PROPERTY TAXES 201 An interactive workshop with the goal of providing a clear understanding of the property tax system!
Property Taxes 201 2015 tax roll year Introduction who am I? David B. Wissel, Park County Assessor Certified General Appraiser #CG01315752 I began working for the Park County Assessor s Office on 6/18/1979 I was appointed Assessor on October 6, 1980, and still serving! Other Community Activities: President, Upper South Platte Water Conservancy District 1985 Park County Land & Water TF Advisory Board 2002 Chairman, Headwater Authority of the South Platte (HASP) 2007 A VERY SPECIAL THANK YOU TO GARY NICHOLS FOR ALL OF THE NICE PICTURES! This is an informal workshop setting, ask questions, OK? We ll be done by 9 PM!
PARK COUNTY GEOGRAPHY
PROPOSED AGENDA Introduction Opening Remarks Review the history of property tax policy changes Constitutional amendments 1982 Amendment #1 forward Appraisal methods a. Cost Approach b. Income Approach c. Sales comparison (market) approach Property types a. Real b. Personal c. Possessory Interests
Proposed Agenda (cont d) Administrative Remedies (Appeal options) Performance Standards SBOE Appraisal Standards USPAP Certification of Values Budget Calendar & Public Hearings Final Certification of Values & Adoption of Levies Annual Calendar of Assessment Available data & services from our Office Questions review what isn t clear Adjourn & go home!
CODE OF THE WEST Good old fashioned country common horse sense 1. Live each day with courage 2. Take pride in your work 3. Always finish what you start 4. Do what has to be done 5. Be tough, but fair 6. When you make a promise, keep it 7. Ride for the brand 8. Talk less, say more 9. Some things are NOT for sale 10. Know where to draw the line STAND TALL & SHOOT STRAIGHT!
What Does the Assessor Do? The Assessor is responsible to locate, identify, and value all taxable property within the boundaries of each county. We create the tax roll each year, which we deliver to the Treasurer s Office to collect. We manage and administrate the property tax system, including ownership, location, legal description(s), and value. We offer a significant amount of public data, with a helpful and friendly staff of outstanding professionals!
My 36 Year Journey In The Assessment Business In order to know where the future path leads, I believe it is most helpful to know where you came from, as history is doomed to repeat itself. That is why we start with a review of past actions and events that have affected and impacted this diverse system. When I entered this Office, as an entry level employee in the summer of 1979, all property in Colorado was appraised at 30% of the total actual value, except 38 exceptions I haven t seen it all, but I have seen significant changes over these many years I don t know it all, but I continue to learn and grow, and roll with the flow!
Why Do We Keep Property Values Current, Every Two Years? The basis for all of our effort as the Assessor s Office is to equally distribute the $6.23 Billion (2015-16 adopted budget), dedicated to Kindergarten 12 th grade (K 12) education, from the State of Colorado, out of a $22 + Billion total state budget. Under a normal split, funding is 66% from state funds and 34% local dollars together are to support total funding. If we don t achieve equalized values throughout and within the State, then the fair distribution of these funds won t be accomplished
Notice of Valuation Important Information 2015 Reappraisal Sales Data Collection Period Appraisal Effective Date June 30, 2014 PARK COUNTY ASSESSMENT DATE EACH YEAR IS JANUARY 1ST Sales Period Begins CURRENT DATA COLLECTION PERIOD FOR TAX YEARS Previous Data Collection Period 2015 & 2016 SALES AFTER For Tax years 2013 & 2014 June 30, 201 Appraisal Date **Assessment Date CANNOT BE USED Present Date June 30, 2008 June 30, 2012 June 30, 2010 June 30, 2014 *** * * 6/30/2008 6/30/2010 6/30/2014 * SALES FROM PREVIOUS YEARS **Values are based on condition and MAY BE USED IN 6-MONTH level of property completion as INCREMENTS of the Jan. 1 Assessment date. *** A requirement of statute.
