To: New York Times Reporter Mr. David Chen

From: evergreensafetywatch

Subject: Excessive property assessments and taxes in Colorado

Date: 5/6/24

Hello Mister Chen,

A recent short report in the Sunday Times, informed me that you were investigating the recent excessive increases in residential real property valuations and property taxes occurring in Colorado. Once a 17 year property owner in Maplewood New Jersey, I am a transplant and have been a residential property owner in Evergreen and Jefferson County Colorado for more than 35 years.

I can confirm your finding of excessive assessments and property tax increases in Jefferson county Colorado for the past six years, and I know why this has occurred.

The reason for the excessive increase tn property taxes in Jefferson and other counties in Colorado can be summed up and explained in three words: “Ideology” and “Assessment Calculation.” Specifically; Political Ideology and Mass Appraisal.

A Domestic Political Experiment

Colorado has been selected, by conservative, free market, conservative republican ideologues, as the site for a compound “domestic political experiment.”

The experiment, was put in place, several years ago, by a legislative majority of conservative republican ideologues. However, it is not a typical clinical trial based experiment to prove an independent hypothesis. Rather, it is a compound experiment to see if a system can be put in place that will prove that :

1. outsourced corporate governance, led by a single CEO or a unified small cabal of single minded board members, is less expensive, more efficient and more free enterprise responsive than the slow to respond, messy, and inefficient democratic municipal government alternative, as defined by title 31. Democratic municipal government is for urban areas and private enterprise special districts are for suburban and rural areas, and also
2. that the alternative outsourced government services can be authorized with a “in plain sight” Title 32 legislation, a caretaker Department of Local Affairs (DOLA) and an assessment system that preemptively replaces the assessment system mandated by CRS 39-1-103 and guarantees annual high tax rate revenues diverted to special districts.

With the:

1. Republican majority passage of Title 32,
2. the creation of the Department of Local Affairs to insure the special treatment and success of special districts, and
3. the step-wise installation of a clandestine and illegal real property statistically based and misapplied mass appraisal assessment methodology,

free market conservatives designed and put in place the current special district governance and gave Colorado a split political personality.

1. A Constitutional democracy for statewide issues and citizens living in title 31 municipalities in urban areas and
2. corporate governance for local issues and citizens living in suburban and rural Title 32 areas.

The struggle between the two personalities is existential and unremitting to determine the eventual winner of the Title 31 – Title 32 war*. The current battle is between the DOLA Mass appraisal and the C.R.S. 39-1-103 comparable sales (see Attachment # 1) assessment methodologies.

The compound experiment also attempts to see if the designed undemocratic Title 32 system can be put in place and operated successfully to “pull the wool over the eyes” of the property owner lab rats without their knowledge of themselves as participants in an experiment.

Key to the success of the compound experiment is the :

1. casting and disguising of special district governance as the better alternative to messy democratic governance and
2. with the promotion of the illusion that special district governance is less expensive than the democratic municipal alternative.

The result of this compound experiment to date is:

1. an excessive number (over 2,000) of uncontrolled, insurance deficient (see Attachment # 2 ), and cost hiding special district enterprises masquerading as political subdivisions of the state of Colorado ( see evergreensafetywatch.com/ Analysis of Title 32).
2. an overburdened state retirement system (PERA) that harbors and provides retirement benefits to “free enterprise” special district employees and
3. an illegal and misapplied assessment methodology provided to and misapplied by county Assessors ( who are elected county officials, do not take a civil service exam, and do not report to the Department of Local Affairs (DOLA) which has no statutory authority to regulate or promote any methodology for the calculation of assessment values, which is regulated by the General Assembly in CRS 39-1-103.Additionally, there is no executive order, by the Governor that has president over existing state law (see Attachment # 3) : “AUTHORITY OF GOVERNOR TO ISSUE EXECUTIVE ORDER HAVING THE FORCE AND EFFECT OF LAW”
4. the miscalculated, excessive, incorrect, and unfair real property taxation by county Treasurers who use illegal mass appraisal values in place of assessment/current/actual values calculated by using a statutory mandated “Market Approach.”

