A commercial property in Denver, Colorado has an actual value of $800,000 as determined by the county assessor. The commercial assessment rate is 27.9% and the total mill levy for the property is 80 mills. What is the annual property tax owed on this property?
Correct Answer
B) $17,856
Step 1 — Calculate assessed value: $800,000 × 27.9% = $800,000 × 0.279 = $223,200. Step 2 — Calculate property tax: $223,200 × (80 mills ÷ 1,000) = $223,200 × 0.080 = $17,856. The annual property tax is $17,856. Colorado commercial properties are assessed at 27.9% of actual value under C.R.S. § 39-1-104.2, and the tax is calculated by applying the mill levy (expressed as dollars per $1,000 of assessed value) to the assessed value.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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.
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Previous Question
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?
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A Colorado homeowner disagrees with the county assessor's valuation of her property. She believes the actual value assigned is significantly higher than the property's true market value. What is the first step she should take to formally challenge the assessment?