Assessment process

The assessment process is the basis for generating property tax revenues that pay for schools, roads, fire protection, police protection, and other local services. All of the revenue generated by property taxes stays within the county. Property taxes do not support any state services.

The Boulder County Assessor is responsible for discovering, listing, and valuing all property within Boulder County, and must follow state laws when meeting these responsibilities. The Assessor's goal is equalization of property values, which causes the burden of taxes to be distributed fairly and equitably between property owners. Every two odd numbered years, all properties in Colorado, including Boulder County, are reappraised.

As a property owner and taxpayer, you have specific rights, remedies, and responsibilities in the assessment process. You have the right to examine the Assessor's property records. If you disagree with your property value, you may file an appeal with the Assessor. You have the responsibility to provide accurate information to the Assessor about property you own, and to participate in budget hearings held by school boards, cities and towns, and special districts which levy taxes on your property.

The Assessor is required to notify you of your value each year for real property. The notice describes the property you own, gives the actual value for both the prior and current year, and provides an opportunity for you to present your objection to the Assessor. The deadlines for appeal are statutory and enforced. For those properties not changing in value during the intervening year, the value listed on your tax bill received in January is the Assessor's notification of value for the coming year.

When you receive a Notice of Valuation, study it carefully! The value shown on the notice will affect the amount of taxes you will pay next January. The deadlines for appeal are statutory and enforced.

If you feel the value the Assessor has placed on your property is incorrect, you may wish to inspect the Assessor's records on your property and other properties. Records on land and buildings are public information, and you have the right to examine them.

If you feel the value the Assessor has placed on your property is incorrect, you may wish to file an appeal. Step by step procedures for filing an appeal are located in the Assessment Appeals area of this web site.

The assessment process involves discovering and listing information about properties and determining property values. It also involves analyzing the values to ensure they meet the standards of fair assessment, and certifying the assessment roll to the appropriate taxing authorities. To ensure equalization, the Assessor must determine residential property values by using only appropriate market information. Values for most other properties are determined from relevant cost, market, and income data.

The first step in the assessment process is to gather information on ownership, location, use, sales, building measurements, construction type, construction costs, and rental income. Primary sources for this information are real property deeds and declarations, subdivision maps, building permits, and local building contractors. Other primary sources are declarations filed by owners of taxable personal property and appraisers who conduct on-site inspections to gather land and building characteristics.

The Assessor stores, updates and maintains this information for current and future use in the assessment process.

Real property (land and buildings) is reappraised by the Assessor's office every odd numbered year. The value determined by the Assessor for the year of reappraisal is generally used for the intervening year also. The actual value of real property is based on its value as of the appraisal date, which is June 30th of the year prior to the reappraisal year.

A property's value may alter over time due to physical changes, such as new rooms finished in the basement or extensive remodeling and modernization. Changes made to maintain your property's current value, such as painting your home, replacing your roof or making repairs would not necessarily increase the value of the property. But, if these tasks were not performed, the condition of the home would deteriorate which could adversely affect the value.

Residential properties, by law, must be valued solely by the market approach, using comparable verified sales from the study period. Click on the link for more detailed information on Time Trending, used in the valuation of residential properties.

The market approach is the most direct method of appraisal. Market value is the most probable price, expressed in terms of money, that a property would bring if exposed for sale in the open market in an arm's length transaction between a willing seller and willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted and for which it is capable of being used.

The three approaches for appraising property are the cost approach, the income approach, and the market approach. To appraise property using these methods, the Assessor and staff must review information gathered on individual properties, know what similar properties are selling for, and how much it would cost for replacement. Other factors that influence value may be location, availability of services, and rental rates.

The market approach

The market approach is the most direct method of appraisal. Market value is the most probable price, expressed in terms of money, that a property would bring if exposed for sale in the open market in an arm's length transaction between a willing seller and willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted and for which it is capable of being used.

The cost approach

The cost approach estimates the material and labor costs to replace a building with a similar one. If the building is not new, the appraisal must consider its age and how much it has depreciated over time.

The income approach

The income approach may be considered for income producing properties such as stores, office buildings, and warehouses. This method considers the landlord's income and operating expenses, and the financial return most people would expect from a given type of investment property.

After properties have been appraised, the values are analyzed to ensure accurate and equitable assessments. Colorado law requires all Assessors to value property at a specific level and within certain uniformity standards. This provides equity in distribution of state school funding, local tax burden, and assessments that cross county lines.

To ensure proper levels and uniformity standards are being followed by the Assessor, an independent auditor, contracted by the Legislative Council, conducts an annual 1% study of all property in each county. Findings of the annual study are reported to the State Board of Equalization each year.

These figures are used by the Taxing Authorities to determine their mill levies. If there is any change in the assessed value due to Board of Assessment Appeal decisions, abatements or any other reason, these values are re-certified to the affected Taxing Authorities in early December to get them the most current figures for their calculations. See How property taxes are determined for further information on determining mill levies and figuring property taxes.