WHAT IS THE DIFFERENCE BETWEEN “ACTUAL” VALUE AND “ASSESSED” VALUE?
The Assessor determines the “actual” (market) value for all real and personal property. Then, a percentage of that value is taken in order to derive the “assessed” value. For all property in Colorado except residential, the assessment percentage is 29%. For residential property, a new assessment percentage is determined each reappraisal year by the State legislature. The most recent assessment percentage for residential property is set at 7.96%. The assessed value, multiplied by the mill levy, produces the property tax.
The assessor determines the actual (market) value for all real and personal property. Then a percentage (assessment rate) is multiplied by the actual value to come up with the assessed value. In Colorado the residential assessment rate is 7.96%. For all other properties including vacant land and agricultural land, the assessment rate is 29%.
