Balancing Acts and Property Tax Facts
Spring is just around the corner and I want to share the latest updates and insights on the real estate market with you. But before we dive into that, let’s talk about something that many of us look forward to during the winter…snow! They are predicting several snowstorms for the remainder of the month, so for all of you ski and snowboarding enthusiasts, enjoy the amazing upcoming days on the mountain.
Now, let’s dive into a common conversation both here locally as well as across the country: property taxes. Here in Eagle County, it’s been a major point of discussion, especially with the recent anticipation and release of the 2023 tax bills at the end of January. In this edition of our newsletter, we’ll take a closer look at Colorado’s property tax rates compared to other states and explore the changes we’re witnessing in the Vail Valley’s real estate market. We’re also curious to hear about the property tax landscape in other places you may own, so make sure to read on and share your insights with us.
Lastly, we had a recent meeting that looked at nationwide real estate market and I wanted to share a couple of interesting observations from that. As we know, the “hot topic” of the past year has been interest rates. Rates dropped a little over half a percent through the month of December, so some buyers who were priced out of the market last year were expected to return. For buyers, this is important because each 1% decline in rates is roughly equivalent to paying a 10% lower price.
The inventory of unsold existing homes fell by more than 10%, from 1.13 million to 1 million, or the equivalent of 3.2 months of supply. The market continues to strongly favor sellers because anything less than 6 months is considered a seller’s market. For buyers, this means that they may be facing slightly more competition than in recent months.
Remember, I often have the inside scoop on off-market properties that haven’t graced the MLS yet. Consider it my secret stash of real estate treasures. If you have your heart set on a particular type of property, don’t dilly-dally. I highly recommend teaming up with a professional real estate agent—yours truly or your trusted go-to agent—sooner rather than later. Let’s embark on this exciting journey together and make your lifestyle dreams come true. You may be doing your own “happy dance” sooner than expected!
Did you know that Colorado’s property taxes rate among some of the lowest in the nation? Typically, Colorado rates within the top 5 best places to live based off of property tax rates. In 2022, the effective property tax rate for Colorado was just 0.52%, while one of our biggest feeder markets (Texas) rated at almost 2%. There’s no doubt that people come to Colorado because of our crisp mountain air, endless outdoor adventures and beautiful surroundings, but having one of the lowest property tax rates in the nation doesn’t hurt either! Are you curious as to how your property taxes are calculated in Eagle County? Scroll below to learn more about the process and for a few examples of recent tax changes for homes across the Vail Valley.
Data Source: US Census Bureau (2022)
About County Property Taxes
The assessment process is the basis for generating property tax revenues that pay for schools, roads, fire protection, police protection, and other local services. All of the revenue generated by property taxes stay within the county. The process for assessing property taxes is established by the state of Colorado. County assessors are mandated to reappraise all properties every other year and 2023 was an appraisal year.
How It Works
An assessment percentage is applied to the actual value of your property before property taxes are calculated. For tax year 2023, the assessment rate for residences is 6.70%, renewable energy & agricultural property 26.4%. Generally, all other property (including commercial/industrial and vacant land) are assessed at 27.90%. 39-1-104 C.R.S.
Property taxes are determined by multiplying the total actual value times the appropriate assessment rate (6.70%, 26.4% or 27.90%), to determine the assessed value. The assessed value is multiplied by the aggregate total mill levy for the property’s tax area to determine total property tax amounts.
The formula for approximating the tax bill amount is as follows:
assessed value x mill levy = taxes due
Given that 2023 was a reassessment year, there was concern among residents that their property taxes would double or triple. Luckily, a few weeks ago, the official 2023 taxes were released to homeowners and what we’re seeing is a variety of increases across both property types and areas throughout the county. We took 6 properties below from Vail to Gypsum and looked at their new assessed value (which all increased) as well as the increase to their property taxes. While property taxes did go up (along with values), the great news is that the majority of properties did not see those double or triple increases as anticipated! Check out the numbers below to get an idea of local taxes across the county, But remember…assessed values don’t always indicate fair market value when selling!
The Art of Discovery
Looking for an upcoming “Bucket List” vacation in the mountains or beach? Click to browse Cuvee’s luxury vacation winter availabilities. If you’re interested in any of these destinations, be sure to ask me for a VIP personal introduction.
Vail Represents at FIS Races
Vail, Colorado
Three Ski and Snowboard Club Vail alumni competed at their respective disciplines’ FIS Junior and U23 World Ski championships in the last two weeks. Liv Mortiz and Hunter Salani represented Team USA at the Alpine ski championships Jan. 27-Feb. 3 in Haute Savoie, France and Haley Brewster is currently in Planica, Slovenia at the cross-country ski event. Moritz claimed a bronze medal in the team parallel event at the Alpine championships and Haley Brewster advanced to the sprint heats in Nordic.
SpringFree Bluegrass Festival
Vail, Colorado
The organizers of the SpringFree Bluegrass Festival announced the initial lineup for the music festival coming to Eagle County this spring. Enjoy free live bluegrass music in Vail on May 24-26 with Bluegrass Generals, Sierra Hull, Jon Stickley Trio, Jeremy Garrett & River Wild, Pickin’ on the Dead, Tenth Mountain Division, Danger Mountain, The Rock and Roll Playhouse, Rapidgrass, and Skin the Rabbit. Headliner and additional acts to be announced and the lineup is subject to change.