Property Taxes and the Gallagher Amendment Colorado Legislative Council Staff
Property Taxes in Colorado Total - $8.1 billion in 2016 Counties - $1.7 billion General Fund - $1.64b Other - $0.09b Source: Division of Property Taxation, 2016 Annual Report.
Property Taxes in Colorado Actual Values Assessment Assessed = × Rate Values 7.20% Residential* 29% Nonresidential 87.5% Oil and Gas Assessed Taxes Local = × Values Owed Mill Levy *2017 Residential Assessment Rate
Gallagher Amendment Added to the state constitution in 1982 Governs the share of residential and non-residential property in the state.
Market Value Target Share Residential Residential 75% 45% Non-residential Non-residential 25% 55%
Residential Reassessment Cycle Tax Year Valuation Date Assessment Cycle 2013 July 1, 2012 2013 Re-Assessment Cycle 2014 July 1, 2012 2015 July 1, 2014 2015 Re-Assessment Cycle 2016 July 1, 2014 2017 July 1, 2016 2017 Re-Assessment Cycle 2018 July 1, 2016
Adjusting the Target Percentage + Residential Residential Existing Tax Base + New Construction + Change in Volume 45% 75% + +
Target Percentages 2015 2017 Residential Residential 45.67% 45.76% Non-residential Non-residential 54.33% 54.24% Source: Division of Property Taxation.
Residential Assessment Rate % Residential Market Value
Actual (Market) Values The Colorado Property Tax Base Billions $1,200 $1,000 Non-Residential $800 $600 Residential $400 $200 $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate.
Actual (Market) Values The Colorado Property Tax Base Billions $1,200 Annual Non-Residential Growth = 3.6% $1,000 Non-Residential $800 $600 Residential $400 Annual Residential Growth = 10.1% $200 $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. *Calculated as assessed values divided by an assumed 29 percent assessment rate.
Assessed Values Actual Values × Assessment Rate = Assessed Values Billions $120 Non-Residential $100 29% assessment rate $80 $60 $40 Residential $20 7.96% assessment rate $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast.
Assessed Values Actual Values × Assessment Rate = Assessed Values Billions $120 Non-Residential $100 29% assessment rate $80 $60 Target Percentage $40 Residential $20 7.96% assessment rate $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast.
Assessed Values with Required Residential Rate Reductions Billions $120 Non-Residential 29% assessment rate $100 $80 $60 $40 Residential $20 7.96% assessment rate 7.20% RAR* $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. * Legislative Council Staff will Forecast 2019 RAR in December 2017.
Assessed Values with Required Residential Rate Reductions Billions $120 Non-Residential 29% assessment rate $100 $80 $60 Target Percentage $40 Residential $20 7.96% assessment rate 7.20% RAR* $0 2014 2015 2016p 2017f 2018f 2019f Source: Division of Property Taxation and Legislative Council Staff forecast. * Legislative Council Staff will Forecast 2019 RAR in December 2017.
Change in Residential Assessed Values by County 2016 to 2017 Source: Legislative Council Staff forecast.
Change in Total Assessed Values by County 2016 to 2017 Source: Legislative Council Staff forecast.
Residential Assessment Rates: Statutory vs. Calculated Years Rate in Law Calculated Rate 1983-86 21.00% 1987 18.00% 1988 16.00% 1989-90 15.00% 1991-92 14.34% 1993-94 12.86% 1995-96 10.36% 1997-98 9.74% 1999-00 9.74% 9.83% 2001-02 9.15% 2003-04 7.96% 2005-06 7.96% 8.71% 2007-08 7.96% 8.19% 2009-10 7.96% 8.85% 2011-12 7.96% 8.77% 2013-14 7.96% 9.13% 2015-16 7.96% 8.24% 2017-18 7.20% Source: Division of Property Taxation.
Larson Silbaugh Senior Economist, Legislative Council Staff (303) 866-4720 Larson.silbaugh@state.co.us
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