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Protest Your Colorado Property Tax Value: Free Course

Is your value too high? Comparable sales, condition problems, and errors in the assessor's facts

Protest Your Colorado Property Tax Value · 1 study hours

Bottom line: Prove a too-high value with three things: typical comparable sales from the data-gathering period, documented condition problems, or corrected facts, and state a dollar figure.

Bottom line first. A value is too high for one of three reasons you can prove: similar homes sold for less during the data-gathering period, your home has a condition problem the assessor did not account for, or the assessor's facts about your home are wrong. Pick the strongest one, back it with paper, and put a dollar figure on it.

The legal reasons you can give

The statute says you may object if you think your property "has been valued too high, has been twice valued, or is exempt by law from taxation or that property has been erroneously assessed to such person" (C.R.S. 39-5-122(2)). You state the reason in general terms. A change in the assessment rate is never a reason (C.R.S. 39-5-122(2)).

Reason 1: comparable sales

A comparable sale (a "comp") is the sale of a home similar to yours in size, age, location and quality. For homes, the law uses the market approach (C.R.S. 39-1-103(5)(a)), so comps are the core evidence.

Rules for good comps, from the statute text we checked:

  • They should be sales in the data-gathering period (the past window of sales the assessor must use, explained in lesson 1) that "reasonably reflect a true or typical sales price" (C.R.S. 39-1-103(8)(a)(I)).
  • The assessor must use a representative body of sales and weigh how similar each is to the property (C.R.S. 39-1-103(8)(a)(I)).
  • A typical sale is a negotiated sale that the assessor has screened and verified (C.R.S. 39-1-103(8)(b)). A forced or unusual sale may not be typical.
  • The sale should reflect the price of the real property only, not items like furniture (C.R.S. 39-1-103(8)(f)).
  • If the assessor knows a home was converted from one residential use to another, the sale is presumed not comparable for a home with the earlier use (C.R.S. 39-8-108(5)(e)). Use this to question the assessor's comps too.

Practical steps: find three to five homes close by, as close in size and age as you can, sold inside the window. Write down the address, sale date, price, square feet, beds, baths and condition. Divide price by square feet for each to get price per square foot (price divided by living area). Then multiply the typical figure by your home's real square feet.

Reason 2: condition problems

Condition means the physical state of the home: a cracked foundation, a bad roof, water damage, an unfinished basement counted as finished. Assessors usually work from records and exterior views and may never see inside, so problems can go unseen. The law lets the assessor adjust value for unusual conditions (events and changes the law names, such as an addition, a remodel, or damage from fire, explosion, vandalism or acts of nature) and for the end of an improvement's economic life (the years it stays useful) with only salvage value left (C.R.S. 39-1-104(11)(b)(I)).

Evidence: dated photos, repair estimates in writing, inspection reports. A repair estimate gives you a dollar figure to subtract. Keep in mind the value is set as of the data-gathering period, so say how the problem existed then, or arose from a named unusual condition.

Reason 3: errors in the assessor's facts

The easiest protest to win is a plain factual mistake. In the first year of a cycle your notice carries an itemized listing of your land and improvements (C.R.S. 39-5-121(1)(b)(I)). Check each line: finished square feet, bedrooms, bathrooms, garage, basement, year built, lot size. If a line is wrong and it makes the value higher, the statute says that if the assessor finds a valuation "erroneous or otherwise improper," the assessor shall correct the error (C.R.S. 39-5-122(2)).

You can also ask the assessor in writing for the data used to value your home. The law says to provide it within seven working days (C.R.S. 39-5-121.5), though you may pay the cost. The assessor must consider the information you present (C.R.S. 39-5-122(5)(b)).

Example with real numbers

The rates in step 6 are made up for the arithmetic and are not the current rates.

  1. Jordan's notice values the home at $480,000 and lists 1,800 square feet. A tape measure shows 1,600 finished square feet.
  2. Jordan finds three sales inside the data-gathering period: $455,000 for 1,650 sq ft; $470,000 for 1,700 sq ft; $441,000 for 1,580 sq ft.
  3. Price per square foot: $455,000 / 1,650 = $275.76; $470,000 / 1,700 = $276.47; $441,000 / 1,580 = $279.11.
  4. Average: ($275.76 + $276.47 + $279.11) / 3 = $277.11 per square foot.
  5. Apply to the real size: 1,600 x $277.11 = $443,381, rounded to $443,000.
  6. Difference from the notice: $480,000 - $443,000 = $37,000. At a made-up 6.5% rate and 90 mills: $37,000 x 0.065 = $2,405; $2,405 x 0.090 = $216.45 a year.
  7. Jordan's protest says: wrong square feet (1,600, not 1,800), three comps, and an opinion of value of $443,000.

Always give a dollar figure

If you go on to appeal to the county board, the petition for real property must contain a specific dollar amount offered as the correct value (C.R.S. 39-8-106(1.5)). Decide on your number now, from your comps. Also know the risk: on appeal the value may not be set more than five percent above the county board's valuation (C.R.S. 39-8-108(5)(a.5)).

This is general education, not legal or tax advice.

Law cited

Key terms

Comparable sale
The sale of a similar home, close in size, age, location and quality, used as evidence of value.
Data-gathering period
The past window of sales the assessor must use for value.
Typical sale
A negotiated sale screened and verified as reflecting a true selling price.
Price per square foot
Sale price divided by finished living area; a way to compare homes of different sizes.
Condition
The physical state of a home, such as foundation, roof or water damage.
Unusual condition
An event or change the law names, such as damage, an addition or a remodel, that can change value.
Itemized listing
The list of your home's facts on a first-year notice; check each line.
Economic life
The years an improvement stays useful; when it ends only salvage value may remain.

