Are Colorado Property Taxes Increasing? - Yes!
Colorado residents need to understand the potential changes that may be coming to property taxes in the state. Unfortunately, it's not good news - experts predict that property taxes will rise in 2024 in Colorado, and homeowners should be prepared for the impact this could have on their budgets.
So why are property taxes expected to rise in Colorado? A few factors are at play, including increased property values and state and local tax laws changes.
One of the biggest drivers of rising property taxes is the increasing value of homes in many parts of the state. When property values go up, so do property taxes - it's a simple equation. And in Colorado, home values have increased for several years.
In addition to rising home values, changes to state and local tax laws are also expected to impact property taxes in Colorado. For example, in 2017, the federal government passed a tax reform bill that placed a cap on state and local taxes (including property taxes) that can be deducted from federal income taxes.
This means that homeowners in high-tax states like Colorado will no longer be able to deduct as much from their federal taxes as they could in the past, which could result in higher tax bills overall.
So what can Colorado homeowners do to prepare for these potential changes? Here are a few tips:
Understand your current property tax bill: Look closely at it and understand how it's calculated. This will help you understand how potential changes could impact your bill.
Stay informed: Keep an eye on local news and tax policy changes that could impact property taxes in Colorado. Stay informed so you can plan accordingly.
Plan for the future: If you're currently house hunting or planning to buy a home soon, be sure to factor potential property tax increases into your budget.
Appeal your assessment: If you think your property tax bill is too high, you may be able to appeal your assessment. Working with me, I can help provide comparable sales that might be more accurate. Then you can fill out the assessor's form and turn it in. The assessor can still decide that the rate assigned is fair, but we recommend filing a challenge if you believe the new assessed amount is inaccurate.
Overall, rising property taxes in Colorado are a reality for which homeowners should be prepared in 2024. By understanding the factors at play and planning accordingly, you can mitigate the impact on your budget and ensure you're financially prepared for the years ahead.
