This isn't really enlightening news for those who practice Colorado Springs Real Estate. Commonly, there are significant discrepancies regarding the value of one's residential property as it is based on the market approach to value by the El Paso County Tax Assessor and appraisals performed at the request of mortgage companies, banks and other lending institutions.
Typically, the appraisal data used by the El Paso County Assessor includes the consideration of market cost and income to value over an 18-month period of time. And for 2009, this 18-month period ended June 30, 2008, and the assessment rate for residential property was projected at 7.96%.
Something confusing to everyone, especially the common person who is a homeowner, involves how his or her residential property shows an increase in value by the tax assessor, and yet, appraisers who are contracted by the banks and lending institutions continue to devalue properties by analyzing the single/patio homes from the perspective of a declining market.
This logic contradicts both the El Paso County Assessor's summation of the tax rate as well as the calculations of home values by independent appraisers in Colorado Springs and the surrounding areas.
Unfortunately the deadline to protest the formulated tax rate by El Paso County for this year was June 1st.
However, one might want to consider appealing these types of tax discrepancies when receiving annual assessor reports in the future. For instance, if one owns a single residential home around the $389,221 actual value for 2008, then the assessed value of 30980 is then multiplied against the mill rate of .059341 for estimated taxes of about $1838.38. When applying the tax rate of 7.96% for the same home for 2009, the actual value increases to $416,466, whereby the assessed value of 33150 is then multiplied against the same mill rate of .059341 for an outcome of estimated taxes of $1967.15. The difference between 2008 and 2009 is simply an increase of $128.77.
For many, to protest the tax classification and/or valuation of the property might not be worth the time, energy and resources in the long run. But if one owns several investment properties, then the rights to appeal certainly should be considered financially. Because of the changing demands of the market, I certainly consider it prudent to evaluate the tax assessor reports annually and to appeal any discrepancies if warranted.