Douglas County leaders have approved a plan to reduce property values by about $4 billion in a push to help residents hammered by soaring taxes but the plan still requires state review.
The county commissioners voted unanimously this week to implement the adjustment in 2023 home value assessments — the first effort by a metro Denver county to address Colorado’s anticipated property tax surge.
The new valuations will save residents of Douglas County an average of $223 on their January tax bills, officials said, but also mean $28 million less in funds for the county government.
Commissioner Abe Laydon linked the decision to county opposition to Proposition HH. That statewide measure, which goes to voters this fall, would allow property owners to deduct $50,000 from their property’s value while increasing how much the state can keep under the Taxpayer’s Bill of Rights.
“We listen to our citizens, and in this economy, where every dollar is stretched, any relief is going to be significant for working families,” Laydon said.
“We are not interested in making government bigger than it needs to be. We have enough of the citizens’ money,” he said. “We may be the first county. I hope we are not the last. In Colorado, everybody needs property tax relief and I hope there is more to come.”
Property values in Douglas County increased by 30% to 60% this year. The number of protests by property owners in the county reached 36,000, officials said, and led to an average 7.2% reduction– about $50,000 on average.
Now the broader adjustments in value approved by commissioners will provide additional 4% reductions for 125,809 properties.
“We have a property tax crisis unfolding before us,” Assessor Toby Damisch said. “We have property owners already pushed to the brink of collapse. It is going to force families to sell, downsize, or get out of Colorado.”
Colorado Division of Property Taxation officials automatically review county adjustments. Local leaders in Costilla County also are pursuing an adjustment of valuations this year, state property tax administrator JoAnn Groff said, pointing to housing market conditions as the root cause – “phenomenal growth in value and high demand.” Any countywide adjustments must be based on market value criteria, not just a desire to reduce tax bills sent out in January, Groff said.
Douglas County’s adjustment to reduce valuations by 4% in an effort to ease tax exposure appears “above board and acceptable,” complying with state laws and regulations, she said.
“It is unusual to adjust a whole class of property by an amount like this. It is outside of what we normally have seen. Will we see other counties making similar adjustments? We may. If, through the review, it looks like it was a reasonable action, it will go forward.”
Get more Colorado news by signing up for our daily Your Morning Dozen email newsletter.
Source: Read Full Article