Brace yourself: Larimer County property values increase dramatically from 2021
Property owners could be in for a shock next week when they get their 2023 reappraisals from the Larimer County Assessor's Office.
Larimer County property values have increased sharply since the last reappraisal in 2021 and new Notice of Valuation postcards that are expected to be mailed Monday, May 1, will reflect the dramatic rise in property values in 2021 and 2022, the time frame on which this year's valuations are based.
Fort Collins property values increased 40% during that span, according to the county, while Loveland saw a 37% increase and Red Feather Lakes saw the highest increase of 63%.
Low mortgage rates coupled with low supply and huge demand that pushed property values up are expected to result in a jump in property taxes. New construction also added more than 4,200 homes to Larimer County’s housing stock, according to the county.
The question is: How high will taxes go?
Unlike most years when some property values increase, some stay the same and some decline, Larimer County Assessor Bob Overbeck said "most everybody" will see an increase in their property values this year.
While property values are up considerably, Overbeck said "property taxes likely won't be going up" as much. "There is not necessarily a one-to-one ratio." He declined to speculate on how much the average tax bill would increase.
Estimated property taxes will be included on the notice of valuation this year, but a property owner's final tax bill will likely be lower depending on what mill levies local taxing districts set toward the end of the year, Overbeck said, and what action the state legislature might take to lower the tax burden.
The legislature has already increased exemptions to $15,000 for residential and $30,000 for commercial property owners, and may decide to increase them even more, he said.
So, if a house had an actual value of $300,000 in 2021 and its value increased by 40% in this reappraisal to $420,000, the $15,000 exemption would reduce the value to $405,000, reducing the owner's property tax liability, Overbeck said.
“The county’s scenic parks, trails, open spaces, and proximity to Rocky Mountain National Park have contributed to Larimer County becoming somewhat of a ‘Zoom town’ for people who use technology to work remotely while being close to these amenities,” said Overbeck in a press release announcing the valuation notices.
For the first time, Larimer County participated in a press conference with nine Denver-metro area counties Wednesday to highlight that "Larimer County is not alone in seeing these values," said Overbeck, who is hopeful the legislature will amend the property tax form "to reduce the financial burdens" that property owners are likely to feel.
With the rise in values, Overbeck is encouraging all Larimer County property owners who feel the valuation of their property is incorrect to appeal to the Larimer County Assessor’s Office through June 8.
“We want to make this process as accessible and convenient as possible for everyone in Larimer County,” Overbeck said.
Property value assessments skyrocketed 18.7% during the 2019 reappraisal but leveled off to an increase of about 5% in 2021.
How the property value assessment process works
The assessor’s office assigns a value to each home using a model that looks at comparable, qualified sales in each neighborhood from July 1, 2020, to June 30, 2022. All real property in Colorado is reappraised on a two-year cycle, in odd-numbered years.
Comparable sales include homes of the same or similar design within 20% of the house’s square footage and 15 years of its build date. If there weren’t enough comparable sales during that time period, the office looked farther back in 6-month increments.
The model also takes into account the square footage of the home, any improvements made since the last reappraisal period, the home’s quality and the home’s location attributes (such as: near a golf course or lake, traffic in the area, the home’s view), among other things. All these factors should reflect the home as it existed Jan. 1, 2023.
The assessed value is based on the property's actual value multiplied by the assessment rate. This year, the legislature reduced the assessment rate to 6.76%.
Half of 2021 protests saw adjusted values
Larimer County adjusted more than half of protested property values in 2021 — a drop from 2019, which saw record-breaking protests.
Of the 10,589 property valuation protests filed with the county, about 55% resulted in a reduced valuation. The average adjustment was 16.4%.
Overbeck is bracing for an influx of questions once property owners begin getting their valuations.
How property values changed in the past two years:
According to Overbeck's office, residential property values throughout Larimer County have increased between 37% and 63%:
Berthoud: $602,000, up 39%
Estes Park: $708,000, up 43%
Fort Collins: $561,000, up 40%
Johnstown: $548,000, up 38%
Livermore: $587,000, up 49%
Loveland: $511,000, up 37%
Red Feather Lakes: $410,000, up 63%
Timnath: $707,000, up 38%
Windsor: $830,000, up 39%
Wellington: $491,000, up 41%
How to protest your valuation
Owners who feel the valuation of their property is incorrect can protest their 2023 valuations with the Larimer County Assessor's Office until midnight June 8.
There are several ways to submit a protest:
By scheduling an appointment to speak to a licensed appraiser on weekdays from May 1 to June 8, at the Larimer County Assessor’s Office, 200 W. Oak St., Fort Collins, or at the Larimer County Loveland Campus, 200 Peridot Ave., Loveland. Appointments can be scheduled online or via telephone.
Online at larimerassessor.org.
By dropping forms at the dropbox at 200 W. Oak St. in Fort Collins until the midnight, June 8, deadline.
Mailing an appeal to the assessor's office. Appeals must be postmarked no later than June 8.
Disabled veterans, senior homeowners qualify for exemptions
Overbeck also encourages disabled veterans and seniors who qualify to apply for the Colorado Senior Homeowner Property Tax Exemption and the Disabled Veteran and Gold Star Spouse Property Tax Exemption. The deadline to apply for the Disabled Veteran Property Exemption is July 1, and the deadline to apply for the Senior Property Tax Exemption is July 15. Applications and information can be found at larimer.gov/assessor/exemptions.
Have questions?
Reach out to the Larimer County Assessor’s Office at www.larimer.gov/assessor.
This story will be updated as more information becomes available.
Coloradoan reporter Sady Swanson contributed to this report.
This story has been corrected. Colorado's Gallagher Amendment, which required a relationship be maintained between the amount of property tax paid on residential property and on nonresidential property, was repealed in 2020.
This article originally appeared on Fort Collins Coloradoan: Larimer County property values increase dramatically from 2021
