This year, Denver County is testing a new system for appeals, which reduces the number of appeals that taxpayers need to file and also gives them more time to file the initial appeal. Under this new system, valuations from the assessor are still mailed out by May 1; however, property owners have until November 15 to file a single protest with the Board of County Commissioners. The board cannot issue a decision on the appeal without holding a hearing that may be conducted by the board itself or independent referees, which it has appointed. You must be given the opportunity to be present. If you fail to appear, the case may then be dismissed. It is important to note that this dismissal cannot be appealed.

The board is required to act within six months of the date on which the protest is filed; however, if no written decision has been issued by December 1, then the protest becomes a petition for abatement or refund. At this point, you have 30 days to choose to appeal to either the Board of Assessment Appeals or the Denver district court.

If Denver County finds this process works more smoothly, then it is possible that it will be adapted by other counties across the state in the coming years, leading to a simplification of the appeals process for properties owners statewide.

Arbitration:  A No Lose Strategy If Your Appeal Is Rejected.

It is not widely understood that if you appeal your taxes and your appeal is rejected you then are given two options.  The first option is to appeal this decision in Court. This will typically require you to retain an attorney and be prepared to spend some money to obtain a reduction in your assessment. For very large properties with large sums of money at stake this may be a worthwhile strategy, but in the majority of cases it may not prove to be realistic. The second case is to opt for “binding arbitration”.  There is a non-refundable fee ($100) that you must pay if you elect this option. Typically the arbiter is a neutral appraiser acceptable to both parties. Both parties must agree to accept whatever value the arbiter concludes after reviewing evidence presented by both sides.  What is important to realize is that the arbitration process cannot raise the value of your property from what the County originally assessed.  It can only be lowered.  If you think you have a good case and are willing to risk the $100 fee then you have nothing to lose but something to gain by electing this binding arbitration option.

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender.  [google_authorship] has been in the private capital lending business for 41 consecutive years.