Date: 12/20/2010
Final
Assessed Value Forecast
COMMITTEE ON LEGISLATIVE COUNCIL
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10:39 AM -- Assessed Value Forecast
Jason Schrock, Legislative Council Staff, also presented the assessed value forecast. He noted that this forecast assists in determining the funding for the school finance act. He noted that the forecast includes property values in all 178 school districts, including commercial, residential, vacant, and industrial property. He explained the process for collecting this information, which included talking to assessors throughout the state. He explained that last year's assessed value forecast was off by one-tenth of a percent. He referred the committee to page 57 of the forecast for information on assessed values. He highlighted the fact that there is a lag in the changes in the economy and changes in property values, and in turn, property taxes, and noted that this lag effect is occurring now. He noted that 2011 is an assessment year for real property, which is assessed every two years. The effect of this is that the lowered property values are projected statewide. He referred the members to page 68 to Figure 22 and discussed the trends that the map shows, particularly in mountain communities that have been hurt by lack of real estate demand and financing in that area. He noted that fall of values in the Western part of the state, which, in contrast to the Front Range decline, is not as severe. He stated that the areas that are seeing increases in property values are on account of the growth of oil and gas industry. He predicted that the 2012-13 forecast will reflect flat property values. In conclusion, he discussed the residential tax rate and noted that it is set by the state constitution as required by the Gallagher amendment.