Chapter 25 - § 25.3 • PROPERTY TAX

• Jurisdiction: Colorado

§ 25.3 • PROPERTY TAX

§ 25.3.1-General Description of Property Tax

All tangible property located in Colorado on January 1 (the assessment date) of each year is subject to property tax based on the value of that property, as determined by the county assessor of the county in which the property is located on the assessment date.¹⁰⁰ Unlike some states, the property tax in Colorado applies to both real property and tangible personal property.¹⁰¹ Various exemptions operate to exclude most non-business personal property from the property tax.¹⁰² In addition, inventories of merchandise and materials and supplies that are held for consumption by any business or are held primarily for sale are exempt from property taxes.¹⁰³

§ 25.3.2-Determination of Value

Property taxes are imposed against the "assessed value" of taxable property.¹⁰⁴ In general, the assessed value of most property other than residential real property is 29 percent of the actual value of the property.¹⁰⁵ The actual value of property is determined by the county assessor by appropriate consideration of the cost approach, the market comparison approach, and the income approach to appraisal.¹⁰⁶ These three approaches are applied by considering data arising during an 18-month "base period" that ends on June 30 of each even-numbered year.¹⁰⁷ The actual value determined for real property normally remains in effect for two tax years.¹⁰⁸ Personal property is valued annually and the actual value is then multiplied by a factor to arrive at the appropriate base period level of value for the personal property.¹⁰⁹

§ 25.3.3-The Assessment, Levy, and Collection Process

The actual value of property for property tax purposes is determined by the county assessor. The property tax statutes require the county assessor to provide the owner of the property with notice of the actual value assigned to the property and provide the taxpayer with protest and appeal rights.¹¹⁰ The mill levy (tax rate) is established by the board of county commissioners in the fall of the tax year.¹¹¹ Tax statements are issued in January of the following year, and the taxes are due by April 30 of that year or in two equal installments due on the last day of February and June 15.¹¹²

§ 25.3.4-Application of Property Taxes to the Construction Industry

The property tax statutes do not contain provisions that are unique to the construction industry. Certain aspects of the property tax statutes do, however, affect the construction industry to a...