HomeMy WebLinkAbout20020169.tiff BEFORE THE STATE BOARD OF EQUALIZATION
STATE OF COLORADO
ALL COUNTY ASSESSORS
ORDER OF THE STATE BOARD OF EQUALIZATIC [EOARDpNG 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:
(D17srwt�r e ZJ
i_ ///-S 2002-0169
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 arld 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 value possessory
interests for property tax years 2001, 2002, and forward. Further, that 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 J Oay of December,
2001, 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
Lyle C. Kyle, Chairman
State Board_Orders 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, this2 51-day of December, 2001,
addresses as follows:
Weld County Assessor
1400 N 17th Avenue
Greeley CO 80632
VWeld County Commissioners
915 10th Street
Greeley CO 80632
Weld County Attorney
PO Box 1948
Greeley CO 80632
19`h District Attorney
P O Box 1167
Greeley CO 80632
Maurice Knaizer
Deputy Attorney General
1525 Sherman Street, 7th Floor
Denver, CO 80203
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