Navigating the realm of property taxes in Colorado Springs can seem complex, but with a clear breakdown, homeowners can manage their responsibilities confidently and effectively.This blog post simplifies property taxes for Colorado Springs residents, details their calculation, reveals where your money goes, and provides tips for potential savings.
What Are Property Taxes?
Property taxes are local taxes levied by counties and municipalities. In Colorado Springs, these taxes contribute to various public services like schools, roads, and emergency services. We calculate property taxes based on the assessed value of your home and the mill levy that various taxing entities apply.
How Do We Calculate Property Taxes in Colorado Springs?
- Assessment of Property Value: Every two years, the El Paso County Assessor assesses the value of each property. The value should reflect the market value of the property as of the assessment date.
- Mill Levy: Different jurisdictions such as the city, county, and school districts set the tax rate applied to your property value. As a result, this rate directly influences your annual property tax amount. One mill equals one dollar of tax for every $1,000 of assessed property value.
- Calculation: To calculate your property tax, multiply the assessed value of your property by the mill levy. The result is your annual property tax liability.
Reference: merriam-webster.com/dictionary/jurisdiction
Where Does Your Tax Money Go?
Various sectors receive the funds collected from property taxes:
- Education: A significant portion supports public schools in the Colorado Springs area.
- Infrastructure: Roads, bridges, and public transit systems benefit from your property taxes.
- Public Safety: Fire departments and police stations receive funding to maintain safety and order.
- Recreational and Cultural Services: Parks, libraries, and cultural events also receive a portion of these funds.
Tips for Saving on Property Taxes in Colorado Springs:
- Homestead Exemption: Colorado offers a Homestead Exemption for qualifying older people and disabled veterans which can reduce the taxable value of their homes.
- Appeal Your Property’s Assessed Value: If you believe your property’s assessed value is too high, you can appeal to the County Assessor’s Office. Successfully appealing can lower your tax bill.
- Understand Tax Breaks for Improvements: Certain home improvements may qualify for tax breaks. Researching local tax policy updates can lead to potential savings.
Final Thoughts
Understanding your property taxes in Colorado Springs doesn’t have to be daunting. By understanding how to calculate your taxes, where the funds go, and how to potentially reduce your tax burden, you can take charge of your property tax obligations. If you’re considering buying a home in Colorado Springs or just looking to get a better handle on your current tax situation, contact Fortune Realty for assistance.
