Assessor’s Office Appeal History

and Valuation Projections

2011

2/3/2011 1

How did I become the Eagle County

Assessor?

2/3/2011 2

What Does the Assessor’s Office Do

• Discover

• List

• Classify

• Value

• Map

• Reappraise

• Answer Appeals

• Public assistance

• Taxable property is divided into two classes, real property and personal property.

• Real property includes land and all buildings, structures, and improvements to the land.

• Personal property is machinery and equipment, fixtures, furniture, and other items that are movable in nature used by a business.

Now that you have a better idea of what the Assessor does; here are a few things that the Assessor does not do. Contrary to popular belief, the Assessor:

• - does not set the tax rate • - does not create or send out tax bills • - does not collect taxes

• Tax rates for Eagle County and all 86 tax entities within the county

boundaries are set each year by their respective appointed boards or elected officials and are based on the budgets they pass to fund programs and services.

• The County Treasurer is responsible for using the tax rate and the assessment roll from the assessor’s office to create and send out tax bills to all county property owners. The Treasurer is also responsible for collecting property taxes.

Myths and Legends

What role does the Assessor play in your taxes?

The Eagle County Assessor Certifies Values to 86 Taxing Authorities Annually

Towns/Cities 7

School Districts 4

Metropolitan Districts 37

Park & Rec Districts 3

Fire/Ambulance Dist 6

Water & San Districts 6

Conservation Districts 2

E.C. Health District 1

Misc. Districts 14

Eagle County 6

Total Districts 86

What is a Mill Levy?

• Mill: A monetary unit equal to 1/1000 of a dollar, or 1.0 mill is equal to $1.00 for every $1,000 of assessed value

• Levy: To impose or collect.

• Mill Levy Calculation is simple:

– Estimated Budget $175,000 Divided by Total Assessed Value of $3,500,000 = .05000 or 50.00 Mills

– Revenue needs are determined by each tax entity, based on past revenue collections with specific revenue limitations applied. (Which may vary, entity to entity) The best sources for specific budget and revenue information is the entity itself or the Colorado Division of Local Government.

Legal Limitations on Property Tax

• 1982 Gallagher Amendment to the Constitution

– Requires that during re-assessment periods, the assessment rate for residential property be adjusted, on a State-wide basis, so that:

• The ratio of residential assessed value to non-residential assessed value is maintained.

– Since 1983, 45% residential value vs. 55% value for all other classes

– In 1983, residential assessment rate was 21%, while all other classes were 29

2/3/2011 7

Legal Limitations on Property Tax

Gallagher Amendment (cont.)

History of the Residential Assessment Rate

YEARS RES RATE CALCULATED

1983 - 1986 21.00%

1987 18.00%

1988 16.00%

1989-1990 15.00%

1991-1992 14.34%

1993-1994 12.86%

1995-1996 10.36%

1997-1998 9.74%

1999-2000 9.74%

2001-2002 9.15%

2003-2004 7.96%

2005-2006 7.96% 8.17%

2007-2008 7.96% 8.19%

2009 7.96% 8.91%

Note: Beginning in budget

year 2006 the Legislative

Council indicates that the

residential assessment rate

should have increased to

maintain ratio but did not due

to prohibitions in the TABOR

Amendment.

Tabor/Gallagher Conflict

How are Property Taxes Calculated?

Commercial

or Vacant

Residential

Property

Market Value or

Actual Value

Assessment Ratio 29% 7.96%

Assessed Value

Mill Levy

Taxes

Approx Town of Eagle Mill

Levy

Why does commercial/vacant pay

more taxes?

Statute provides that the actual value is not the taxable value. Rather, the taxable value is a percentage of the actual value. The percentage is called an “assessment rate or ratio” and the resulting value is the assessed value. Note: To calculate the tax, move the decimal over 3 places to the left and multiply by the assessed value.

$145,000 $39,800

57.156 57.156

$2,274

$8,287

TABOR Amendment

• The market approach to value is the only valuation approach which can be considered in estimating the value of residentially improved property.

• Vacant land value is determined based on comparable sales (market approach).

• Commercial property valuation is based on the cost, market or income approaches to value.

• Agricultural land valuation is based on the lands productive capacity (residential structures are valued with the market approach and agricultural buildings; barns, sheds etc, are valued using the cost or market approach)

Assessment date vs. Appraisal date

Notices of Value (NOV) are mailed May 1 every year. 2009 was a

reappraisal year, all property received NOV’s. For the intervening year,

2010 only Property which has changed, i.e. new construction, remodels,

demolition or reclassification received notice.

The appraisal date and assessment date are different. The

assessment date is January 1 (12 noon) of each year. The

assessment date determines how individual property is classified

and valued for the next year, based on the past June 30 appraisal

date.