Constitutional Amendments 1982 Amendment #1 Referred to the people by the general assembly studied by a citizens committee Gallagher amendment residential property pays only 45% of the total property tax, all other property will pay the other 55% Residential rate designed to float,to insure compliance with this ratio - the current rate is 7.96% Initially the residential assessment rate set in 1983 was 21% Set all other property at a 29% assessment rate in the constitution no change by law, only by changing the constitution.
1982 Amendment # 1 (cont d) State Board of Equalization can issue Reappraisal orders for non-compliance with mandated appraisal related performance standards. Payback of excess K-12 school aid by all county residents, not just the property owners within that district. Designated the Cost & Market approaches only for residential property appraisals. Prescribed the appointment of the Property Tax Administrator by the newly re-structured State Board of Equalization, outside the State Personnel system.
1992 TABOR (Taxpayers Bill of Rights) Amendment Bruce began his petition (initiative) efforts in 1988, (lost) & 1990 (lost) finally successful as this initiative passed in 1992 with a 53% yes vote. Mandated multi-faceted changes to the property tax system enabling statutes had to address new conflicts with existing statutes, existing constitutional provisions, and this amendment! Eliminated the Cost approach, now only the Market (Sales Comparison) approach can be used for residential property appraisals.
TABOR (cont d) Mandated 2 types of spending & revenue caps! Interesting fact: Statutory property tax limits were already in place! At that time, the limit in State law (as now) was 5.5%, plus a local growth factor, above the previous years revenue, per taxing entity. RESTRICTS THE RATE OF GROWTH OF ALL STATE & LOCAL GOVERNMENT REVENUES TO THE LOWEST POSSIBLE LIMIT- BASED ON THE DENVER / BOULDER CPI INDEX, PLUS A GROWTH FACTOR. THE MOST RESTRICTIVE TOTAL DOLLAR AMOUNT OF THESE TWO BUDGET CALCULATION METHODS MUST BE USED BOTH REVENUES & EXPENDITURES! LOCKS IN ALL EXISTING TAX POLICY LAW, AND REQUIRES STATE WIDE VOTER APPROVAL TO CHANGE THOSE FACTORS.
1. Ratchet effect voter approval is required by each taxing authority for all tax increases, regardless of economic conditions, or when total assessed values decline. 2. Set specific requirements for pro / con statements, notice, & ballot language shall property taxes be increased 3. All fiscal / tax issue elections only held each year in November. 4. State government revenue & spending limits fixed at 6%* *Legislation to repeal this historic revenue limit passed the General Assembly in 2009 The residential assessment rate, as clearly stated (adopted in 1982 by Gallagher), can not be increased without statewide voter approval, (Tax Policy Changes) 2015-2016 Residential rate should have been 8.13% WILL COLORADO HOMEOWNERS EVER VOTE THEMSELVES A TAX INCREASE??
History of the Residential Rate Prior to 1983, all property was assessed at 30% 1983 1986 21% 1987 18% 1988 16% 1989 1990 15% 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%* 2007 2008 7.96%* 2009 2010 7.96%* 2011 2012 7.96%* 2013 2014 7.96%* * Residential Assessment Rate Study indicates a higher rate than is allowed by TABOR
1994 - Referendum A SINGLE SUBJECT RULE Limits offering or approval of ballot issues by the people of Colorado, by Initiative or Referendum, to a single subject. 2000 Referendum A - HOMESTEAD EXEMPTION FOR SENIOR CITIZENS Reduces the total actual value of a 65 years of age property owner, who has lived in the same primary residence for 10 years, by 50% of the first $200,000 of actual value - $100,000 maximum benefit.
IMPORTANT NEW INFORMATION TO OUR SENIOR CITIZENS ABOUT REFERENDUM A! Referendum A funding will be included in the total state appropriations (Long Bill) legislation, and will be funded again for the 2015 tax roll year, payable in 2016! This is a $110+ M budget line item to be covered by the State. We encourage you to continue to apply for this benefit, regardless of the actions of the Legislature. We have the forms on our web site
2003 Amendment 23 K 12 EDUCATION FUNDING Requires the State to fund K 12 Education funding at the rate of inflation plus 1% for years 2001 2002 through 2010 2011, and then at the rate of inflation each year thereafter. These increases in mandated revenue are exempt from the state spending limitations. Funds are required to be placed in the State Education Fund Interesting facts: Park County has 2 school districts South Park & Platte Canyon. South Park is almost exclusively funded by local property taxes, while Platte Canyon gets 60% of their total funding from Denver
2005 - Referendum C TIME OUT FROM TABOR LIMITS Authorizes a time out until 2012 (2010 legislation) to refund excess revenues, above the statutory revenue limits. Voters agreed to suspend their individual refunds, if any, placing these funds into new state spending priorities. Re-sets the State and local government spending limits at the expiration of the Referendum in 2010.
