Real and Personal
Colorado is one of only 13 states that do not impose a state property tax. Local governments assess property taxes primarily to fund public schools and local government services.
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.
A simple formula is used to determine property tax liability. The actual value, as determined by the local assessor, is multiplied by the assessment rate mandated by the state legislature, based on the classification assigned to the property by the local assessor. The figure resulting from that calculation is the assessed value of the property.
Property Tax Assessment Rates
| Property Class |
Assessment Rate & Method |
|
Residential |
7.96%* |
|
Commercial |
29% |
|
Industrial |
29% |
|
Personal |
29% |
|
Mixed-Use |
7.96% for residential portion, 29% for commercial portion |
|
Vacant Land |
29% |
|
Agricultural |
29%, with actual value based on capitalizing the average net income for the preceding 10 years at the cap rate of 13% (statutory) |
|
Producing Mines |
Previous year's production value, 25% of gross proceeds, or 100% of net proceeds, whichever is greater |
|
Oil and Gas Leaseholds and Lands (Primary Recovery) |
87.5% of oil or gas sold or transported from premises, with modifications |
|
Oil and Gas Leaseholds and Lands |
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
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).
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. Local governments, including municipalities, counties, and school districts, have the option to negotiate up to 50 percent rebate or credit on their portion of personal property tax as an economic development incentive.
Provided that state revenues produce a surplus, business taxpayers receive a credit against their state corporate income tax for business personal property taxes paid to Colorado municipalities.