Property taxes on Denver real estate seem to be a source of confusion for most homeowners and buyers.   Denver homes are individually assessed by the appropriate County Assessor.   This process ensures tax burdens are equally shared by all property owners. The County Assessor’s job is to establish accurate values for each individual property located within their respective county.   Revenues from property taxes are distributed to services provided by roads, schools, police, fire protection services, cities and towns, and other local entities.
 

What is Actual Value?

Real estate in Colorado is assessed every odd numbered year. On your tax statement you will see an item marked Actual Value.  The value of a property is based on market value and uses comparable sales for homes sold 2 years prior.  So for example, in the tax year 2011, the value would be based on homes sold in 2009.  Many buyers and sellers try to use the Actual Value of their homes as a measure for sale price.  This would not be an accurate assessment of current market value nor should it be an indication of your homes potential sold price.

This has had much significance over the past several years.  During the earlier part of the housing crisis, decreasing sales prices pushed property values down but tax assessments were still based on comparable sales from the two years prior.

 Assessed Value

Residential property is assessed differently than other types of property.  The assessment rate for property that is classified as residential is 7.96% or market value.  Assessed value is obtained by multiplying the Actual Value by the assessment rate which in this case would be 7.96%.

 Understanding Tax Rates

 
Counties and cities, school boards and special districts are all taxing entities.  These entities make determinations regarding the amount of revenue required for services and takes into consideration what the law allows.  Tax rates are calculated by looking at revenue from property taxes and total assessed values for properties located within the boundaries of a given entity.

 Total Tax Rates are determined by adding tax rates of each entity serving your specific area.  As responsible and informed tax payers, public budget hearings are scheduled and posted in the local newspaper.  Taxpayers are welcome and encouraged to attend these hearings.

 How Are Property Taxes Calculated

By multiplying the Actual Value by the Residential Assessment Rate currently set at 7.96% or .0796, you can obtain Assessed Value.  Assessed Value is then multiplied by the Tax Rate in your area in order to determine the amount of tax due on your property. 

Actual Value    x    Residential Assessment Rate    =    Assessed Value
Assessed Value    x    Tax Rate    =    Taxes Due

The Highlands Ranch new homes community, BackCountry, now has a new semi custom homes builder.  Joining SheaHomes and Richmond American Homes in this master planned community is an award-winning semi custom home builder, Paragon Homes.  Paragon is a highly acclaimed builder along the Front Range known for their attention to detail, quality styling, and value.  The home in Paragon’s collection selected for BackCountry will embody the unique look and feel of the community.    

BackCountry also features the Front Range’s most prominent custom builders.  Some of these include Advanced Building Concepts, Malibu Homes, Ades, Design Builders, Wall Custom Homes and Terracina Custom Homes.  The best of the best home sites have been reserved for these luxury custom homes.  According to BackCountry’s most current newsletter, as of November 9^th, 2010, 5 out of 6 lots released on Houndstooth Court were quickly reserved.  These homes feature half-acre plus walkout sites backing directly to the 467 acres of private open space. 

If you have not visited BackCountry, it is definitely worth a look.  Although the homes seem to sit a little close together for my personal liking, it is still a beautiful community with some amazing amenities.  What you see as you pass the community from Wildcat Reserve really does not do it justice.  With more than 8,000 acres of open space, approximately 467 of which are exclusive to the residents of BackCountry, it is really like nothing else available in the area.

Discerning buyers in the market for luxury homes should definitely take a look at BackCountry.  A resort like community awaits you in this truly unique community in Highlands Ranch.  For more information or a personal tour of the community and available homes, please contact us at 720-375-2962.