Frequently Asked Questions about Real Property Valuation

How is my property value determined?

The actual value assigned to residential properties based on sales that occurred in the eighteen-month period from January 1, 2007 to June 30, 2008. Those sales indicate the market conditions in various parts of Mesa County, and the market value of specific types of properties. Five years of sales activity are analyzed for those types of properties that are few in number or of an unusual nature.

For most nonresidential property, we consider comparable sales information, construction costs, depreciation, and the income approach to value.

How are property taxes calculated?

Actual Value X Assessment Rate X

Mill Levy = Property Taxes

The assessment rate on residential properties in 2009 is estimated at 7.96%. The assessment rate on nonresidential properties is fixed by law at 29%. Based on a hypothetical mill levy of 88, each $1,000 of actual value on a residence using 7.96% as the assessment rate equates to $7.00 in property tax. Each $1,000 of actual value on a nonresidential property equates to $25.52 in property tax.

Who sets the Mill levy?

Mill levies are set each year by taxing authorities: school districts, the county, cities, fire, water and sanitation districts, and others. These entities provide tax-supported services and are listed on your tax notice.

Who sets the assessment rate on residential property?

The Colorado Constitution requires that a specific relationship be maintained, on a statewide basis, between the assessed value of residential property and the assessed value of nonresidential property. The state legislature sets the residential assessment rate once every two years to maintain that relationship. The assessment rate on nonresidential property is kept constant at 29%.