hearing date to present your appeal to hearing officers of the CBOE.
3rd Stage Protest: The CBOE's decision will be issued no later than August 10, 2007. If you are not satisfied with the decision, an appeal must be submitted to one of the following:
- District Court,
- Board of Assessment Appeals, or
- A request for Arbitration with the County Commissioners. The appeal must be submitted in writing no later than thirty (30) days after the CBOE's decision is mailed. The Board is required to give at least 30 days notice prior to the hearing; however, a notice of hearing is usually mailed 45 to 60 days prior to the scheduled hearing date.
If you disagree with the decision of the District Court or the Board
of Assessment Appeals, you have the right to appeal this decision to the
Court of Appeals for judicial review within 45 days from the date of the
Board's decision. Decisions of Arbitration with the County Commissioners
are final.
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Yes, however, this is very rare. Increases in value usually occur when
the county finds an error in quantifying the size or quality of your property.
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Yes. To avoid penalties and interest, all taxes must be paid by the delinquency
data. You will receive a refund if an appeal is later settled in your
favor.
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You may request the county appraisal staff to perform a field check of
your property. Or, for additional fees, you may request the appraisal
staff of Pack Appraisal Company to perform an on-site inspection to determine
the accuracy of the county data.
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The advantage of hiring us is you have a full-time professional armed with vast databases and extensive experience valuing residential properties in Eagle County. We have extensive experience handling tax appeals and understand the property tax protest process.
Many private parties handle their own property tax protests. However,
a significant amount of time is required to prepare a successful tax protest.
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