Anyone recently looking to buy a home in Colorado knows that it can be a pricey proposition. Selling prices seem eternally headed upward. But here’s some welcome news: residential property taxes may be moving in the other direction.
Residential property tax assessment rate may be lowered from 7.96% to 6.56% in time for the 2017-2018 tax year, notes Real Estate Insider.
Oddly enough, this adjustment is, in fact, caused by higher home prices. State law, according to Real Estate Insider, mandates that 45% of property tax revenue comes from residential property, while 55% comes from commercial property. As home values rise, it’s necessary to adjust the tax rate to maintain this ratio.
Meanwhile, Coloradans can also take solace in the fact that the median property tax rate as a percentage of home value is far lower than in other states. Americans nationwide pay 1.19%, while the median rate in Colorado is 0.6%.