Residential Assessment Rate

Until 1982, the assessment rate for both residential and nonresidential property was 30 percent. However, beginning in the early 1970’s, the market values of residential property increased much faster than values of non-residential property, shifting a greater percentage of the tax burden to residential property owners. In 1982, § 3(1)(b), art. X, COLO. CONST., was enacted to stabilize the tax burden on residential property. The amendment established a floating assessment rate for residential property while fixing the assessment rate for most other classes at 29 percent. The residential assessment rate is adjusted during years of reappraisal to maintain a consistent ratio between the total statewide assessed values of residential and non-residential property. The Property Tax Administrator is responsible for performing the residential assessment rate study, § 39-1-104.2(4), C.R.S. The General Assembly adjusts the residential assessment rate based on the findings of the study conducted by the Property Tax Administrator. This page contains both the preliminary and final reports that were submitted to the legislature. In 2020, the Colorado electorate voted to repeal the variable residential assessment rate requirement of the Gallagher amendment through the passage of Amendment B. Correspondingly, Senate Bill 20-223 was passed by the general assembly, which removed the statutory language that directed the Property Tax Administrator to conduct the rate study. This ultimately resulted in assessment rates for all classes of property being established solely through statute. Senate Bill 21-293 then created a second assessment rate for residential property that is classified as multi-family. Senate Bill 22- 238 created a requirement for the Division to calculate the residential assessment rate for tax year 2024. The bill’s framework made changes to property tax assessment by lowering assessment rates and reducing the actual values of residential and commercial properties by $15,000 and $30,000 respectively. These changes reduce total revenue to local governments across the state that will ultimately be backfilled by the state treasurer. For 2024, the residential assessment rate calculation is supposed to make the cumulative revenue reduction equal $700 million.