Assessor’s Office Appeal History
and Valuation Projections
2011
2/3/2011 1
How did I become the Eagle County
Assessor?
2/3/2011 2
What Does the Assessor’s Office Do
• Discover
• List
• Classify
• Value
• Map
• Reappraise
• Answer Appeals
• Public assistance
• Taxable property is divided into two classes, real property and personal property.
• Real property includes land and all buildings, structures, and improvements to the land.
• Personal property is machinery and equipment, fixtures, furniture, and other items that are movable in nature used by a business.
Now that you have a better idea of what the Assessor does; here are a few things that the Assessor does not do. Contrary to popular belief, the Assessor:
• - does not set the tax rate • - does not create or send out tax bills • - does not collect taxes
• Tax rates for Eagle County and all 86 tax entities within the county
boundaries are set each year by their respective appointed boards or elected officials and are based on the budgets they pass to fund programs and services.
• The County Treasurer is responsible for using the tax rate and the assessment roll from the assessor’s office to create and send out tax bills to all county property owners. The Treasurer is also responsible for collecting property taxes.
Myths and Legends
What role does the Assessor play in your taxes?
The Eagle County Assessor Certifies Values to 86 Taxing Authorities Annually
Towns/Cities 7
School Districts 4
Metropolitan Districts 37
Park & Rec Districts 3
Fire/Ambulance Dist 6
Water & San Districts 6
Conservation Districts 2
E.C. Health District 1
Misc. Districts 14
Eagle County 6
Total Districts 86
What is a Mill Levy?
• Mill: A monetary unit equal to 1/1000 of a dollar, or 1.0 mill is equal to $1.00 for every $1,000 of assessed value
• Levy: To impose or collect.
• Mill Levy Calculation is simple:
– Estimated Budget $175,000 Divided by Total Assessed Value of $3,500,000 = .05000 or 50.00 Mills
– Revenue needs are determined by each tax entity, based on past revenue collections with specific revenue limitations applied. (Which may vary, entity to entity) The best sources for specific budget and revenue information is the entity itself or the Colorado Division of Local Government.
Legal Limitations on Property Tax
• 1982 Gallagher Amendment to the Constitution
– Requires that during re-assessment periods, the assessment rate for residential property be adjusted, on a State-wide basis, so that:
• The ratio of residential assessed value to non-residential assessed value is maintained.
– Since 1983, 45% residential value vs. 55% value for all other classes
– In 1983, residential assessment rate was 21%, while all other classes were 29
2/3/2011 7
Legal Limitations on Property Tax
Gallagher Amendment (cont.)
History of the Residential Assessment Rate
YEARS RES RATE CALCULATED
1983 - 1986 21.00%
1987 18.00%
1988 16.00%
1989-1990 15.00%
1991-1992 14.34%
1993-1994 12.86%
1995-1996 10.36%
1997-1998 9.74%
1999-2000 9.74%
2001-2002 9.15%
2003-2004 7.96%
2005-2006 7.96% 8.17%
2007-2008 7.96% 8.19%
2009 7.96% 8.91%
Note: Beginning in budget
year 2006 the Legislative
Council indicates that the
residential assessment rate
should have increased to
maintain ratio but did not due
to prohibitions in the TABOR
Amendment.
Tabor/Gallagher Conflict
How are Property Taxes Calculated?
Commercial
or Vacant
Residential
Property
Market Value or
Actual Value
Assessment Ratio 29% 7.96%
Assessed Value
Mill Levy
Taxes
Approx Town of Eagle Mill
Levy
Why does commercial/vacant pay
more taxes?
Statute provides that the actual value is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate or ratio” and the resulting value is the assessed value. Note: To calculate the tax, move the decimal over 3 places to the left and multiply by the assessed value.
$145,000 $39,800
57.156 57.156
$2,274
$8,287
TABOR Amendment
• The market approach to value is the only valuation approach which can be considered in estimating the value of residentially improved property.
• Vacant land value is determined based on comparable sales (market approach).
• Commercial property valuation is based on the cost, market or income approaches to value.
• Agricultural land valuation is based on the lands productive capacity (residential structures are valued with the market approach and agricultural buildings; barns, sheds etc, are valued using the cost or market approach)
Assessment date vs. Appraisal date
Notices of Value (NOV) are mailed May 1 every year. 2009 was a
reappraisal year, all property received NOV’s. For the intervening year,
2010 only Property which has changed, i.e. new construction, remodels,
demolition or reclassification received notice.
The appraisal date and assessment date are different. The
assessment date is January 1 (12 noon) of each year. The
assessment date determines how individual property is classified
and valued for the next year, based on the past June 30 appraisal
date.
