Property Tax 101

Where Your Money Goes

Property tax is the City and County of Broomfield’s (CCOB) second-largest revenue source. It plays a critical role in funding core services such as police, courts, public works, human services, parks and general government operations. Yet the current property tax environment is producing an often confusing set of outcomes for both residents and policymakers.

The "Double Reality" of Property Taxes

CCOB is currently navigating what most might describe as a counterintuitive situation:

  • For Residents: Many residential property owners are seeing their tax bills increase by 5% to 12%.
  • For the City and County of Broomfield: property tax revenue declined by approximately $6.5 million in 2026. This reduction is not being treated as a one-time fluctuation, but rather as a structural reset to the new base moving forward. The decrease is primarily driven by declining commercial property valuations, compounded by state-driven reductions in the commercial assessment rate, which is scheduled to decrease from 29% to 25% in 2027. Together, these factors create ongoing downward pressure on retained property tax revenue and must be incorporated into both current budget planning and the Long-Range Financial Plan assumptions.

Why CCOB’s Revenue Dropping if My Bill is Rising?

The major impact is driven by two main factors beyond CCOB’s control:

  • State Control: Assessment rates are established by the State of Colorado - not CCOB.
  • Commercial Decline: Recent state policy changes have reduced commercial assessment rates, compounding the valuation decline and creating what can be described as a “double whammy” for commercial tax revenue. Historically, commercial taxes have supported a large share of city services; as they are reduced, the approach to accommodate current service levels will need to be consistently reviewed. 

The Distribution: You Write Your Check to CCOB, But Who Does it Go To?

CCOB retains only 24% of the property taxes collected. For every dollar you pay:

  • 52% goes to school districts.
  • 24% stays with CCOB to fund police, roads, parks and other CCOB services.
  • 24% goes to special districts, such as fire, urban drainage, RTD and bond or abatement funds.

The Real-World Impact

The real impact to each resident will depend on where you live - what school district you’re in, what the metro districts are in your area and what their corresponding mill levies are. As an example, a Broomfield home valued at $600,000 has a total tax bill increase of $470.

  • The school district portion increased approximately $550.
  • The CCOB portion decreased approximately $50.
  • The special district portion decreased by approximately $30.

The Bottom Line

Higher residential tax bills do not automatically mean more money for the City and County of Broomfield.

Because of declining commercial valuations and assessment rates, CCOB has increasing pressure on its property tax base. As the portion of property tax that CCOB retains decreases, sales tax and other revenue streams must be more heavily relied on to maintain service levels. This introduces more volatility to the equation, as sales tax is more sensitive to economic cycles.

This is a period in which residential tax bills may rise while CCOB revenue declines. School districts receive the majority share of property tax dollars. Assessment rates and valuation methodologies are determined at the state level. Commercial property pressures are reducing retained revenue. And as a result, CCOB’s disciplined, data-driven long-range financial planning is essential to sustaining service levels in the years ahead.

Watch the Feb. 17 Broomfield City Council Study Session to see the full presentation and understand the core public-sector components and the structural realities driving CCOB’s long-range financial planning.

Property Tax and Valuation - Myths versus Facts

Myth: The City and County of Broomfield uses all the tax money for their own services

Fact: Even though you write your property tax check to the City and County of Broomfield only 24% of that is used for city and county services such as police, roads and parks. The rest of your property taxes are used to pay for other services: 52% goes to school districts and 24% goes to special districts, such as fire, urban drainage, RTD and bond funds.

Myth: The City and County of Broomfield keeps raising my property taxes with these valuations.

Fact: It is important to note, the increases residents are seeing in their property valuations are not due to changes in the City and County of Broomfield’s property tax mill levy. The City and County of Broomfield’s property tax mill levy remains at 28.969 and has not been raised since 2001.

Myth: If my property tax bill went up, it means the City and County of Broomfield is collecting more money and has a budget surplus

Fact: Many residents are seeing tax increases of 5% to 12%, yet the City and County of Broomfield is actually facing a $6.5 million revenue property tax decrease for 2026. Your total bill is a combination of several taxing authorities, including schools and fire districts. While your overall bill may have increased due to rising residential property values and school district needs, the City and County of Broomfield portion of that bill actually decreased by roughly $50 for an average property owner.

Myth: My Value property valuation went down in 2025, but my taxes increased.

Fact: For tax year 2024, the State of Colorado Legislature passed SB24-233 which exempted $55,000 from residential property values and set the assessment rate at 6.7%. That exemption expired and is not applicable to tax year 2025, for which you received your tax bill in February 2026. 

Furthermore, for tax year 2025 the State Legislature adjusted the Colorado residential assessment rate to 7.05% for school mill levies and 6.25% for non-school mill levies. Voters residing in the Adams 12 School District boundary passed Ballot Issue 5B, increasing the mill levy. Changes made by State Legislators to the assessment rates and increases in school mill levies may have increased your tax bill, even though your property value may have decreased in 2025.

Myth: My valuation has gone up tremendously in only one year!

Fact: Property valuations are not done every year; they are done every odd year. This notice alerts property owners of any changes to their property’s valuation as a result of the market or comparable sales data which is collected in arrears, per state statute. That means for the notice of valuation you received in May of 2025, the value of the property is actually being taken from the data collected between July 1, 2022 and June 30, 2024. The last step in that process is the tax bill you received in February 2026.

Myth: Valuations should not increase because home prices are going down

Fact: The Assessor’s Office determines the valuation based on the data collected from July 1, 2022, through June 30, 2024, in order to set values for tax years 2025 and 2026.  The property tax bill you received in February 2026 is what you owe from these assessments.

Myth: The Broomfield Assessor sets the rules and timeline for reappraisal season

Fact: The Broomfield Assessor does not make the rules or set the timelines for the reappraisal process. The State of Colorado makes the laws for how property values are set for all counties and Broomfield is required to follow the laws. All assessors in the state are required to value property based on C.R.S. 39-1-101.

Myth: The Broomfield Assessor's Office determines and calculates my property taxes

Fact: The Assessor’s role is to determine the market value of a property as of a certain date. In Colorado, the property valuation is only one part of a three-part equation to determine property taxes. The other parts are the statewide assessment rate, determined by the state legislature and the local mill levy rate set by the various taxing authorities of school districts, fire districts and other local governments.

Myth: If I can't afford to pay my property taxes with this increased valuation, I'm in trouble

Fact: Residents will not know their property tax amount until the end of the year when both the tax rate and the assessment rate are set. Many property owners can apply for a variety of relief programs including those for seniors, veterans and people with disabilities. Learn more on the Property Tax Exemption and Deferral Programs web page.

Myth: Houses that did not exist on June 30, 2024 (new construction) should not have a valuation

Fact: Part of the state requirements are that assessors must value what is physically present as of January 1 of every year. For the 2025 value, the assessor would have taken the percentage of the improvement or the full value, if the home was completed by January 1, which then becomes your property value as of June 30, 2024.