Tonight s Topics. I. Assessed Value Mill and Mill Levy III. Property Taxes (examples) IV. Assessed Value and Mill Levy i. A look back, a look ahead

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2 Tonight s Topics I. Assessed Value II. Mill and Mill Levy III. Property Taxes (examples) IV. Assessed Value and Mill Levy i. A look back, a look ahead

3 Assessed Value, Mill Levy, and Property Taxes Assessed Value is the taxable value of a property upon which property taxes are calculated. Residential Assessment Rate = 7.96% of market NOTE: The Residential Assessment Rate was changed by the 2017 General Assembly from 7.96% to 7.20% to comply with Gallagher. Non-residential Assessment Rate = 29% of market

4 Assessed Value, Mill Levy, and Property Taxes In Colorado, the constitution requires 55% of statewide property tax come from non-residential properties and 45% come from residential properties. ( Gallagher amendment). Assessment rates are to be defined and adjusted annually by the legislature to maintain this ratio. Gallagher requires adjustments to the residential rate (non-residential fixed) for compliance. Potential (and recent) conflict between Gallagher and TABOR if the residential rate needs to be increased.

5 Assessed Value, Mill Levy, and Property Taxes Assessed Value Calculations (examples) Residential Property Market value = $250,000 (established by County Assessor) Assessed value = Market value x Assessment rate (using revised rate) = $250,000 x.0796 = $250,000 x.0720 = $19,900 = $18,000 Non-residential Property Market value = $250,000 (established by County Assessor) Assessed value = $250,000 x.2900 = $72,500

6 Assessed Value, Mill Levy, and Property Taxes What is a Mill? A mill is a number used in establishing/calculating property tax A mill is a number equal to one thousandth (.001). One mill is equal to one-tenth of one percent (0.1%). Ten mills are equal to one percent (10 mills = 1.0%). What is a Mill Levy? Also known as a millage rate, it the property tax rate used to determine property tax liability.

7 Assessed Value, Mill Levy, and Property Taxes Mill Levy & School Property Taxes Academy District 20 has four components to the mill levy: School Finance Levy - Set in statute at mills (2.6952%) Abatement Levy Determined by El Paso County (variable in year) Override Levy Additional revenue approved by voters ($26,750,862) Bond Levy Revenue to meet debt service determined by repayment schedule Total of all four cannot exceed mills, established by District 20 voters in 1999.

8 Assessed Value, Mill Levy, and Property Taxes School Property Taxes (certified for collection in 2017) School Finance Levy (fixed by statute) Abatement Levy (determined by Assessor) Override Levy (cannot exceed $26,750,8620) Bond Levy (must meet debt service req) Total Levy *Each levy is certified by board resolution annually in December

9 Assessed Value, Mill Levy, and Property Taxes School Tax Liability (certified for collection in 2015) Tax liability = assessed value x mill levy For a $250,000 residential property, Tax Liability Components are: $19,900 $18,000 x = $ (school finance) $19,900 $18,000 x = $8.05 (abatements) $19,900 $18,000 x = $ (override) $19,900 $18,000 x = $ (bond) $19,900 $18,000 x = $1, (total)

10 Assessed Value, Mill Levy, and Property Taxes School Tax Liability (certified for collection in 2017) Tax liability = assessed value x mill levy For a $250,000 non-residential property, Tax Liability Components are: $72,500 x = $1, (school finance) $72,500 x = $32.41 (abatements) $72,500 x = $1, (override) $72,500 x = $1, (bond) $72,500 x = $4, (total)

11 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Assessed Valuation Actual Data Projected Data $2,500,000, $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

12 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Total Program Levy Assessed Valuation Actual Data Projected Data $2,500,000, $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

13 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Total Program Levy Abatement Levy Assessed Valuation Actual Data Projected Data $2,500,000, $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

14 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Total Program Levy Abatement Levy Override Levy Assessed Valuation Actual Data Projected Data Red line represents the existing total mill levy cap of mills (6.0216%) $2,500,000,000 $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

15 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Total Program Levy Abatement Levy Override Levy Bond Levy Assessed Valuation Actual Data Projected Data $2,500,000, $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

16 Mills Academy District 20 Assessed Value and Mill Levy Table - with NEW MONEY BONDS Total Program Levy Abatement Levy Override Levy Bond Levy New Debt Levy Assessed Valuation Actual Data Projected Data $2,500,000, $2,000,000, $1,500,000,000 Assessed Value $1,000,000, $500,000, $0 Tax Collection Year (*based on reassessment)

17 Questions?

The Residential Assessment Rate and the Gallagher Amendment

The Residential Assessment Rate and the Gallagher Amendment Slide from Legislative Council Staff Property Taxes in Colorado Actual Values Assessment Rate Assessed Values 7.2% Residential * 29% Nonresidential