Sales Time Frame
(Base Period) Jan. 1, 2009 – June 30, 2010 If insufficient Sales data, can go as far back as 5 years
Appraisal date June 30, 2010
Vail MLS and County Sales Graphs
Total Transactions 2005 - 7/2010
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2005 2006 2007 2008 2009 2010
Year
To
tal N
um
ber
of
Sal
es
Total Sales Volume 2005 - 7/2010
$0.00
$500,000,000.00
$1,000,000,000.00
$1,500,000,000.00
$2,000,000,000.00
$2,500,000,000.00
$3,000,000,000.00
$3,500,000,000.00
2005 2006 2007 2008 2009 2010
Year
Sale
s $
$$
Average and Median SP per year
Based on Sales of all Property Types
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
2006 2007 2008 2009 2010
Year
Sale
s $
$$
Median
Average
Eagle County Total Sales Transactions 2001 -2010
0
1000
2000
3000
4000
5000
6000
7000
2002 2004 2006 2008 2010
June 30 Appraisal Date
(Sales data is from the preceeding 18 months)
Nu
mb
er
of
sale
s
Building Permit and New Construction $$$
2005 - 2010
New Construction Assessed Value 2005 - 2010
$0.00
$20,000,000.00
$40,000,000.00
$60,000,000.00
$80,000,000.00
$100,000,000.00
$120,000,000.00
$140,000,000.00
2005 2006 2007 2008 2009 2010
Year
Assessed
V
alu
e
Building Permits County Wide
2007 - 2010
0
500
1000
1500
2000
2007 2008 2009 2010
Year
Perm
it V
olu
me
Building Permits by Jurisdiction
2007 - 2010
0200400600800
1000120014001600
Avo
n
Bas
alt
Eagl
e Cou
nty
Eag
le
Gyp
sum
Vail
Total
Nu
mb
er
of
Perm
its
2007
2008
2009
2010
Recent Sales Activity Eagle and Roaring
Fork Valleys • List prices and final sales have been falling since the Fall
of 2008 with the downtrend continuing to date. • Sales volume began to drop in 2006 following the largest
sales transaction year, 2005 • Eagle Valley 30% +/- • Roaring Fork Valley 35% +/- • With limited sales data available across the county, each
sales transaction is being verified and researched extensively by the assessors staff
• Available sales data includes short sales and foreclosure sales
• Formation of a steering committee/advisory board comprised of Real Estate Professionals
Single Family Valid Sales Data 2005 - 2010
• According to the most recent market analysis the overall local residential market change is determined to be anywhere from -30% +/-.
• Condominium property values have fallen -30% +/-.
• Single Family/Townhomes have fallen -28% +/-.
• Vacant land has experienced a similar decrease of -50% +/-.
• Commercial property has not been fully analyzed to date.
Eagle County Value Change 1993 – 2010
Eagle is the 10th largest county in real property assessed value in Colorado.
Taxable Value
Increased from
$700 million to 3.6
billion from 1993
to 2010 in Eagle
County.
Projected
assessment for
2011 is based on
an estimated 30%
reduction in
residential
property value
Eagle County Assessment 1993-2011
$-
$500,000,000.00
$1,000,000,000.00
$1,500,000,000.00
$2,000,000,000.00
$2,500,000,000.00
$3,000,000,000.00
$3,500,000,000.00
$4,000,000,000.00
1993 1995 1997 1999 2001 2003 2005 2007 2009 2011
Year
Assessed
Valu
e
Appeals History
• Appeals in Eagle during peak (reappraisal) years have grown from 5100 to over 8000.
• During static (flat) market periods appeals tend to go down.
• Appeals by Abatement have more than doubled in the past two years.
Appeals History 1999 -2010
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Year
Abatement Appeals History 2005 - 2010
0
50
100
150
200
250
2005 2006 2007 2008 2009 2010
Year
Nu
mb
er
of
Ab
ate
men
ts
Appeal Comparison 2005-2007-2009
2005 Total ASR Appeals 2550 2007 Total ASR Appeals 5863 2009 Total ASR Appeals 8087
Adjusted 1484 58% Adjusted 2875 49% Adjusted 3607 45%
Denied 1035 41% Denied 2965 51% Denied 4478 55%
Withdrawn 31 1% Withdrawn 23 0% Withdrawn 2 0%
2005 Total CBOE Appeals 495 2007 Total CBOE Appeals 1548 2009 Total CBOE Appeals 2555
Adjusted 181 37% Adjusted 721 47% Adjusted 1495 59%
Denied 305 62% Denied 813 53% Denied 1035 41%
Withdrawn 9 2% Withdrawn 14 1% Withdrawn 25 1%
Filed Foreclosures
Sold/Deeded Foreclosures
Timeshare Foreclosures
Foreclosure Summary
1983 - 2010
Foreclosures/Short Sales in the News and
Listings • FORECLOSURES: UP & DOWN
Foreclosure filings in Colorado in the second quarter fell 15.7%, to the lowest level in five quarters. Filings were significantly down on the Front Range, with Denver dropping 30%, but filings in rural areas were up, especially on the Western Slope, with Eagle County filings up 50%; Mesa County up 40%; and, Summit County up 23%. Source: August 6, 2010 Alpine E-Line
• The assessors staff is analyzing sales after foreclosure and short sales data to determine if either situation has contributed to the declining real estate market in Eagle.
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