Tax Impact
FROM 5A & 5B
What is the Tax Impact?
The process for assessing property taxes is established by the state of Colorado. County assessors are mandated to reappraise all properties every other year. 2023 is an appraisal year and any adjustments in assessed value will take effect in the 2024 tax year. The property assessment process is the basis for generating property tax revenues that pay for schools, roads, fire protection, police protection, and other local services. All of the revenue generated by property taxes stays within the county. Property taxes do not support any state services.*
Calculation of Property Taxes*
Actual Value
Actual value is market value
Assessment Rate
A percentage dependent on the property classification set by the state
x
Assessed Value
The value on which a property is taxed
=
Tax Rate
Levies imposed by taxing districts
x
=
Property
Tax
*Source: Eagle County Assessor
This year is different! The Eagle County School District (ECSD) has an opportunity with voter approval this November 2023 to benefit from Eagle County’s increased assessed property values to fund the mill levy opportunity and finance building employee housing and early childcare education facilities without incrementally adding to property taxes. ECSD does not receive a windfall from increased assessed property values, but will benefit from the overall increase in property tax collections due to the increase in property values.
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Because education funding in Colorado is capped by the School Finance Act and its complicated formula, ECSD will reduce its mill levy next year to stay within the requirements of capped funding.
Three examples for a home in Eagle County valued at $1 million prior to the 2023 reappraisal process.
EXAMPLE 1 - 2023 TAX
EXAMPLE 2 - WITHOUT 5A & 5B
In 2023, every property in Eagle County was reassessed and likely saw an increase in property value. If we assume the average residential increase in value is 45%, that same $1 million home is now valued at $1, 450,000.
To reduce the statewide impact of increased values on property owners, the State has lowered the assessment percentage rates to help ease tax burdens in this inflationary time. All residential property was lowered from 6.95% to 6.765%, Agricultural from 29% to 26.4%. All other types of property, including vacant land, commercial and industrial, were lowered from 29% to 27.9%.*
In 2024, our homeowner will pay $327 more in taxes ($27 a month) than they did in 2023 for the school district because of the increase in value of their home. In this example, the home value increased, Colorado’s residential assessment rate decreased, and the ECSD mill levy decreased in order for the district to stay within the requirements of capped funding. The homeowner’s property taxes increased because of the significant increase in property value.
EXAMPLE 3 - WITH 5A & 5B
This example shows what happens when 5A and 5B are approved by voters on Election Day. The home value and state assessment rate remain the same, yet ECSD must reduce its total mill rate from 24.53 in 2023 to 22.53 in 2024 in order to stay within the capped funding requirements. There is no windfall for the school district due to increased property values.
With approval of 5A & 5B, our homeowner pays $505 more in property taxes in 2024 than they did in 2023. This is just $178 more per year than they paid in Example 2 without the approval of 5A and 5B, or just $15 more per month. For a relatively small incremental amount of property taxes when compared to Example 2, ECSD will have the funds to do all the things promised for 5A and 5B. Property taxes are increasing no matter what in 2024, and will only increase $15 more per month for our homeowner with 5A and 5B approval, than without.
VOTE YES
By approving 5A, voters will support recruiting and retaining teachers and staff, enhanced school safety and security, additional mental health support for students and programs such as art, music, technology and physical education.
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With voter approval of 5B, ECSD will build critically needed employee housing and expand early childhood care and education facilities to serve young families in our community. These investments are needed in our schools, for our kids, and for our community.