2006 Referendum F DISABLED VETERANS HOMESTEAD EXEMPTION Enables in our Constitution a similar process to reduce the total actual value of honorably discharged, 100% completely disabled resident veterans the same as the Senior Citizen discounts up to 50% of the first $200,000 in total actual value. Does not contain the 10 year residency requirement. Has always been funded by the Legislature each year.
Appraisal Methods Sales Comparison Approach (Market Value) How are other similar properties selling? Influences in value are identified from the local real estate market buyers & sellers set prices! We determine typical value not cost to build or construct. Income Approach to Value What can the property command in rent / income? Income stream is capitalized, (rate derived from the market), into a value estimate. Cost Approach to Value What is the reproduction or replacement cost of this building, as it exists today (including its accrued depreciation). Bricks & sticks!
Property Types Real Property - Includes land & improvements (buildings) affixed to the land. Also called tangible Real Estate. Dirt, bricks, & sticks! Personal Property Property utilized in a commercial enterprise, to generate income to the business. AKA, Intangible property. Possessory Interests Exclusive use of government owned real property. A fee is paid to the owner, along with a an additional property tax amount due, too.
Gallagher VS. TABOR Residential Rate Designed to float meet the 45% share All other property assessed at 29% Res rate now at 7.96% Ratchet down effect TABOR spending limit formula based on Denver Boulder CPI plus local growth factor (designed to be a low #) Requires most restrictive method be used, based on the prior years spending & revenue limits! No method for adapting to changing economic conditions!
Difference in Assessment Percentages! Residential property (Must be improved) Actual (market) value $100,000 2014 assessment rate 7.96% = The assessed value: $7,960 Multiply * the total mill levy = The total property tax amount due Vacant land/commercial (Any non-residential) Actual (market) value $100,000 Fixed assessment rate 29% = The assessed value $29,000 Multiply * the total mill levy = The total property tax amount due
Residential Versus All Other? Assessed value $7,960 *Mill levy 0.075805 $603.41 taxes All other property Assessed value $29,000 *Mill levy 0.075805 $2,198.35 taxes 3.64 times difference in assessment rate! 30 25 20 15 10 5 0 1982 2012 RES All Other
Where is the value in Park County? Major property classes Residential Vacant land Commercial Public utilities Agricultural All other types 50 45 40 35 30 25 20 15 10 5 0 % of Tax Roll RES LAND COM Public Utilities AG All Other
Where is the value in Colorado? Major property classes 40 RES Residential 35 COMM Commercial Oil & Gas Vacant Land State Assessed PU AG All Other types *2014 Abstract Data 30 25 20 15 10 5 0 % of Tax Roll Oil & GAS Vacant ST ASSD AG ALL OTR
TAX REVENUE DISTRIBUTION ALLOCATION OF YOUR PROPERTY TAX DOLLAR Recipient Revenue Percent of Amount Total School Districts $10,501,418 42 Park County $7,443,071 30 Special Districts $6,539,544 26 Incorporated Towns $341,727 1
2010 Park County Personnel Road & Bridge 25% Treasurer 3% Other 8% Admin 4% Assessor 6% Dev Svcs 7% Clerk 5% Communicatio ns 5% Human Svcs 6% 198 Full-Time 25 Part-time 9 Elected Officials Sheriff 31%