Flashcards

Name the three provable reasons a value may be too high.

Comparable sales, condition problems, and errors in the assessor's facts.

What is a comparable sale?

A sale of a similar home, close in size, age, location and quality.

Which sales count?

Typical sales in the data-gathering period (C.R.S. 39-1-103(8)(a)(I)).

How do you compute price per square foot?

Sale price divided by finished living area.

What evidence supports a condition claim?

Dated photos, written repair estimates, inspection reports.

Which kinds of damage does the law list as unusual conditions?

Fire, explosion, vandalism, accident and acts of nature (C.R.S. 39-1-104(11)(b)(I)).

Which fact errors are common?

Square feet, bedrooms, bathrooms, garage, basement, year built, lot size.

What must the assessor do with your information?

Consider it when deciding whether to adjust the value (C.R.S. 39-5-122(5)(b)).

How soon must the assessor release value data on a written request?

Within seven working days (C.R.S. 39-5-121.5); cost may be charged.

What must a county board petition for real property state?

A specific dollar amount offered as the correct value (C.R.S. 39-8-106(1.5)).

Quiz: 10 questions

Tap an answer. It shows right or wrong and opens the reason. Your score is saved in this browser and counts in the study app.

  1. Which is NOT listed in the statute as a ground for objecting to a valuation?

    1. A A change in the assessment rate
    2. B Valued too high
    3. C Valued twice
    4. D Erroneously assessed to the person
    Show answer and why

    Answer: A. A change in the assessment rate

    The statute states a change of the ratio shall not constitute grounds. The other three are named reasons.

    C.R.S. 39-5-122(2)

  2. Which sales should your comparable-sale list mostly use?

    1. A Any sale in the past 10 years
    2. B Typical sales inside the data-gathering period
    3. C Sales of the most expensive homes on your street
    4. D Sales from the current month
    Show answer and why

    Answer: B. Typical sales inside the data-gathering period

    The law samples sales that reasonably reflect a typical price during the data-gathering period. Late sales fall outside it and extreme sales are not typical.

    C.R.S. 39-1-103(8)(a)(I)

  3. Three comps sold for $300,000 (1,500 sq ft), $320,000 (1,600 sq ft) and $330,000 (1,650 sq ft). What is the average price per square foot?

    1. A $191
    2. B $215
    3. C $320
    4. D $200
    Show answer and why

    Answer: D. $200

    $300,000/1,500 = $200; $320,000/1,600 = $200; $330,000/1,650 = $200; the average is $200. $320 is a sale price, not a price per foot.

    C.R.S. 39-1-103(8)(a)(I)

  4. Using $200 per square foot, what value fits a 1,450 square foot home?

    1. A $310,000
    2. B $300,000
    3. C $290,000
    4. D $272,500
    Show answer and why

    Answer: C. $290,000

    1,450 x $200 = $290,000. Using the comps' 1,500 sq ft size instead would give $300,000.

    C.R.S. 39-1-103(5)(a)

  5. The notice lists 3 baths, but your home has 2. What is the best response?

    1. A Say nothing; it does not matter
    2. B Ask for a correction and show proof of the real count
    3. C Wait for the tax bill
    4. D Skip the protest deadline since it is a small error
    Show answer and why

    Answer: B. Ask for a correction and show proof of the real count

    A factual error that raises value is a plain valuation mistake; the assessor must correct a valuation found erroneous. Ignoring it or missing the deadline loses the easiest win.

    C.R.S. 39-5-122(2)

  6. A home was converted from one residential use to a different one and the assessor knows it. What does the law presume?

    1. A Its sale is the best comp
    2. B Conversions are ignored
    3. C Its sale must be doubled in weight
    4. D Its sale is not comparable for a home with the earlier use
    Show answer and why

    Answer: D. Its sale is not comparable for a home with the earlier use

    A rebuttable presumption says a sale of a converted property is not a comparable sale for a property with a similar prior use.

    C.R.S. 39-8-108(5)(e)

  7. Which is the best evidence for a foundation problem?

    1. A A dated written repair estimate with photos
    2. B A neighbor's opinion at a barbecue
    3. C A listing photo from five years ago
    4. D A statement that the house feels old
    Show answer and why

    Answer: A. A dated written repair estimate with photos

    Written estimates and photos give dates and a dollar amount, which the assessor must consider. Opinions and old listings are weak.

    C.R.S. 39-5-122(5)(b)

  8. A county board petition for real property must contain what?

    1. A The assessor's home address
    2. B Three neighbors' signatures
    3. C A specific dollar amount offered as the correct value
    4. D A copy of your tax return
    Show answer and why

    Answer: C. A specific dollar amount offered as the correct value

    The statute requires a specific dollar amount. Signatures and tax returns are not required.

    C.R.S. 39-8-106(1.5)

  9. Jordan wins a $40,000 value cut. Using made-up rates of 6.5% and 90 mills, what is the yearly saving?

    1. A $2,600
    2. B $234
    3. C $360
    4. D $26
    Show answer and why

    Answer: B. $234

    $40,000 x 0.065 = $2,600; $2,600 x 0.090 = $234. $2,600 stops before the mill step.

    C.R.S. 39-1-104(3)

  10. On appeal, how far above the county board's valuation may a value be adjusted, as the statute text reads?

    1. A Not more than one percent
    2. B Not more than ten percent
    3. C With no limit
    4. D Not more than five percent
    Show answer and why

    Answer: D. Not more than five percent

    The statute caps an appeal adjustment at five percent above the county board's valuation, except as the law permits otherwise.

    C.R.S. 39-8-108(5)(a.5)

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