So, the two proximate causes for the excessive residential rear property assessment and tax increases in Jefferson and other counties of Colorado are hiding in plain sight. They are combined in a is a compound “domestic political experiment” to:

1. terminate the expansion of democratic holistic municipal governments with a replacement by outsourced government services delivered by special district corporate structures, and
2. install an assessment methodology that guarantees the maximum level of property taxes that will insure the success of the experiment/strategy.

To prove that the special district approach is less expensive than democratic government a DOLA, reporting directly to the Governor, was created and a clandestine assessment and property tax scam has been put in place to insure the success of special districts at the expense of existing holistic democratic municipal/county governments.

So, with an understanding of the “Ideology” part of the experiment lets examine the assessment calculation part by comparing two methodologies and their social impacts.

HOW THE STATE ASSESSMENT LAW (CRS 39-1-103) WORKS AND

HOW THE RESULTING SOCIAL POLICY IMPACTS PROPERTY OWNERS

How the “Market Approach” appraisal law works :

Here are the controlling elements of the state law CRS 39-1-103 (Attachment #1):

1. the “applicable approach” mandated is the “market approach.”
2. “The Assessor documents elements of the applicable approach” and publishes a calculation specification. An important standard element is “YEAR BUILT.”
3. “Use of the market approach shall require a representative body of sales, including sales by a lender or government, sufficient to set a pattern, and appraisals shall reflect due consideration of the degree of comparability of sales, including the extent of similarities and dissimilarities among properties that are compared for assessment purposes.”

Here are the compliance actions of the “Market Approach”

1. The subject property to be assessed is compared to three or more similar (comparable) properties that have been sold during the appraisal period.
2. The sale price of each comparable is adjusted by adjusting dollar values of attributes of the comparable properties, up or down to make each comparable property similar to the subject property.
3. The dollar value adjustments are added to or subtracted from the sale price of each comparable to derive a total adjusted sale price of the similar (comparable) property.
4. The adjusted sale prices of all the comparable properties are added together and divided by the number of comparable properties to derive an average value.
5. The average value by this “market approach” and by law is the final assessed/current/actual value of the subject property to subsequently used by the Treasurer, to compute the property tax. Burden of the property owner.

How the resulting social policy impacts property owners :

1. Key social policy element is “YEAR BUILT” which provides for a price adjustment for the age of housing and therefore a tax adjustment for property owners who remain in their homes for long periods. Typically compatible prices are adjusted downward thus providing a value and tax break for retirees

 

HOW THE MASS APPRAISAL SCAM WORKS AND

HOW THE RESULTING SOCIAL POLICY IMPACTS PROPERTY OWNERS

How the mass appraisal scam works

The mass appraisal scam has four components:

1. A non-statuary training and methodology implementation assistance component (DOLA)
2. An installation component (county Assessors)
3. an application , execution, and calculation component (county Assessors) and
4. A tax calculation and billing component (County Treasurers)

How the non-statutory mass appraisal assessment methodology works :

1. DOLA creates a Mass appraisal training program for Assessors and subordinates,
2. County Assessors and subordinates receive training from DOLA,
3. County Assessors and subordinates obtain, install and customize the statistical computer application to fit the county characteristics,
4. County Assessors and subordinates identify descriptive attributes of residential properties thatare strong determinants of the selling price of sold properties in predefined market/geographic areas of the county. These multiple attributes are arranged in a multiple regression equation,
5. the multiple regression statistical equation is solved using the attributes of all sold properties and produces a group of multiple regression lines.
6. A least squares methodology is then used to collapse the multiple regression lines down to the sale price line, thereby producing a single sale price value for the group/mass of sold properties,
7. Assessors who are either :

1. ignorant of the fact that the mass appraisal value is only a representative measure of a group of sold properties and cannot be assigned as an actual/current/assessed value to a specific unsold property or
2. seeking to replace the task of calculating thousands of actual/current/assessed values for all unsold real residential properties in a market/geographic area,
3. or seeking to replace a broken comparable sales computer application,intentionally assign the mass appraisal value to all unsold properties. What this means for the authors property is an assigned mass appraisal value of $933,239. Whereas the value calculated according to state law is $810,640. This is an overvaluation by the Assessor of $122,599. Thereby forcing this property owner to pay property taxes on both $810,6400 and $122,599.This overvaluation occurs for all other unsold property owners who have received a value for a group of sold properties as an assessed/current/actual value of their specific property. Hence the dramatic increase in assessments and property taxes. The Domestic Political Experiment is expensive.

