Denver Property Tax Assessment Presentation 4/25/2017

Real property notices of value for 2017 were mailed to property owners on or before May 1 and included the assigned value and classification of the property as of June 30, 2016 per statutory guidelines. The value and classification will be used to calculate the property taxes payable in 2017. Property owners who believe the value and/or classification are not accurate have the right to protest.

On Tuesday evening 4/25/2017, over 70 Denver apartment owners attended a private event hosted by Greg Johnson and Kyle Malnati, multifamily brokers with Calibrate Real Estate. The “main event” for the evening was a detailed presentation by Denver County’s Assessor, Keith Erffmeyer, which included everything you need to know about property taxes.

Tax Event – Sales Comp Book 4.25.17

Tax Event – Final Presentation 4.25.17

We recorded the event so that you could watch the presentation as you fill out your Denver County Property Valuation Protest forms. Our hope is that you can navigate the content of the video by using the following Table of Contents below:
– 00:01 – Introduction of Keith Erffmeyer, Denver County Assessor
– 02:00 – Assessment Basics (How is residential real property valued?)
– 02:15 – “Base Year Concept” described for Denver apartment buildings
– 04:35 – Market Approach for Denver apartment buildings
– 05:17 – Date of Value = June 30, 2016
– 05:27 – What is Mass Appraisal? (IAAO = International Assoc. of Assessing Officers)
– 06:14 – Denver County sales verification process for apartment complexes
– 09:15 – Valuation Models: intended to mirror the motivations of Buyer/Seller
– 10:01 – Developing a Valuation Model: 3 different models for multifamily property
– 11:05 – Testing a Valuation Model: evaluate model performance
– 13:16 – Model #1 described for Denver apartment buildings (2-4 units)
– 14:13 – Model #2 described for Denver apartment buildings (5+ units, not PBG)
– 15:12 – Time Trending: Assessor HAS to trend to date of valuation (6/30/2016)
– 17:52 – Multiple Regression Analysis
– 21:07 – Sample Model #2 coefficients for 2017
– 23:37 – Why is “CTERM” so important?
– 24:07 – Sample Notice of Valuation (N.O.V.)
– 26:13 – 2017 Median Changes (percentage change in actual value from 2015 to 2017)
– 28:25 – Gallagher Amendment (Colorado 45%/55% value allocation statewide)
– 29:30 – Apartments are “residential” (taxed at 7.20% NOW, was 7.96% from 2003-2016)
– 30:55 – Questions from the audience and answers from Keith Erffmeyer
– 32:30 – Calculating Taxes (Residential vs. Non-Residential)
– 33:35 – Denver County Assessment Cycle (Alternate Procedure)
– 37:42 – Protesting Suggestions (See 8 Tips below)
– 40:00 – Property values and process of delivering tax bills
– 42:34 – End

BONUS: 8 Tips directly from the Denver Assessor if you’re going to protest your valuation
1. DON’T consider the current market
2. DO remember the date of value (6/30/16)
3. DON’T protest the taxes (you technically don’t know what they’re going to tax you)
4. DO consider the value
5. DON’T consider the rate of increase
6. DO review the property characteristics
7. DON’T simply say “the value is too high”
8. DO provide evidence: sales, photos, descriptions of issues negative to the property, estimates of cost to cure, rent rolls, etc.

Greg Johnson & Kyle Malnati (303-482-2828)
Calibrate Real Estate
900 East Louisiana Avenue, #203, Denver, CO 80210
www.DenverApartmentBuildingsForSale.com
www.calibratere.com

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