In Colorado, what is a 'mill levy' as it applies to property taxation?
Correct Answer
D) The rate used to calculate property tax, expressed as dollars of tax per $1,000 of assessed value
A mill levy is the property tax rate expressed in mills, where one mill equals $1 of tax per $1,000 of assessed value (or $0.001 per $1 of assessed value). Local taxing authorities (school districts, municipalities, counties, special districts) set their mill levies, which are combined to form the total mill levy applied to a property's assessed value to calculate the annual property tax bill. This is the standard Colorado property tax calculation framework under C.R.S. § 39-1-111 et seq.
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Related Concepts
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
The income approach estimates a property's value based on the income it generates by converting net operating income into a value estimate using a capitalization rate. It is the preferred method for income-producing properties.
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In Colorado, property taxes are based on which of the following values?
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Maria owns a single-family home in Jefferson County, Colorado. The county assessor has determined her property's actual value to be $500,000. Which of the following correctly describes the next step in calculating her property tax bill?