Property tax assessments vs appraisals

Property tax assessments vs appraisals

Investor · Houston, TX · Member since 2015 · 7 posts · 0 votes

I am looking at some county tax records that show :

- Land Appraisal: $7100, Property appraisal: $30300 and Total appraisal: $37400

Then below there is a Total Assessment value that is considerably less than the total appraisal, $9350

I understand the difference between appraisal and assessment, but I am not sure how to interpret those numbers above for tax calculation purposes.

Thanks

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  • Denver, CO · Member since 2014 · 56 posts · 68 votes
    11y

    Appraisal establishes the market value of the property.  The assessment is the value that the tax is applied to, in your case, multiply the mil rate by $9350. 

    Here in Colorado we have a restriction on the  amount property taxes can increase on residential property. So a house here is appraised at $400k, but only assessed at $32k, the assessed value is kept low because taxes can only increase a certain amount. 

  • Mark B.Pro Member
    Rental Property Investor · Morgan Hill, CA · Member since 2012 · 212 posts · 64 votes
    11y

    Appears as though that limit does not apply to home rule municipalities (but this is not an area that I have any expertise):

    http://www.colorado.gov/cs/Satellite/DOLA-Main/CBO...

    Overview:

    ... All statutory tax levies ... shall be so reduced as to prohibit the levying of
    a greater amount of revenue than was levied in the preceding year plus five
    and one-half percent (5.5%)...

    The statutory "5.5%" Property Tax Revenue Limit, also known as the "Annual Levy Law" (Section 29-1-301, et seq., C.R.S.), applies to most statutory local governments that levy for property taxes. It does not apply to home-rule municipalities.

    For subject governments, the "5.5%" limit restricts the amount of property tax revenue that may be collected each year. The local government's limit is calculated by using information found on the Certification of Valuation (CV) sent by the county assessor by August 25 of each year. A final CV may be sent by December 10th for valuation information that the assessor may have changed.

    A worksheet is available to assist in calculating the statutory property tax revenue limitation, however, the Division of Local Government (DLG) also calculates the government's "5.5%" limit. This is done in September and again in December following the county assessors re-certification of valuation. Local governments should compare the 5.5% limit with the TABOR property tax limit to determine which one is the most restrictive property tax revenue limitation.

  • Investor · Houston, TX · Member since 2015 · 7 posts · 0 votes
    11y

    Thanks for the informaiton guys.

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