DENVER (CBS4) – It’s nice to know a home’s value is rising. It’s not nice to learn that means property taxes are going up as well. This year’s property valuations are in the mail and will reflect the impact of higher prices brought on by high demand and a low supply of homes in the metro area.
Assessors can’t predict the exact increase on property taxes, but metro area residents should be prepared for some sticker shock.
Jim Mitchell and his wife Cindy had to buy quickly to get their hands on a home in Highlands Ranch last year when they moved to Colorado from California.
“The houses were going so quickly,” Cindy Mitchell said.
Colorado’s increased demand for homes is driving up prices and values. In just two years values have jumped approximately 20 percent in Douglas, Broomfield, Adams, and Jefferson counties; 22 percent in Arapahoe County; and an astounding nearly 30 percent in Denver.
Homeowners’ wallets could take a hit.
“There is certainly the potential for many property owners to have some increased tax bills,” said Keith Erffmeyer, Denver City and County Assessor.
But there’s an upside. Erffmeyer says the rising home values reflect the housing market’s recovery from the economic crash.
“It’s a pretty dramatic reaction to the downturn to have an upturn like this, but we feel like that’s good news that people have recovered, their property values have recovered,” he said
The Mitchells feel the same way.
“In California our taxes were about three times what we’re paying now, and the school programs were not as good,” Jim Mitchell said. “We’re really happy with what we found here, and if it costs a little bit more, it costs a little bit more.”
Those who feel like their new property valuation is too high can file an appeal online or with a protest form, but it must be submitted by June 1. Erffmeyer says about half of the appeals filed are successful in getting property values lowered.