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Home My WebLink About20020271.tiff BEFORE THE STATE BOARD OF EQUALIZATION STATE OF COLORADO r: 22 ALL COUNTY ASSESSORS REVISED ORDER OF THE STATE BOARD OF EQUALIZN RE6Al2DING THE VALUATION OF POSSESSORY INTERESTS AFTER REVIEW OF BOARD OF COUNTY COMMISSIONERS v. VAIL ASSOCIATES, INC., 19 P.3d 1263 (Cob. 2001) DOCKET NO. 265 On November 21, 2001, the State Board of Equalization (state board) convened in the Legislative Services Building, 200 E. 14m Avenue, Hearing Room A, Denver, Colorado, to discuss the valuation of possessory interests by all counties. The following members of the state board were present: Lyle C. Kyle, Chairman; Heather Witwer, Vice-Chairman; Senator Terry Phillips, Designee of Senate President Stan Matsunaka; and JoAnn Groff, Appointee of Governor Bill Owens. Representative Joe Stengel, Designee of House Speaker Doug Dean, was absent from the hearing, and did not participate in the vote. The members set forth above by unanimous vote made the within findings and order. In Board of County Commissioners, County of Eagle, v. Vail Associates, Inc., 19 P.3d 1263 (Cob. 2001), the Colorado Supreme Court held that§39-3-136, C.R.S., created an unconstitutional exemption for possessory interests in tax- exempt land. The Court remanded the case to the state board, the county boards "of assessment," and the county assessors for further proceedings consistent with the Court's decision. In addition to the issue of all counties valuing possessory interests, the state board discussed whether counties that did not tax possessory interests must value possessory interests in tax-exempt real property commencing with the tax year 2001 or commencing with the tax year 1996. For the reasons set forth in this order, the state board concludes that such counties must value possessory interests commencing with tax year 2001. Generally, judicial decisions are retrospective. Martin Marietta Corp. v. Lorenz, 823 P.2d 100, 112 (Cob. 1992). However, the question of retrospective or prospective application of a judicial decision ultimately is dependent upon applicable decisions or statutes. The courts will defer to clear legislative intent regarding the retrospective application of court decisions. Kuhn v. State Department of Revenue, 817 P.2d 101, 110 (Cob. 1991). The General Assembly has addressed the scope of authority of government officials to assess and collect property taxes that were not placed on the assessment rolls. Section 39-5-127, C.R.S. (2001) provides: :.lonse//7/ e//dam 2002-0271 Whenever the state board of equalization makes any change in the abstract of assessment of any county or orders an increase or decrease in the valuation of any class or subclass of property located therein, the assessor shall make the necessary changes in the abstract of assessment of the next succeeding taxable year required to carry out such order; . . . Section 39-10-101(2), C.R.S. (2001) states: (2)(a)(I) If,after the tax list and warrant has been received by the treasurer,the treasurer discovers that any taxable property then located in the treasurer's county has been omitted from the tax list and warrant for the current year or for any prior year and has not been valued for assessment, the treasurer shall forthwith list and value such property for assessment in the same manner as the assessor might have done and shall enter such valuation for assessment on the tax list and warrant and extend the levy. . (II) Notwithstanding subparagraph (I)of this paragraph (a)or section 39-5-125,the treasurer shall not treat any possessory interest in exempt property, as described in section 39-3-136 (1) (a),as taxable property omitted from the tax list and warrant for any year if the exclusion of the possessory interest from the assessment roll was based upon any provision of law created or repealed by Senate Bill 96-218, as enacted by the second regular session of the sixtieth general assembly, to clarify that possessory interests in exempt properties are subject to property taxation only if specific statutory provisions have been enacted directing the taxation of such possessory interests. (Italics added.) The General Assembly did not intend to permit the collection of taxes on possessory interests for the time that the prohibition on such collection was in effect if the courts overturned the prohibition. Treasurers may not collect taxes on possessory interests in tax-exempt property "for any year" in which taxes were not collected as a result of SB 96-218. Similarly, the assessor must include possessory interests in the Abstract of Assessment of"the next succeeding year." IT IS HEREBY ORDERED THAT all county assessors except those who were parties to Board of County Commissioners, Eagle County, v. Vail Associates, Inc., 19 P.3d 1263 (Cob. 2001), value possessory interests for property tax years 2001, 2002, and forward. Further, that those county assessors and county treasurers shall not value possessory interests or collect property taxes for years prior to 2001. Lyle C. Kyle, Chairman, made a motion that the state board recommend to the Legislative Council, which will be preparing the R.F.P. for the next reappraisal in 2003, that consideration be given to include in the R.F.P. an audit of possessory interests in each county to verify that county assessors are valuing such interests. JoAnn Groff seconded the motion, and all members present voted unanimously to make the recommendation to Legislative Council. So ordered by the State Board of Equalization this S-ft-m day of January, 2002 by unanimous vote of all four members present, nunc pro tunc, November 21, 2001, as to all county assessors valuing possessory interests for 2001, 2002, and forward. For the State Board of Equalization f. j Lyle C. Kyle, Chairman State Board_Orders Revised 265 CERTIFICATE OF SERVICE This is to certify that I have duly served the within order of the State Board of Equalization upon all parties by depositing copies of same in the United States mail, postage prepaid, at Denver, Colorado, this day of January, 2002, addresses as follows: Weld County Assessor 1400 N 17th Avenue zGreeley CO 80632 Weld County Commissioners 915 10th Street Greeley CO 80632 Weld County Attorney P O Box 758 Greeley CO 80632-0758 19th District Attorney P O Box 1167 Greeley CO 80632 Maurice Knaizer Deputy Attorney General 1525 Sherman Street, 7th Floor Denver, CO 80203 Hello