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Assessor warns San Juan County may need to lower mill levy under new state property‑tax cap
Summary
County assessor presented preliminary reappraisal figures and warned that a new state cap on property‑tax revenue (using 2023 as a base year and a 5.25% annual cap) could force a mill‑levy reduction unless the board pursues exemptions or voter approval.
Ken, the county assessor, presented the county’s preliminary abstract of assessment and explained the implications of recent state changes limiting property‑tax revenue growth. Using a working spreadsheet and public data, Ken reported that assessed values rose substantially after the most recent reappraisal and that the state’s new statutory cap on property‑tax revenue could require the county to reduce its mill levy.
Ken said the new rule uses 2023 as a base and applies a 5.25% annual cap on qualifying property‑tax revenue. He reported a preliminary calculation indicating the county’s current mill levy could need to drop from 19.641 mills to about 17.91 mills to remain within the cap, but he emphasized that the number is provisional and depends on final assessment rates, DOLA worksheets and legal interpretation.
Commissioners and Ken discussed options, including revisiting prior ‘‘debrucing’’ actions and whether the county could rely on previous debrucing language to avoid a second debrucing. Ken said the state guidance is ambiguous and that other counties are assessing whether prior debrucing covers the current statutory language. He recommended consulting the county attorney for a legal interpretation and possibly getting a second expert review of the spreadsheet calculations.
Board members noted the practical budget impact: if the county must lower the mill levy, it would reduce property‑tax revenue despite rising assessed values, which could constrain county operations unless the board seeks voter approval to retain revenue. The assessor agreed to share the worksheets and the calculations so the commissioners and the county attorney can review options and consider whether to present a measure to voters.
No formal action was taken at the meeting; the board asked staff to provide the assessor’s worksheets and to consult with legal counsel about whether prior debrucing exempts San Juan County from the new cap or whether a voter measure will be necessary.
