If you are a residential property owner, remember that you only have until June 1 to protest your property valuation. The new valuations, mailed out May 1, are based on sales between Jan. 1, 2009, and June 30, 2010, and they generally (depending on your neighborhood) reflect the city's housing slump. However, despite the fact that the assessor knocked down the value of your home, prepare for an increase in taxes for 2012. That's right. To avoid an estimated $10 million shortfall in revenues resulting from these new lowered property values, Denver's city council plans by raising our mil levy in 2012, a move they will likely approve unanimously later this year. Don't believe us? Go here to read a transcript of the council's April 20 General Government and Finance meeting -- council members are already prepping their talking points to explain while we essentially will suffer a 2012 tax increase, even if our property values have nosedived.
How will they do it? Property taxes are figured by determining the value of the property you own, then multiplying it by the mil levy set for your county. By law, Denver can't raise property taxes without a public vote, but it can raise the mil levy. The mil levy cannot be protested. Likewise, your property taxes cannot be protested. Only your property valuation can be protested. Remember, even if your valuation has gone down, your tax liability compounds over the time that you own you home.
The last time residential property valuations were announced the city ended up reducing the valuation on roughly half the 15,000 protests it received. Those 50-50 odds sound pretty good to us. How do you protest? Go to the county assessor's website here and follow the links on the right hand side of the page. The easiest way to protest is online. Just remember to do your homework, don't just whine that your taxes are already too high. You need to illustrate that your home has been overvalued and you can easily do this even if the assessor has already reduced the valuation on your home.
Make your case and show the assessor three comparable sales in your neighborhood that fairly represent the value of YOUR home. The assessor's website as an online database that the public can access and search for real property sales which sold between January 1, 2007 and June 30, 2008. Remember, this is the only time frame that matters -- anything before January 1, 2007 and after June 30, 2008 doesn't count, so don't even bother submitting it.
Also, is your kitchen outdated? Do you need a new roof? Peeling paint? This is the one opportunity you have to brag on your home's flaws and blemishes. Don't be shy -- point out every flaw your home has. If the comps the city is using (they should be on your four-page notice of valuation) are newer and nicer homes than yours, make sure you list that fact in your protest. If houses similar to your home have sold for less than the comps the city is using, offer them up! Also, make sure the county has its assessment correct -- square footage, condition ("average" means average to your neighborhood), basement footage, garage, etc. Some of their info on your property may be wrong, or outdated.
After protesting you should hear back from the assessor's office by August. If your protest is denied (probable, as a matter of routine) you should appeal to the County Board of Equalization. Instructions on how to do this will be included along with the assessor's response to your protest. If you disagree with the County Board's decision, you can still continue your appeal to the State Board of Assessment Appeals. At any rate, take it to the mat. It is your money and your home. Don't be passive. You can't afford it!
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