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?

Correct Answer

D) Multiply $500,000 by the residential assessment rate to arrive at the assessed value

In Colorado, after the county assessor determines a property's actual value, the next step is to multiply that actual value by the applicable assessment rate to arrive at the assessed value. For residential property, the assessment rate has been set at 6.95% (as adjusted by recent Colorado legislation). The assessed value is then multiplied by the total mill levy (divided by 1,000) to determine the annual property tax. This two-step process — actual value × assessment rate = assessed value; assessed value × mill levy / 1,000 = tax — is established under C.R.S. § 39-1-104.