More area homes seeing assessments drop for 2000

More area homes seeing assessments drop for 2000

May 17, 2001

By Jim Mimiaga
Journal Staff Writer

A soft real-estate market in Southwest Colorado may be the reason why many more Montezuma County homeowners received lower property-tax bills for 2000, the county assessor’s office reports.

Out of the 6,005 residential properties in the county, 1,173 owners saw their 2000 tax bill drop by more than 5 percent. The number of reductions was up one-third when compared to 1999 tax bills, but no definitive pattern has emerged explaining the drop in assessed valuations, said County Assessor Bob Cruzan.

"It was more than I anticipated," Cruzan said. "As to why, we are not totally sure, but the market in this corner of the state may not be as strong as in the rest of the state."

Cruzan said his office is investigating what the specific reasons are for the lowered assessed valuations. A new county computer system that compiles a new taxing formula went on-line this year, and the office is still becoming familiar with analyzing its data, he said.

"There are some indications that last year’s valuations were too high," Cruzan said. "It is puzzling. It is not for certain types of houses or certain traits; no real pattern has emerged as to the reason."

Nevertheless, more assessed valuations on residential property increased than decreased for the 2000 tax bill. A total of 3,873 homeowners in the county saw their home’s value increase by more than 5 percent, and 959 owners saw their valuation fluctuate by plus or minus 5 percent, considered no change.

Also, the assessor’s office is working on implementing a property-tax exemption passed by Colorado voters last May. Referendum A allows seniors 65 years and over who have lived in their home for the last 10 years to reduce the home valuation assessed for tax purposes by half, up to $100,000.

Qualifying homeowners with actual home values of less than $200,000 will be taxed for half the value. Married couples qualify if one person is 65 or over.

The loss in total collected tax revenues created by values forgiven under Referendum A will be backfilled by the state, Cruzan said, so there will be no reduction in county coffers as a result.

The tax deduction goes into effect in 2002, and will be reflected on the 2003 tax bill. Those who qualify will receive an application from the assessor’s office next spring.