Odd-Year Property Assessments Present Opportunity for Owners

At a Glance

• In Missouri, Colorado and Montana, the last reassessment occurred in 2023. Since then, commercial real estate fundamentals have shifted or continued on downward trends. 2025 has seen rising uncertainty and volatility in many real estate markets.
• If your property has experienced declining occupancy, reduced income, or other economic impacts since 2023, gather documentation now. Although properties are supposed to be assessed relative to the market, property-specific challenges may speak to broader shifts in the market or competitive forces impacting the specific property.
• Owners of properties in biennial assessment jurisdictions should take advantage of their limited opportunities to challenge excessive assessments. The 2025 appeal cycle presents a time-sensitive opportunity to reduce the property tax liability on properties in Missouri, Colorado and Montana. With assessments locked in for two years, the financial implications of inaction can be significant.

In times of rapid economic swings and market instability, two years can feel like much longer. But for owners and managers of properties in certain states, the opportunity to challenge property tax assessments only arises once every two years. For commercial and industrial taxpayers with assets in Missouri, Colorado or Montana, 2025 marks a pivotal opportunity to challenge property tax assessments. These three states follow a biennial reassessment schedule, meaning that new assessed property values — and the opportunity to appeal those values — only arise in odd-numbered years. With the next reassessment not occurring until 2027, the 2025 appeal cycle represents an immediate and important opportunity to review and challenge overassessments.

Why 2025 Matters

In each of these states, the last reassessment occurred in 2023. Since then, commercial real estate fundamentals have shifted or continued on downward trends. The year 2025 has seen rising uncertainty and volatility in many real estate markets. Rising interest rates, tighter lending environments, softening demand in certain sectors, hybrid work patterns, governmental action and broader macroeconomic headwinds have impacted commercial real estate values across the country, especially in the office, retail and certain industrial segments.

In other words, the market assumptions that informed 2023 assessed values may no longer reflect current market conditions. Tax assessors, however, rely on backwards-looking data; 2025 assessed values, therefore, may not reflect the market realities impacting commercial real estate. And because these states lock in assessed values for two years, any overvaluation in 2025 will result in inflated tax burdens through 2027. A successful appeal, on the other hand, will help ensure that taxes over the next two years are neither excessive nor inequitable.

State-by-State Appeal Deadlines

Every state has its own statutory deadlines and procedures for filing appeals, and taxpayers must be aware of short appeal windows. Here’s what taxpayers need to know:

Colorado Appeals

Notices of Value are typically mailed in early May, and appeals must be submitted to the county assessor by June 9, 2025, although certain jurisdictions may have other deadlines disclosed on the Notice of Value. Informal discussions with the assessor’s office before filing an appeal are not required, but may be helpful in certain cases. Early data suggests that commercial, industrial and multifamily properties generally saw increases between 5% and 20% in the Denver metro region, varying by county and property class.

Missouri Appeals

The deadline to appeal to the local Board of Equalization is typically the second Monday in July (July 14, 2025). However, many counties require an informal review before a formal appeal can be filed, and those deadlines may fall in June.

Montana Appeals

Property owners must submit a Request for Informal Review (Form AB-26) with the Montana Department of Revenue or the local tax appeal board within 30 days of receiving their assessment notices, which are generally mailed in early June. This means most appeals will be due by early July 2025, but deadlines should be tracked more closely because of their rolling nature.

What Owners, Property Managers and Taxpayers Should Do Now

Review Assessment Notices Carefully

Watch for notices of value and review them promptly. When notices arrive, compare the new 2025 assessed value in the context of current market conditions. Pay close attention to any discrepancies in property classification, condition or valuation methodology.

Document Market Changes and Property-Specific Factors

If your property has experienced declining occupancy, reduced income, or other economic impacts since 2023, gather documentation now. Although properties are supposed to be assessed relative to the market, property-specific challenges may speak to broader shifts in the market or competitive forces impacting the specific property.

Consider How Competitive Properties Are Assessed

All properties are supposed to be assessed uniformly and equitably, but assessors work with imperfect data, and sometimes aberrations occur in assessments. Moreover, income-producing properties that compete for a limited pool of tenants must consider how their tax bills impact the comparative cost of occupancy in that building. Evidence of how similar properties are assessed may be helpful in demonstrating the correctness of your property’s assessment.

Engage Early With Experienced Counsel

Given the tight deadlines and procedural requirements, early action is critical. Timely consultation with attorneys who have specific experience with property tax appeals, as well as other valuation professionals, can provide a realistic picture of whether an appeal is warranted. Even if taking an appeal into formal litigation does not make sense, engaging informally with an assessor can still provide benefits at an early stage.

Final Thoughts

Property taxes are often the largest single expense of property ownership aside from debt service. While owners of properties in annual reassessment states get the chance to right-size their assessments every year, owners of properties in biennial assessment jurisdictions should take advantage of their limited opportunities to challenge excessive assessments. The 2025 appeal cycle presents a time-sensitive opportunity to reduce the property tax liability on properties in Missouri, Colorado and Montana. With assessments locked in for two years, the financial implications of inaction can be significant. Property owners and other taxpayers are strongly encouraged to scrutinize their assessment notices and consult with experienced counsel if assessments are excessive or inequitable.