Colorado residents may soon face a significant increase in property taxes, and more specifically, a large portion of the over 33,500 homeowners of Eagle County. Every two years, county assessors revalue properties in the state to determine the basis for taxes. With the rapid increase in property prices between 2020 and 2022, the upcoming revaluation may lead to an average 70% increase in residential property values, according to Eagle County Assessor Mark Chapin. If this ends happening, the real estate property taxes will skyrocket to the heaven. The United States is becoming a complicated place when it comes to taxes.
The potential increase has county officials bracing for a flood of appeals to the County Board of Equalization, with officials expecting more than 2,500 appeals, over double the total number of appeals in past valuation cycles. Over 100 taxing entities in Eagle County, Colorado, including schools and local fire districts, rely heavily on property taxes for funding. In December, these entities set their tax rates, known as mill levies, based on their annual budgets.
Wait for the Struck – Real Estate Property Taxes to Increase in Eagle County, Colorado
It is still too soon to know if property taxes will increase by 70% for taxes payable in 2024, but local district boards may be limited by Colorado’s Taxpayer’s Bill of Rights (TABOR). TABOR ties revenue increases to the Denver-Boulder consumer price index and requires voter approval of tax increases. If a government or district collects more than the limits, they must refund the money or ask voters for approval to keep and use the money.
While many entities have earned voter approval to exceed these limits, TABOR’s “reverse ratchet” complicates the situation. Mill levies cannot be raised without voter approval if they have previously been lowered.
Eagle County Commissioner Jeanne McQueeney acknowledged that there are no easy solutions to this problem. However, the Colorado legislature is working on potential solutions. Local and state officials are having “hard conversations” and encouraging residents to prepare for the potential increase in taxes.
This Could Be a Huge Property Taxes Increment for Eagle County Homeowners
Residents can plan ahead by considering payment options, as paying property taxes all at once can be a shock. Those with mortgages may see an increase in their monthly payments. McQueeney suggests that giving local governments the ability to adjust mill levies could be a solution, but this would require voter approval.
In the meantime, residents must be aware of the situation and prepare for the worst. The upcoming months are crucial for planning and preparing for the potential increase in property taxes.