Why are Colorado Property Taxes So Low?

One of the lowest property tax rates in the country is reputed to be in Colorado. Over the years, the state has continuously been rated among the ones with the lowest property tax rates. As of 2021, Colorado’s average effective property tax rate was 0.55%, significantly lower than the US average of 1.07%. What accounts for Colorado’s low property taxes? This is influenced by a few different things.

The Taxpayer’s Bill of Rights (TABOR) is one of the primary causes of Colorado’s low property tax rates. This 1992 statute places a cap on the amount of tax money that the state can recoup from citizens. Any tax increase must need voter approval under TABOR. As a result, Colorado residents must provide their consent before the state can raise property tax rates. As a result, Colorado has continued to enjoy cheap property taxes when compared to other states.

Colorado’s strong economy is another factor in the state’s low property taxes. Property values have increased as a result of the state’s consistent economic growth over the years. Even with a low tax rate, the state government can raise more money from property taxes when property values are higher.

Let’s move on to the questions that are relevant now: How do you calculate sales tax?

You must be aware of the local sales tax rate in order to calculate the Colorado sales tax. On the website of the Colorado Department of Revenue, you can find this. Once you are aware of the sales tax rate, calculating the amount of sales tax due is as simple as multiplying the item’s price by the tax rate.

Is there an internet sales tax in Colorado?

Colorado does indeed impose a sales tax online. In reality, the state was among the pioneers in 2010 to introduce an internet sales tax. Colorado’s current online sales tax rate is 2.9%.

What is Colorado’s retail tax rate?

Colorado has different rates of retail sales tax depending on where you are. Local governments may tack on their own sales tax rates in addition to the 2.9% state sales tax. In Colorado, the average total sales tax rate is 7.72%.

What is the 80121 sales tax rate?

Colorado’s 80121 is a zip code, and its sales tax rate is 8.31%. This includes both the 2.9% state sales tax and the 5.41% municipal sales tax. The special district tax makes up the remaining 0.5%.