 

These facts are true for my property because I have evidence in support of these facts. Douglas and Delta counties have also published documentation supporting mass appraisal application. DOLA can tell you who they have trained and what Counties are using the mass appraisal methodology. I know of no other reasonable explanation for the dramatic increase in assessments and property taxes.

A recent property tax bill shows how these taxes are distributed for an Evergreen property.

Special Districts                                      Other County Government R1 School District $2181.36         County Government General Fund $906.25 Fire & Rescue $586.65                             County Law Enforcement $128.23 Parks & Recreation $295.34                                        Road & Bridge $54.05                                                                                           Library $212.78                                                                   Developmental Disability $47.28                                            Social Services                 $ 55.27 Total                     $3063.35                                                                  $1403.86       $4467.21 All Districts 68.57%                                       Other County Government 31.43% School District 48.83% Other Districts 19.74%

 

 

More than two thirds of property tax dollars are distributed to special districts.

How the mass appraisal scam social policy impacts property owners

The intentional assignment of the mass appraisal value to all unsold properties in a market/geographic area implements a non-statutory social policy that can be stated as:

“In order to maximize property tax revenue, all property owners of unsold properties shall be assessed at a value equal to the mass appraisal/group value calculated for properties sold during the appraisal period and shall pay property taxes calculated by using the mass appraisal value with no adjustment for the age of real property.”

So, grandma and grandpa, who have maintained their unsold property for 35 years, will have a tax burden based on a value that is a function of the elevated sale prices of properties recently sold in a high value real estate market without an adjustment for the lesser value of their aged property. This consequence implements another social policy.

The constantly increasing inflationary tax burden will eventually force grandma and grandpa and other property owners whose incomes do not keep up with real estate inflationary pressures, out of their home. Only upscale income property owners will remain in the county and most residential services will have to be performed by persons living elsewhere.

The Governor and DOLA have no authority, from any source, to promote the use of a real property mass appraisal assessment calculation methodology. Only the General Assembly has such authority and it has done so by passing C.R.S. 39-1-103 which mandates the “Market Approach”Comparable Sales Adjusted Sales Price methodology that every County Assessor must use! Full stop, end of story.

Any use of a mass appraisal methodology, by any Colorado County Assessor, to calculate the assessed/current/actual value of a specific real residential property for property taxation, is illegal.

Conclusions

So, by now you have probably figured out that what has been described is not a “domestic political experiment.” In fact it does not qualify as a clinical trial type of controlled experiment as noted above. Rather it is a “domestic political strategy” to:

1. create a rogue government department (DOLA) reporting only to the Governor

2. outsource government services to private corporations masquerading as public subdivisions (see evergreensafetywatch.com/analysis of Title 32)

3. provide fake executive leadership by part time unqualified non-government pension seekers with little or no government experience, who never passed a civil service exam to prove they are capable of delivering services to the public.

4. Mask the true cost of services by offloading the cost of employee retirement benefits to the state retirement system (PERA)

5. Mask the true cost of services by special districts purchasing insufficient liability insurance that fails to protect taxpayers.

6. Mask the true cost of services by evading federal taxation.

7. Preempt state assessment law by installing a rogue real property assessment methodology that forces all property owners to pay property taxes based on the inflated sale prices of newly sold properties in an inflated real estate market.

8. Install a rouge assessment methodology to maximize property tax revenues. The General Assembly has mandated in CRS 39-1-103, that the average value of adjusted comparable sale prices is the closest approximation to an assessed value for a specific property.

Assessors applying a mass appraisal methodology, at the behest of and in collaboration with DOLA, are engaging in a blatant violation of state law (Attachment #1).

The consequences of this failed strategy go beyond overvalued assessments and excessive taxes in Jefferson County.

The Evergreen area is a census designated place (CDP) with three special districts that gobble up about 69% of the property tax revenue. The CDP sports a population in its densely wooded area with no designated wildfire escape routes, limited designated fire lane protection and a failing indoor recreation and high school swimming pool. With no funds set aside for repair during 50 years of operation.

This amenity, shared by two special districts that compete for the same property tax dollars, is on the verge of failure. Which special district will ask voters to pay for a fix? The “elephant in the room” School District may not own the pool but it owns the property on which the entire recreation center sits.

