How the Gallagher Amendment Affects Denver Property Taxes

October 12, 2017

A little-known tax provision in the state constitution, known as the Gallagher Amendment, is responsible for giving homeowners a much-needed tax break as home values skyrocket. Every odd numbered year, Colorado counties assess property values across the state to come up with a new “market value,” otherwise known as the “actual value” that also remains in effect in the even numbered year as well. These market values for properties are published on May 1st. Residential property owners can appeal these new assessments, but the deadline to do so is June 1st. So, you may have to wait several more months to appeal the assessed property value, if you didn’t act on it this year.

The Gallagher Amendment Explained

How the Gallagher Amendment Affects Denver Property Taxes | Denver Property Tax Appeal Attorney

How the Gallagher Amendment Affects Denver Property Taxes | Denver Property Tax Appeal Attorney

It’s important to explain the Gallagher Amendment to the Colorado Constitution, which was enacted in 1982, because it impacts the determination of the actual value of property and the valuation for assessment of any property. In Colorado, the commercial property assessment ratio is fixed at 29 percent. In 1982, voters also determined that commercial property owners should pay 55 percent of all property tax revenues collected, while the remaining 45 percent should be paid by residential property owners. The assessment ratio for residential property had been 7.96 percent, but in order to deal with fluctuating real estate prices, the state performs its study to determine if the residential assessment ratio should be altered to offset any increase or decrease in property values. This year the residential assessment ratio is being lowered to 7.2 percent to account for the rise in residential values relative to commercial property values. The explosive housing market growth along the Front Range is said to be responsible for pushing home values so high.

How the Gallagher Amendment Has Impacted Property Taxes in Colorado

  • It has helped make the county assessor’s methodology for determining the actual value of a property easier. Before the amendment was added to the state constitution, the assessor had to factor in several variables, whereas now they just use three: cost, market, and income.
  • It made it so the actual value of the residential property would be factored by the cost and market approaches to appraisal only.
  • It declared certain property exempt from taxation, including household furnishings, personal effects not used in procuring income, business inventory, livestock, and agricultural equipment.

Contact a Denver Property Tax Appeal Attorney at Downey & Associates, PC

If you would like to appeal your personal property tax assessment, contact our Denver Property Tax Appeal Attorney at Downey & Associates PC. From our law offices in Englewood, we serve clients throughout Colorado, including the Greater Denver area, Colorado Springs and Fort Collins, and the mountain and rural counties as well. We can help you in all stages of a personal property tax protest and appeal process. Call us today at 303-813-1111 or send us an e-mail by clicking on the “Contact Us” tab on this page.

Categories: Property Tax Appeal, Tax Appeals