With property values on the rise, especially in the Denver metro area, property taxes are also increasing. So how can you ensure that you aren’t overpaying as a result of overvaluation or a mistake by the appraiser? First, you need to determine why your property taxes have increased, and then you can determine whether there’s enough support for you to appeal the assessor’s valuation of your property.

Step 1: Identify why your property taxes increased. If your property taxes went up this year, is it because your property increased in value or because of what is known as a “mill levy”? A mill levy is usually passed via ballot to fund a specific civic project such as education or library systems. Increases in value are assessed by local appraisers, so a valuation increase can be appealed, whereas a mill levy increase cannot.

Step 2: Learn about the appeal process. Property taxes are assessed at the county level and so the appeals process is established by your county and may vary in particulars from county to county. If you can provide the required documentation and follow the instructions for the appeals process, you have a good chance of your appeal succeeding.

Here are five tips to help you with your appeal regardless of which county you live in:

1. Follow the directions for the appeal process exactly. For example, Colorado requires that you use comparables from the 18-24 months prior to when the property was revalued (this always happens in odd years). Therefore, to appeal a value assigned in 2017, you’d need to use comparables from June 2014 to June 2016.
2. Meet the deadlines. There is usually a small window of time to appeal your taxes each year, so look up the dates that your appeal documentation must be submitted by and have all of your paperwork submitted on-time.
3. Be accurate. Find at least three comparables to support your revaluation argument and make sure that the comparables you select are appropriate comparisons. If you are contesting the valuation of a commercial property, then providing lease agreements from your tenants can support an income approach appeal.
4. Use hard data. Your appeal will have a much higher chance of success if it is supported by statistics (e.g., hard sales or income data) rather than simple assertions.
5. Neighborhoods with variety are easier to appeal. If you live in a planned subdivision where the houses are fairly uniform and consistent, it will likely be harder to appeal the assessor’s original valuation because there will be less variation in prices than in neighborhoods where the houses are less uniform.

For more specific information about the appeals process for Colorado property taxes, check out our previous blog series the covers the following: the basics and valuation; commercial vs. residential taxes; appealing your taxes; and the Denver appeals pilot program.