Special Districts, like any corporation will apply any advantage they have to compete.

This disregard for the public is documented at evergreensafetywatch.com. It comes in pages. The net take away is that special districts don’t work, and County government is either AWOL or a predator intentionally disregarding state assessment law to produce excessive assessed values and taxes.

All based on the ideological assumption that if democracy was replaced and private corporations ran the world everything would be wonderful.

So, I have attempted to correct the assessment problem using the court option provided by the General Assembly. Only to be treated with an Alice in wonderland trial in county district court (2021CV232) with an affirmation by the state Appellate court (23CA153). The Colorado judicial system was made well aware but could not marshal the courage to fix the assessment problem. I have a copy of the ruling

by the Colorado Court of Appeals, which I can provide.

Unimpressed with the Colorado judicial system, I filed a complaint in the 10^th circuit Federal district court (123-cv-02054-SKC-NRN West v. Kersgard), where I now await a ruling on the County’s motion to dismiss. The court records are all public records.

So, Mr. Chen, should you decide to further investigate this matter, you will have a tough row to hoe. I have found the state government culture to be insular and unresponsive to the common citizen (even CDOT’s citizen advocate was speechless and unresponsive when informed about County money laundering (see 21CV232 Court Fie : pg 341) of HUTF tax dollars.

Feel free to contact me if you have questions. I have a wealth of information (all the court records) that I am willing to share. I truly wish you the best of luck with your research and reporting.

Sincerely,

evergreensafetywatch

_____________________________________________________*Democratic municipal Governments are rarely created in modern day Colorado since the passage of Title 32. While more than 2,00 special districts have been created, only Centennial in 2001 and Castle Pies in 2007 and Keystone in 2023 were Title 31 products.

County officials would normally be attentive to the development of CDP economic and residential centers that could be joined together to achieve synergy in the delivery of government services. For example : if studies show it feasible and voters approve, Evergreen Genesee, Kittredge , Indian Hills , and Idledale, all close neighbors, could be formed as a Title 31 municipality named Evergreen Woods.

Attachments

Attachment # 1

C.R.S. 39-1-103

(5) (a) “All real and personal property shall be appraised and the actual value thereof for property tax purposes determined by the assessor of the county wherein such property is located. The actual value of such property,…. shall be that value determined by appropriate consideration of the cost approach, the market approach, and the income approach to appraisal. The assessor shall consider and document all elements of such approaches that are applicable prior to a determination of actual value….

The actual value of residential real property shall be determined solely by consideration of the market approach to appraisal….

(a) (I) Use of the market approach shall require a representative body of sales, including sales by a lender or government, sufficient to set a pattern, and appraisals shall reflect due consideration of the degree of comparability of sales, including the extent of similarities and dissimilarities among properties that are compared for assessment purposes.”

The words “Multiple Regression” and “Mass Appraisal” do not exist in this law.

Attachment # 2

Cherry Creek School District news report

Read the entire news report at evergreensafetywatch.com/Cherry Creek School District news report (including comments about how special districts purchase inadequate coverage low premium cost insurance to falsely project low cost services)

Attachment # 3

AUTHORITY OF GOVERNOR TO ISSUE EXECUTIVE ORDER HAVING THE FORCE AND EFFECT OF LAW      

Office of Legislative Legal Services

Colorado General Assembly

Colorado State Capitol

200 East Colfax Avenue Suite 091

Denver, Colorado 80203-1716

Tel: 303-866-2045 Fax: 303-866-4157

Email: olls.ga@state.co.us

 

MEMORANDUM

TO: Interested Persons

FROM: Office of Legislative Legal Services

DATE: August 3, 2020

SUBJECT: Scope of Governor’s Power to Issue Executive Orders1

 

EXECUTIVE SUMMARY

Determining whether an executive order has been issued within the scope of the

Governor’s authority requires an analysis of the following:

1) The type of executive order involved;

2) A decision whether the order violates the separation of powers doctrine by

interfering with the legislative power vested in the General Assembly;

3) An evaluation to determine whether the order falls within any power expressly

granted to the Governor by the state constitution or by statute; and

4) A determination whether the General Assembly has already legislated in the area which is the subject matter of the executive order.