La Plata County Valuation 2017 THE STUDY PERIOD July 1st 2014 until June 30th 2016 24 months Current process: How properties physically existed on January 1, 2017 Craig N. Larson La Plata County Assessor

2017 Calendar Real property data collection period July 1st 2014 to June 30th 2016. All sales time trended to June 30th 2014. Real prop. protest period-May 1st- June 1st Notice of Determination- June 28th Personal property protest period June 15th. Taxes due January 1, 2018

Objectives Appraisal: How Values are determined. 2. Property type comparisons by location. 3. Full field and office sales analysis. 4. Agricultural valuation process. 5. What makes up a taxing district. 6. State laws.

Real Estate Valuation Actual as of June 30th in even number years. Based on sales values in the previous 18 to 24 months, trended to 6/30. Developed from 12 economically based areas and 150 neighborhoods based on. 1. Location 2. Physical attributes 3. Economic conditions 4. Governmental controls 5. Social characteristics

Residential Neighborhoods Location oriented around access to schools, shopping and buyer types.

Appraisal Based on location and similarity to properties that sold in your neighborhood within a specific time period. Size, quality, condition etc. are all factors that we measure based on our extensive inventory of all properties. We immediately visit all properties that have sold to verify the inventory and establish bench marks for comparable valuation. We strive to model market behavior.

A Look at Residential Assessment ratio 7.96% and 6.56% DURANGO (1111) $300,000 Home@ 7.96% 23880 Assessed .032594 Mill Levy $776 Taxes @ 6.56 $641 BAYFIELD (2201) $300,000 Home@ 7.96% 23880 Assessed .0620550 1482 Taxes@ 6.56 1221 Ignacio (3308) $300,000 Home@ 7.96% 23880 Assessed .033482 $800 Taxes @ 6.56 $659

Vacant Land Assessment ratio 29% DURANGO $100,000 Value @ 29% 29,000 Assessed .032594 Mill levy $945 Taxes BAYFIELD $100,000 Value @ 29% 29,000 Assessed .062055 Mill Levy $1800 Taxes IGNACIO $100,000 Value @ 29 29,000 Assessed .033482 Mill levy $971 Taxes

A Look at Commercial/Industrial Assessment ratio 29% Durango (1111) $500,000 Prop. @ 29% 145,000 Assessed .032594 Mill Levy $4730 Taxes Bayfield (2201) $500,000 Prop. @ 29% 145,000 Assessed .062055 Mill Levy $9000 Taxes Ignacio (3308) $300,000 Prop. @.29% 145,000 Assessed .033482 Mill Levy $4860 Taxes

Oil and Gas Assessment ratio 87.5% Annual Production X price= value $500,000 Value @ X .875 437,500 Assessed .028769 Mill Levy $12,590 Taxes

Agricultural Land Based on type, Irrigated, Dry farm or Dry Grazing 10 Year commodity production average from Colorado Agricultural Service Statistics. 10 Yr. average of commodity prices; drop 2004 & 2005, add 2014 & 2015 average market price. 10 Yr. average of allowable expenses from State, some determined locally.

10 year Averages Hay

10 Year Averages Wheat

How a Tax Dollar is Spent One Dollar County Fire Mosquito Dist. Schools City $391,000 (Budget needed) = Mill Levy ( $.70 per 1000 assessed) 558,718,890 (Assessed value) in service area

STATE LAW LIMITATIONS Gallagher Amendment to the Constitution Chief points; Residential Properties will pay no larger share of taxes, state wide, than in previous years (Gallagher) This means in proportion to other classes of property, Residential will always pay ~45% of the taxes and all other types will pay ~55% This has caused the Residential rate to “ratchet” down from 21% in 1986 to 7.96% today, all other properties will have an assessment rate of 29%, except Oil & Gas production at 87.5%. The 7.96% for 2017 may be 6.56% because of Gallagher