Castle Rock Has Changed. Its Property Tax Rate Has Too.
Since Colorado voters adopted TABOR in 1992, Castle Rock has grown from fewer than 10,000 residents to approximately 88,000.
During that same period, the Town of Castle Rock's municipal property-tax mill levy declined from 19.893 mills to 0.920 mills.
A mill levy is the tax rate applied to a property's assessed value. A 95% reduction in the mill levy does not mean individual property-tax bills declined by 95%, because property values and assessment rates have also changed.
The Town's Mill Levy, Year by Year
What does "0.920 mills" actually mean?
What does "0.920 mills" actually mean?
A mill levy is the tax rate applied to a property's assessed value.
This number should not be confused with the market value of a home.
Important context: The Town of Castle Rock receives only a small portion of the property taxes paid by Castle Rock homeowners.
The remainder of a homeowner's property-tax bill goes to other taxing authorities such as:
- Douglas County School District
- Douglas County
- Metropolitan districts
- Special districts
- Other taxing entities
What is TABOR?
TABOR in Plain English
TABOR stands for the Taxpayer's Bill of Rights.
Colorado voters added TABOR to the State Constitution in 1992.
TABOR affects state and local governments in several ways, including requiring voter approval for tax increases and limiting how much certain government revenue can be retained and spent.
TABOR generally requires voter approval before a state or local government can impose a new tax or increase a tax rate.
TABOR places limits on how much revenue government may retain and spend unless voters authorize otherwise.
Generally, government has two options:
1. Refund the excess revenue.
or
2. Ask voters for permission to retain and spend it.
A TABOR surplus means revenue subject to TABOR exceeded the constitutional revenue limit.
It does not mean the Town increased property taxes too much.
Castle Rock's municipal property-tax mill levy has actually declined dramatically since TABOR was adopted.
Why does Castle Rock rely on sales tax?
Castle Rock Relies Heavily on Sales Tax
Castle Rock's funding model is heavily dependent on sales tax.
- Fire and Rescue
- Police
- Roads
- Parks
- General Town operations
- Shop in Castle Rock
- Eat at local restaurants
- Stay, visit, or attend events
- Purchase taxable goods and services
This means outside spending helps support services used by Castle Rock residents.
Is a TABOR refund a property-tax refund?
A TABOR Refund Is Not Necessarily a Property-Tax Refund
When Castle Rock exceeds its TABOR revenue limit, the excess does not exist simply because residents paid too much in Town property taxes.
Castle Rock receives significant revenue through sales tax, including purchases made by people who do not live in Town.
Those revenues contribute to the Town's financial picture and, when subject to TABOR, can contribute to an excess above the TABOR limit.
If voters do not authorize the Town to retain excess TABOR revenue, that money generally must be refunded rather than invested in Town services.
What Can Those Dollars Do in Castle Rock?
Why Does Local 4116 Talk About Town Finance?
More residents, businesses, roads, homes, and visitors create greater demand for:
Local 4116 believes residents should understand how these services are funded and how decisions involving TABOR can affect the resources available to serve Castle Rock.
Our position is not that residents should automatically support every tax or every request to retain revenue.
Our position is that those decisions should be made with accurate information.
Understanding where Castle Rock receives its revenue, how little of a homeowner's property tax goes directly to the Town, and what TABOR does with revenue above its limit helps residents make informed decisions about the future of their community.
Growth Requires Choices
Castle Rock has changed dramatically since TABOR was adopted in 1992.
Our community is larger. Emergency demand is greater. Infrastructure has expanded. Yet the Town's municipal property-tax mill levy has fallen from 19.893 mills to 0.920 mills.
As Castle Rock continues to grow, decisions about Town revenue will continue to directly affect roads, police, Fire and Rescue, and other services residents depend on every day.
Local 4116 will continue providing residents with factual information and the perspective of the firefighters serving this community.
Your safety is our purpose.
Sources & Methodology
- Douglas County Assessor — historic mill levy records
- Town of Castle Rock — adopted budgets and financial reports
- Town of Castle Rock — TABOR information
- Town of Castle Rock — property-tax information
- Colorado Legislative Council — TABOR explanations
- U.S. Census / Town of Castle Rock population estimates
The mill levy represents the Town of Castle Rock municipal levy only. It does not represent the combined levy of all taxing authorities appearing on a Castle Rock property-tax bill. Property-tax bills are also affected by assessed property values, assessment rates, and levies imposed by other taxing entities.