BOULDER, CO, Apr 25, 2024—Owning a home comes with many responsibilities, including paying your annual property taxes. These numbers vary from state to state and region to region, and many homeowners may be curious as to how these numbers are determined.
"Unlike the income tax and the sales tax you pay, the property tax is not based on how much money you earn or how much you spend," explains Phil Boren, Broker Associate of RE/MAX of Boulder, Inc.. Instead, this number is based solely on how much the property you own is worth.
The real property tax is an ad valorem tax, meaning a tax based on the value of property.
"Ideally, the owners of property of equal value pay the same amount of property taxes, and the owners of more valuable property pay more in taxes than the owners of less valuable property," says Boren.
So how is this tax calculated? Boren offers an explanation: The tax is calculated using a variety of formulas and is based on a property’s assessed value – its full market value or a percentage thereof – and the tax rate of the taxing jurisdiction, minus any property tax exemptions, such as those offered for the elderly or veterans.
If you have any specific questions on your region's property taxes, call your county tax office to speak with a representative.
For information on real estate, please contact RE/MAX of Boulder, Inc. at philboren@gmail.com, 303-441-5647, or RE/MAX of Boulder, Inc..
Phil Boren is a 26-year veteran real estate Broker and Realtor, specializing in consulting with buyers and sellers in Boulder, CO and along the Front Range of Northern Colorado. Held Real Estate Broker's license in Texas, California and Colorado; Managing Broker for over 200 agents and Brokers for Century 21 and RE/MAX franchises. Award-winning Realtor with experience in management, sales, marketing, relocation, appraisal, REO, BPO's, foreclosures, short sales; previously held the MAI designation from the Appraisal Institute. Experienced in both residential and commercial real estate and achieved the No. 14 individual ranking in the 5-state, Mt. States Region for RE/MAX International in 2001, based on sales volume. Received my BSBA in Finance and Real Estate from the University of Arkansas in Fayetteville, where he was a 4-year starter and 4-year football letterman for Hall-of-Fame coach, Lou Holtz.