2011 Park County Personnel Road & Bridge Treasurer 2% Other 8% Admin 8% Assessor 5% Communicati ons 5% Dev Svcs 7% 22% Clerk 4% Human Svcs 6% 194 Full-Time 33 Part-time 9 Elected Officials Sheriff 27% Library 6%
Who Brings in the Money in 2011? Sheriff 11% Assessor 0% Admin 1% Dev Services 3% Other 13% Clerk 10% Treas 62%
2010 General Fund Expenditures Road & Bridge 5310429 Human Svcs 3471526 Capital 0 Retirement 240600 Recreation 35000 Sales Tax 711300 1041 Fee 73079 Self-Insurance 2241482 General Fund Capital 0% Personnel 7876434 Operating Operating 4589153 Debt Service 0 Capital 35% 0 Transfers 810227 13275814 Debt Service 0% 0 General Debt Service Transfers 6% Conservation Trust Grant Library E-911 Seizure Road & Bridge Human Svcs Capital Retirement Recreation Sales Tax 1041 Fee Self-Insurance Personnel 59% Personnel Operating Debt Servic Capital Transfers
Who Spends the Money in 2011? Dev Services 7% Sheriff 38% Other 23% Admin 20% Assessor 5% Clerk 4% Treas 3%
CALL LINE 9 5/4/2015
Administrative Remedies Each year from generally May June 1, for Real Property (land & buildings) a property owner can appeal their value as determined by the County Assessor. Please refer to our Office web site, located at www.parkco.org for appeal information and other administrative rights afforded our taxpayers, by state law.
Value Changes by Property Type FINAL REAPPRAISAL VALUES-2015 - TOTAL COUNTY PROPERTY 2014 FINAL 2015 PRE-APPEAL NET $$$ PERCENT TYPE ASSESSED VALUE ASSESSED CHANGE CHANGE RESIDENTIAL $193,357,590 $209,022,030 $15,665,030 8.10% VACANT LAND $130,283,690 $119,581,980 -$10,701,710-8.21% COMMERCIAL $24,389,620 $29,975,770 $5,586,150 22.90% INDUSTRIAL $732,020 $790,700 $58,680 8.02% AGRICULTURAL $16,767,250 $18,215,580 $1,448,330 8.64% NATURAL RESOURCES $4,192,790 $3,792,070 -$400,720-9.56% STATE ASSESSED $25,937,500 $25,937,500 $0 0% TOTAL VALUES $395,660,460 $407,316,220 $11,655,760 2.95%
Value Changes by School District RE-1 SCHOOL DISTRICT PROPERTY 2014 FINAL 2015 PRE- APPEAL NET $$$ PERCENT TYPE ASSESSED VALUE ASSESSED CHANGE CHANGE AGRICULTURAL $1,674,970 $1,926,630 $251,660 15.02% COMMERCIAL $8,266,645 $10,365,974 $2,099,329 25.40% INDUSTRIAL $393,750 $400,010 $6,260 1.59% NATURAL RESOURCES $16,590 $15,590 -$1,000-6.03% RESIDENTIAL $77,275,450 $87,192,960 $9,917,510 12.83% STATE ASSESSED $7,678,470 $7,678,470 $0 0.00% VACANT LAND $14,213,440 $11,469,660 -$2,743,780-19.30% TOTAL VALUES $109,519,315 $119,049,294 $9,529,979 8.70% RE-2 SCHOOL DISTRICT 2015 PRE- APPEAL NET $$$ PERCENT PROPERTY 2014 FINAL TYPE ASSESSED VALUE ASSESSED CHANGE CHANGE AGRICULTURAL $15,092,280 $16,288,950 $1,196,670 7.93% COMMERCIAL $16,122,972 $19,609,794 $3,486,822 21.63% INDUSTRIAL $338,270 $390,690 $52,420 15.50% NATURAL RESOURCES $4,176,200 $3,776,480 -$399,720-9.57% RESIDENTIAL $116,082,140 $121,829,660 $5,747,520 4.95% STATE ASSESSED $18,259,030 $18,259,030 $0 0.00% VACANT LAND $116,070,250 $108,112,320 -$7,957,930-6.86% TOTAL VALUES $286,141,142 $288,266,924 $2,125,782 0.74%
Value Changes by Towns TOWN OF ALMA PROPERTY 2014 FINAL 2015 PRE-APPEAL NET $$$ PERCENT TYPE ASSESSED VALUE ASSESSED CHANGE CHANGE COMMERCIAL $1,358,180 $1,475,300 $117,120 8.62% RESIDENTIAL $2,429,030 $2,504,190 $75,160 3.09% STATE ASSSESSSED $1,037,550 $1,037,550 $0 0.00% VACANT LAND $1,575,020 $1,285,870 -$289,150-18.36% TOTAL VALUES $6,399,780 $6,302,910 -$96,870-1.51% TOWN OF FAIRPLAY PROPERTY 2014 FINAL 2015 PRE-APPEAL NET $$$ PERCENT TYPE ASSESSED VALUE ASSESSED CHANGE CHANGE AGRICULTURAL $3,620 $3,900 $280 7.73% COMMERCIAL $7,026,842 $7,837,894 $811,052 11.54% INDUSTRIAL $91,850 $98,970 $7,120 7.75% RESIDENTIAL $3,647,180 $3,999,480 $352,300 9.66% STATE ASSSESSED $1,720,850 $1,720,850 $0 0.00% VACANT LAND $1,578,210 $1,620,780 $42,570 2.70% TOTAL VALUES $14,068,552 $15,281,874 $1,213,322 8.62%
