Taxes in Colorado (Denver, Aurora, Longmont: sales, real estate, assessor)

[coloradosteener]

We are a family relocating from England to Colorado and just need some guidance as to the tax structure.

We know there is a federal income tax and a state income tax payable; hence filing annual tax returns. We also know there is a sales tax at POS.

What do Colorado annual real estate taxes include, i.e., real estate value, county, police, fire, trash pick up?

Are there any other annual taxes to be paid and, if so, on what?

[newhandle]

This is how it seems to work. I hope someone can correct me if I am wrong.

State Sales Tax: 2.9% (food and prescription drugs exempt); many cities and counties have their own rates which are added to the state rate. Denver's is about 7.72. Some are higher, some lower.
Gas Tax: 22 cents/gallon which is built into the price
DieselTax: 20.5 cents/gallon which is built into the price
Cigarette Tax: 84 cents/pack of 20

All taxpayers: 4.63% of Federal taxable income
OPT Tax Denver and Aurora have a OPT tax which is a few dollars a month for those who work there whether they are residents or not. It acts the same as a small income tax and is taken out of the paycheck. .
Personal Exemptions/Credits: Federal amounts are automatically adopted.
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: for those 55-64 the first $20,000 is not taxed. Over 64 it is $24,000
Property Taxes Are Confusing
The county assessor determines the value of property using a market, cost or income approach. The last I know of property taxes on real estate are assessed at 7.96% of the property's actual value. The school taxes, etc are built into the property tax bill. For some locations, garbage pick up is included, for others it is not.

If you need to contact anyone at the State Dept of Revenue good luck. It is understaffed and underfunded. To speak with someone it is easiest to call the Governor's office and have them contact the Dept. of Revenue and then the Dept. of Revenue will call you.

[WhereTheSidewalkEnds]

Originally Posted by coloradosteener

We are a family relocating from England to Colorado and just need some guidance as to the tax structure.

We know there is a federal income tax and a state income tax payable; hence filing annual tax returns. We also know there is a sales tax at POS.

What do Colorado annual real estate taxes include, i.e., real estate value, county, police, fire, trash pick up?

Are there any other annual taxes to be paid and, if so, on what?

I've never heard of trash pick up as part of property taxes, but I suppose anything is possible. Here in Longmont we pay our trash pickup with our electric bill.

There are yearly registration fees for vehicles. Part of the fee is based on the value of the vehicle.

[coloradosteener]

jkcoop, our property taxes here in England where i live, trash pick up is included in re taxes.

[coloradosteener]

newhandle.

What taxes are taken from salary? Federal, CO state and SSA?

[WhereTheSidewalkEnds]

Federal, State and FICA - which is social security and medicare.

[Mike from back east]

Property taxes vary by location, but I use a general rule of thumb of 0.666% of market value, thus a house with market value of $600k would have a property tax of @$4k/year. That's a rule of thumb only, for estimating purposes. In some high property tax states like NY, NJ, FL, TX and others, the property tax on a $600k home would be $8k to $12k.

If retired and over age 55, COLO exempts the first $20k of each retirees COLO taxable income. Thusly, 4.63% of $20k = $926 benefit per retiree per year.

[gmm_24]

Your property taxes go to the county for schools, police and etc. Water, trash, sewer and etc are all paid separately by you. Property taxes are included in your monthly mortgage payment. If you have purchased your house outright you pay bi-annually.

Annually you also pay for your car tags, there are taxes included and it can be costly depending on the make, model and year of your car. Small old car you can pay $50 a year, but a new car you can pay $500-700 a year, it does go down as the value of your car does. Emissions are every 2 years for your car. I am exempt for I am not sure how much it costs now.

Each pay check a certain amount comes out to Federal, State and Medicare/SS. Not yearly but a constant deduction.
You file your taxes once a year, if you are lucky you get money back, if you are unlucky you owe the IRS and they are a true pain in the butt to deal with. This year I might even get a refund or break even as long as I do not owe I will be happy.

If you have money saved up the good news is it your pounds are worth more here. I know last year the rate was .60. So your money will almost double. I am not sure what taxes might be associated with that. Banks charge a fee to exchange it so shop around and find the best rate for that.

There is a one time tax fee, the Chocolate Entry Tax, it is one small carryon full of English chocolate. I am the one who collects it so let me know when you arrive as I will not let you out of customs till it is paid in full No Peguins tho, I did not like them very much, lol.

[coloradosteener]

gmm_24

Thanks for the info and the chuckle. Cadbury?

[redwhiteblue]

The Tax Foundation - Educating Taxpayers Since 1937

This is great website I have been using to look up the different states I am interested in. They also keep the site very up to date.