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There is no one word to adequately describe 2020 and the negative impact COVID-19 had on residents or small businesses in Weld County. There are, however, many that come to mind, including confusing, frustrating, depressing, scary, life-changing, horrible, and probably a few more attached to words not suitable to print. These feelings are certainly understandable. Some lost friends and family members, others lost jobs, and we all had our way of life altered fighting a virus we can’t see.
Throughout that time, the Weld County Assessor’s Office was revaluing all property and is now asking residents to check their mailboxes for the Notice of Valuation (NOV) postcards that are being sent to owners of real property this week. Glancing at the notice, confusion may again return as some may see their values increase — it’s estimated that on average, both residential and commercial property value rose from the last reappraisal cycle in 2019. Many questions may follow — How did my property value increase? How is my property value determined? How or does my NOV impact my taxes? How can I be sure my property was valued correctly? What can I do if I don’t agree with the valuation?
All good questions. To get those answers and learn more about the NOV, we asked Weld County Assessor Brenda Dones.
Q: Why am I getting a real property NOV?
Brenda Dones: Reappraisals occur every two years, and an NOV is mailed by May 1 of the odd numbered year to real property — residential, commercial, vacant land and agricultural — owners. This year’s NOV captures property values as of June 30, 2020, and captures changes in property values from June 30, 2018, as required by state law.
Q: Why is my NOV important? How will it impact my property taxes?
Brenda Dones: The real property valuation is one piece of information used to determine property taxes. Once these values are set, they are multiplied by an assessment rate —7.15% for residential and 29% for all other property — then by your taxing authorities’ mill levy.
Q: How is the actual value of my residential property determined anyway?
Brenda Dones: The values of residential properties are determined by market sales data from January 1, 2019, to June 30, 2020, and we’re required by state statute to consider the appreciation of a property from the date of the sale to June 30, 2020. That appreciation is known as time adjusted value.
Similar to how a realtor gauges the market, we look by area and see if, over time, the areas show increased value. Is the demand for homes in an area high? Are people paying more for homes in this area in 2020 compared to 2019? We’re required to take a snapshot of these conditions up until June 30 and use it to determine the time adjusted value. That’s why you may notice a difference from the purchase price of your home compared to the current year actual value listed on your NOV. We’re required to determine value based on the time adjusted model as of June 30, 2020, not the original purchase price.
Q: So, if appreciation determines my NOV how come my residential property value went up but my neighbor’s didn’t? We have similar properties in the same area so appreciation should be the same, right?
Brenda Dones: Appreciation is a large part of what makes up residential property values, but it’s not the only factor. To get a total value of a property we consider the square footage of a property, how many buildings are on a property, as well as a home’s many features — does it have a finished basement, garage, a certain number of bathrooms, etc.?
Q: I added onto my house last year. How does that impact value? Does an addition automatically make value increase?
Brenda Dones: If the addition was completed in 2020 then that characteristic will be included in your value. Since we are required to use market data as of June 30, 2020, we estimate your value as if the addition was in place at that time.
An addition can increase your value but may not always. For example, if the addition was repairing a porch or garage to the same specifications as the original — same square footage, features and size, then there will likely be no change in the value due to the addition. However, if you made a one-car garage into a two car, or built a larger porch, that may make your value increase.
Q: I’m a commercial property owner but was hardly at my business last year due to the pandemic. Yet my value remained high. How can this be?
Brenda Dones: We’re not valuing business operations or financial performance. What we value is the actual building and the land it sits on. Commercial values are primarily based on sale prices and lease rates. So, we evaluated whether attempts to contain COVID-19 restricted the use of properties and if those restrictions impacted real estate values. Overall, most commercial property owners will see an increase from the prior cycle, but some increases have been tempered by a change in activity in the market.
Q: Is there an easy way to view my property value and compare it to others in my area?
Brenda Dones: Yes. We have the sales search tool on the Weld County Property Portal. This tool allows you to view the purchase price and time adjusted value of your property and compare it to similar properties in your area. You can access this tool by pulling up your property by owner name or address then clicking the Search for Similar Sales tab.
Q: I’ve looked closely at my NOV and at the property portal and don’t agree with my value or I have more questions. What can I do?
Brenda Dones: State law allows real property owners the option to protest their NOV during the month of May. While the last day to protest is June 1, due to a county closure on the date*, the Assessor’s Office believes the final date should be when the county is open. So, we’ll be accepting protests through June 2. Protests must be made, postmarked or electronically filed by midnight on June 2, 2021, and can be made by calling the Assessor’s Office and making an appointment to speak with an appraiser. Protests can also be made by mail, fax, email or via online appeal. Instructions can be found on your NOV and on our website.
Q: What happens after I protest my value?
Brenda Dones: We don’t make a decision right on the spot. We listen to you or review the information you have submitted and take time to analyze your concerns. We will either adjust or deny the appeal and we will notify you by mailing the decision — also known as a Notice of Determination — by June 30. The decision will also list a new value or the reason why the value didn’t change.
Values in the NOV become property tax next year after local governments set their mill levies. That’s why those with concerns about their value should let us know so we can review them and get it right.
*As it does every year, the Board of Commissioners decides the holiday schedule in December. This schedule consists of 12 days. Some of these days rotate, and this year June 1 extends observance of Memorial Day.
Curious about how the holiday schedule is established? So are we! But that’s for another story.
By Baker Geist, Weld County Communications Specialist
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