eForce
Real & Personal
Property Tax Assessment Rates Colorado property taxes have three main components: the actual value of property, the assessment rate, and the mill levy. Local assessors establish the actual value of the property and the property's classification (residential, commercial, or personal).
The Colorado Legislature determines assessment rates, and local taxing entities determine mill levies. The assessment rate for commercial and industrial property is set at 29 percent of market value. The residential rate is adjusted every odd-numbered year in order to maintain a balance between the tax burden on residential and all other properties. The residential assessment rate is 7.96 percent for 2016 assessments. The average mill levy in Metro Denver was 94.985 per $1,000 of assessed value in 2016.
| Property Class | Assessment Rate & Method |
|---|---|
| Residential | 7.96%* |
| Commercial | 29% |
| Industrial | 29% |
| Personal | 29% |
| Mixed-Use | 7.96% for residential proportion, 29% for commercial |
| Vacant Land | 29% |
| Oil and Gas Leaseholds and Lands (Primary Production) | 87.5% of oil or gas sold or transported from premises, with modifications |
| Oil and Gas Leaseholds and Lands (Secondary Production) | 75% of oil or gas sold or transported from premises, with modifications |
| State Assessed Property | 29% |
| Exempt Property | Assessed at appropriate rate, but not taxed | *Residential assessment rate fluctuates from year-to-year |
Business Real Property
Legislation passed in 2008 increases Colorado's business personal property tax exemption to $7,000 over five years. From the tax year beginning Jan. 1, 2015, onward, the exemption will be increased biennially to account for inflation.
Business real property is taxed at a standard 29 percent assessment rate, with the exception of producing mines and oil and gas leaseholds and lands (as described in above table). Legislation adopted in 2012 allows Colorado cities, counties, and special districts to fully waive their portions of the business personal property tax for qualifying companies as an economic development incentive.
Personal property (machinery and equipment) used in commercial and industrial operations is also assessed at 29 percent of actual value, based on replacement cost, expected economic life of the asset and other factors. Business personal property with an economic life of one year or less, or with acquisition cost of $250 or less, is exempt from taxation. Computer and telecommunications equipment have accelerated depreciation schedules and reduced residual values.