Performance Standards STATE BOARD OF EQUALIZATION (SBOE) Our standards are based on the International Association of Assessing Officers (IAAO) Standard on Ratio Studies, but are twice as rigorous. They have served the citizens of Colorado very well since 1983. In 1993, I chaired a committee of the Colorado Assessors Association which reviewed, and then adopted the current standards for appraisal level, as well as assessment uniformity. Our assessment level of value (LOV) must be between.95 1.05, and the Coefficient of Dispersion (COD), must be no greater than 15.99 for Residential, and 20.99 for Non-Residential properties. Requires additional equity and measurements / standards for other property types too. Inter and intra- county equalization is critically important to the distribution of over $5.15 billion in 2011 2012 fiscal year K 12 education funding.
Appraisal Standards - USPAP Since 1990, all Appraisers employed by a County Assessor must obtain, and maintain a license from the Colorado Board of Real Estate Appraisers (BOREA), within 2 years of becoming a staff appraiser. Must become at a minimum a Registered Appraiser, or higher levels of Licensed, Certified Residential, or Certified General Appraisers. The County must provide, by law, for these credentials, (SB 1990-34), requiring our Office to demonstrate competency, experience, and verified formal appraisal education requirements, and we are USPAP (Uniform Standards of Professional Appraisal Practice) compliant. All of our staff appraisers are so qualified. I was a founding board member, and served the first 6 years on the BOREA, (1990 1996), as the Assessor member, appointed by the Governor. Chairman from 1992 1993, It was an honor to help establish a uniform program, applied to all appraisers equally regardless of where they practice the art of appraisal.
Certification Of Values To Each Taxing District & Authority On August 25, each year, the Assessor is required by law to certify the total taxable values to each property tax supported entity. This includes both the actual and assessed values, and additional information provided by the County Treasurer. This is the basis for determining the mill levy to be set by each taxing authority. Our final certification is generally provided to each entity the week of Thanksgiving. By law, we don t need to certify until 12/10, but this is not timely to the entities to meet their 12/15 statutory deadline to the BOCC. We have done this as a courtesy for the past several years.
Budget Hearings & Public Notice Of The Budget Process Each year, every taxing authority is required to publish a notice of their budget calendar, always in the fall of the year. Watch the Flume for more details. They are usually in the Public Notice area of the paper. You have the opportunity to be present, and to voice your concerns and priorities to these local elected leaders. Become informed, and become active! This is truly where the rubber meets the road, and the individual mill levy rates are set. They really do matter to your property tax bottom line!
