Property Tax Appeals Result in 12.8% Average Value Reduction
Larimer County property owners who appealed their 2025 tax assessments are seeing an average reduction of 12.8% in their property values, with 311 accounts adjusted out of 2,710 scheduled appeal hearings, according to data presented to county commissioners September 30.
The Board of Equalization hearings, conducted between September 18-23, resulted in adjustments to 311 accounts while 94 appeals were denied. Of the successful appeals, 154 were stipulated changes where the Assessor's office and property owners reached agreement before formal hearings took place.
Deirdre O'Neill from the Clerk and Recorder's Office told commissioners the current reduction rate is higher than historical patterns but noted hearings will continue through October 21, which could alter the final percentages.
Historical Context Shows Variance
The 12.8% reduction rate exceeds adjustments from previous assessment years. In 2019, a comparable year with similar appeal volumes, the total value change was 5.5%. The 2021 assessment cycle saw a 3.5% change, while the anomalous 2023 cycle resulted in a 6.1% change despite handling over 4,400 accounts.
Colorado property tax law requires county revaluations in odd-numbered years using comparable sales data from the preceding 18 months. The significant initial assessment increases in Larimer County triggered the high volume of appeals, with 2,710 accounts scheduled compared to 2,087 in the comparable 2019 cycle.
Property owners receive Notice of Valuation by May 1 and can file appeals by June 1 if they disagree with assessments. Appeals must cite factual grounds such as incorrect property characteristics or inappropriate comparable sales, according to Colorado property tax statutes.
Revenue Impact on Local Services
All property tax revenue remains local and funds schools, fire districts, municipal services, and county operations. When successful appeals reduce assessed values, local governments may face budget shortfalls relative to projections.
"All of the revenue generated by property taxes stays within your county. Property taxes do not fund any state services," according to Larimer County's property tax guidance. Reductions directly affect funds available for local operations and education.
School districts, typically the largest recipients of property tax revenue, may need to consider budget cuts or seek voter-approved mill levy increases when assessment reductions are significant. Fire districts and other special districts face similar pressures to maintain services with reduced revenue.
Statewide Comparison Shows Regional Differences
Professional property tax consultants report statewide success rates of 66-82% for commercial property appeals, with average reductions of 17-32% in high-growth areas like Boulder and Denver counties. Larimer County's 12.8% average reduction is more conservative than Boulder County's 28% average reduction rate.
Neighboring Weld County saw 5-7% commercial assessment increases with lower appeal volumes and reduction rates, making Larimer County an outlier regionally for both initial assessment increases and appeal activity levels.
The assessment appeal process includes multiple levels of review. Property owners unsatisfied with County Board of Equalization decisions can appeal to independent arbitrators, District Court, or the State Board of Assessment Appeals within 30 days.
Commissioner Jodi Shattuck McNally thanked the clerk's office team for their "complex, diligent work" managing the extensive hearing schedule. The commissioners will continue receiving weekly updates on appeal outcomes through the extended October 21 deadline.