[rank_math_breadcrumb]

News

Colorado man’s property tax doubled, despite home having burned to the ground — why taxes are suddenly soaring

Updated: 21-10-2024, 03.48 AM

Colorado man’s property tax doubled, despite home having burned to the ground — why taxes are suddenly soaring

Colorado man’s property tax doubled, despite home having burned to the ground — why taxes are suddenly soaring

John Pellouchoud hasn’t had good luck with his 35-acre lot in Boulder County, Colorado. In 2013, floods ripped through Lefthand Canyon and swept him away. Somehow, the firefighter survived. Then, in 2017, when he was away helping a friend recover from a flood in California, a fire destroyed his home. Since then, he’s battled both cancer and strokes.

For the last seven years, the lot has sat empty, with only the foundation remaining of the house he lived in for 30 years. But now he’s been hit with another blow: his property taxes have soared.

Don’t miss

  • Accredited investors can become the landlord of Walmart, Whole Foods or Kroger — and benefit from regular distributions without lifting a finger. Here’s how

  • Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month

  • These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how

“It doesn’t make sense because the tax bill valued my land at over three times my neighbors’ land,” Pellouchoud told CBS News. The two lots are similar acreage and both oddly shaped. The properties sit in a canyon, so much of the land is unbuildable and difficult to access.

After two appeals, Pellouchoud’s neighbors were able to reduce their tax bill. But there’s a big difference between the two properties: the neighbors’ land also includes a large home, not just a foundation.

But as it turns out, Pellouchoud isn’t the only homeowner in Boulder County facing a steep increase in their property taxes — here’s why.

Tax assessment office stretched too thin

In Colorado, home prices are assessed every two years for tax purposes. As the values increase, so do the taxes. Recently, Boulder County saw a massive increase in property values because the new appraisals were based on home sales during the pandemic, when demand in Boulder County surged. Boulder County Assessor Cynthia Braddock told CBS the median increase in the county was 35%.

“It is painful to send out an assessment that large, knowing it will impact people’s ability to pay their taxes,” Braddock told reporters.

Out of 110,000 residential properties in Boulder County, the assessor says 25,000 property owners challenged their appeals. This made it harder for the tax assessment office to dig deep into each appeal. But she admits it looks like the office may have missed something with Pellouchoud’s property, given so much of it is unbuildable.

“In a typical year, we can dig into each appeal. This cycle was different; so much value increase, so many people appealing justifiably, that we couldn’t review everything deeply. We couldn’t pull up maps or go into the field like we normally do,” Braddock said.

And so while Pellouchoud’s first appeal was flatly denied, Braddock says his tax bill will get another review. And this time, it’s expected to be cut in half.

Although the lot has sat vacant since the 2017 fire, Pellouchoud still plans to rebuild, some day.

“I just really love this land,” he said, looking out over his property. “I want to die here. This is my land.”

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

What to do if you’re faced with a massive increase in property taxes

Property taxes are typically assessed based on the value of a property. This is determined by a tax authority who reviews property values on a periodic basis. How often assessments occur varies by state — in Colorado it’s every two years, while Ohio reassesses every six years.

The assessed value is then multiplied by the area’s tax rate to determine how much each homeowner owes. If your property taxes seem unusually high, homeowners can request a review or appeal. The appeal process varies by county, but typically involves submitting a formal appeal form to your local tax assessor’s office often within a specific time frame — usually within two weeks to a month.

Before the appeal, gather as much information as possible to support your claim. This might include recent property appraisals, records of comparable home sales in your area, or evidence of property damage that might reduce its value.

During the appeal, you may need to attend a hearing. In some cases, you may have to appeal twice, as both Pellouchoud and his neighbors had to do. If successful, the appeal could result in a reduced assessment and lower taxes. If you need help, consider hiring a property tax appeals attorney or a real estate attorney to help you navigate the legal system and fight unfair increases.

What to read next

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Leave a Comment

Design by proseoblogger