Sales Time Frame

(Base Period) Jan. 1, 2009 – June 30, 2010 If insufficient Sales data, can go as far back as 5 years

Appraisal date June 30, 2010

Vail MLS and County Sales Graphs

Total Transactions 2005 - 7/2010

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2005 2006 2007 2008 2009 2010

Year

To

tal N

um

ber

of

Sal

es

Total Sales Volume 2005 - 7/2010

$0.00

$500,000,000.00

$1,000,000,000.00

$1,500,000,000.00

$2,000,000,000.00

$2,500,000,000.00

$3,000,000,000.00

$3,500,000,000.00

2005 2006 2007 2008 2009 2010

Year

Sale

s $

$$

Average and Median SP per year

Based on Sales of all Property Types

$-

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

$3,000,000.00

2006 2007 2008 2009 2010

Year

Sale

s $

$$

Median

Average

Eagle County Total Sales Transactions 2001 -2010

0

1000

2000

3000

4000

5000

6000

7000

2002 2004 2006 2008 2010

June 30 Appraisal Date

(Sales data is from the preceeding 18 months)

Nu

mb

er

of

sale

s

Building Permit and New Construction $$$

2005 - 2010

New Construction Assessed Value 2005 - 2010

$0.00

$20,000,000.00

$40,000,000.00

$60,000,000.00

$80,000,000.00

$100,000,000.00

$120,000,000.00

$140,000,000.00

2005 2006 2007 2008 2009 2010

Year

Assessed

V

alu

e

Building Permits County Wide

2007 - 2010

0

500

1000

1500

2000

2007 2008 2009 2010

Year

Perm

it V

olu

me

Building Permits by Jurisdiction

2007 - 2010

0200400600800

1000120014001600

Avo

n

Bas

alt

Eagl

e Cou

nty

Eag

le

Gyp

sum

Vail

Total

Nu

mb

er

of

Perm

its

2007

2008

2009

2010

Recent Sales Activity Eagle and Roaring

Fork Valleys • List prices and final sales have been falling since the Fall

of 2008 with the downtrend continuing to date. • Sales volume began to drop in 2006 following the largest

sales transaction year, 2005 • Eagle Valley 30% +/- • Roaring Fork Valley 35% +/- • With limited sales data available across the county, each

sales transaction is being verified and researched extensively by the assessors staff

• Available sales data includes short sales and foreclosure sales

• Formation of a steering committee/advisory board comprised of Real Estate Professionals

Single Family Valid Sales Data 2005 - 2010

• According to the most recent market analysis the overall local residential market change is determined to be anywhere from -30% +/-.

• Condominium property values have fallen -30% +/-.

• Single Family/Townhomes have fallen -28% +/-.

• Vacant land has experienced a similar decrease of -50% +/-.

• Commercial property has not been fully analyzed to date.

Eagle County Value Change 1993 – 2010

Eagle is the 10th largest county in real property assessed value in Colorado.

Taxable Value

Increased from

$700 million to 3.6

billion from 1993

to 2010 in Eagle

County.

Projected

assessment for

2011 is based on

an estimated 30%

reduction in

residential

property value

Eagle County Assessment 1993-2011

$-

$500,000,000.00

$1,000,000,000.00

$1,500,000,000.00

$2,000,000,000.00

$2,500,000,000.00

$3,000,000,000.00

$3,500,000,000.00

$4,000,000,000.00

1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Year

Assessed

Valu

e

Appeals History

• Appeals in Eagle during peak (reappraisal) years have grown from 5100 to over 8000.

• During static (flat) market periods appeals tend to go down.

• Appeals by Abatement have more than doubled in the past two years.

Appeals History 1999 -2010

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Year

Abatement Appeals History 2005 - 2010

0

50

100

150

200

250

2005 2006 2007 2008 2009 2010

Year

Nu

mb

er

of

Ab

ate

men

ts

Appeal Comparison 2005-2007-2009

2005 Total ASR Appeals 2550 2007 Total ASR Appeals 5863 2009 Total ASR Appeals 8087

Adjusted 1484 58% Adjusted 2875 49% Adjusted 3607 45%

Denied 1035 41% Denied 2965 51% Denied 4478 55%

Withdrawn 31 1% Withdrawn 23 0% Withdrawn 2 0%

2005 Total CBOE Appeals 495 2007 Total CBOE Appeals 1548 2009 Total CBOE Appeals 2555

Adjusted 181 37% Adjusted 721 47% Adjusted 1495 59%

Denied 305 62% Denied 813 53% Denied 1035 41%

Withdrawn 9 2% Withdrawn 14 1% Withdrawn 25 1%

Filed Foreclosures

Sold/Deeded Foreclosures

Timeshare Foreclosures

Foreclosure Summary

1983 - 2010

Foreclosures/Short Sales in the News and

Listings • FORECLOSURES: UP & DOWN

Foreclosure filings in Colorado in the second quarter fell 15.7%, to the lowest level in five quarters. Filings were significantly down on the Front Range, with Denver dropping 30%, but filings in rural areas were up, especially on the Western Slope, with Eagle County filings up 50%; Mesa County up 40%; and, Summit County up 23%. Source: August 6, 2010 Alpine E-Line

• The assessors staff is analyzing sales after foreclosure and short sales data to determine if either situation has contributed to the declining real estate market in Eagle.