How Property Taxes Compare Town of Fairplay Tax Area # 2 $100,000 Total Actual Value Residential Assessed Value $7,960 * Total Mill Levy 72.004 = $573.15 Property Taxes Commercial Assessed Value $29,000 * Total Mill Levy 72.004 = $2,088.12 Property Taxes Fairplay Sanitation District Tax Area # 17 $100,000 Total Actual Value Residential Assessed Value $7,960 * Total Mill Levy 60.205 = $479.23 Property Taxes Commercial Assessed Value $29,000 = $1,745.95 Property Taxes
How Property Taxes Compare Platte Canyon Fire District Tax Area # 5 $100,000 Total Actual Value Residential Assessed Value $7,960 * Total Mill Levy 60.440 = $481.10 Property Taxes Commercial Assessed Value $29,000 * Total Mill Levy 60.440 = $1,752.76 Property Taxes Bailey Water & Sanitation Tax Area # 6 $100,000 Total Actual Value Residential Assessed Value $7,960 * Total Mill Levy 85.832 = $683.22 Property Taxes Commercial Assessed Value $29,000 *Total Mill Levy 85.832 = $2,489.13 Property Taxes
Final Certification of Levies & Revenues By law, each taxing entity must certify to the BOCC by 12/15 their current tax roll year (next years) total mill levy and property tax revenue amounts. Any temporary one-year tax credits imposed, or any other factors are also certified at this time. The BOCC must accept these mill levy amounts to the tax roll, and has no authority to amend them. By law, they must complete their work no later than 12/22. The Assessor is then responsible to extend the total (aggregate) mill levies to the tax roll. The County Treasurer is then charged with the collection of the individual property taxes, in the next calendar year.
SOUTH PARK TAXES Entity Tax 2014 $100, 000 Value $100, 000 Value Name: Area # Levy Residential Taxes Commercial Taxes Town of Alma 1 72.847 $ 579.86 $ 2,112.56 Town of Fairplay 2 75.892 $ 604.10 $ 2,200.87 Jeff - Como Fire 3 58.655 $ 466.89 $ 1,701.00 Indian Mtn Metro 10 65.598 $ 522.16 $ 1,902.34 Hartsel Fire 14 56.048 $ 446.14 $ 1,625.39 Northwest Fire 18 56.076 $ 446.36 $ 1,626.20 So Park Co Fire 20 50.578 $ 402.60 $ 1,466.76 No Fire So Park Co 4 42.912 $ 397.30 $ 1,244.45
PLATTE CANYON AREA TAXES Entity Tax 2014 $100, 000 Value $100, 000 Value Name: Area # Levy Residential Taxes Commercial Taxes Platte Canyon Fire 5 63.172 $ 502.85 $ 1,847.88 Bailey Water & San 6 88.564 $ 704.97 $ 2,568.36 Harris Park Metro 7 74.999 $ 596.99 $ 2,174.97 Elk Creek Fire 8 59.223 $ 471.42 $ 1,448.23 Will O Wisp - PC Fire 12 87.383 $ 695.57 $ 2,534.11 Will O Wisp Metro 18 83.434 $ 664.13 $ 2,419.59
Annual Calendar 1 January Assessment date 15 April Personal property declarations mailed to taxpayers 1 May Notices of valuation sent changes in value 1 June Real property appeals end 15 June Personal property NOV s mailed 30 June Real Property Notices of Determination mailed 5 July Personal Property appeals end 10 July Personal Property NOD s mailed
Annual Calendar (Cont d) 1 August County Board of Equalization (CBOE) meets 25 August Preliminary abstract of assessment filed with the DPT & the Preliminary district certifications mailed 10 October State Board of Equalization reviews annual audit reports, and each county abstract of assessment 22 November Final certification of values mailed 15 December Entities report levy and budget data to board of county commissioners 22 December County Commissioners certify levies and revenues 1 January, start all over again!
Available Data - Services Main Office P.O. Box 636 501 Main Street, Fairplay, CO 80440-0636 We can be contacted by Telephone, email, or Snail Mail 719.836.4394 Appeal line (Only during Appeal Season, May & June, OK?) 719.836.4331 Normal Business Line Office Web site: www.parkco.org Email: dwissel@parkco.us
Questions & Review: Was this presentation worth your time? What did you like? What didn t you like?
Thank you very much for spending your time with ME! I Let s Adjourn and GO HOME!