Property Subject to State Assessment
Public utility companies, collectively called state assessed companies, are valued for property tax purposes by the Property Tax Administrator. The statutes governing the classification, valuation, and assessment of these companies are found in article 4 of title 39, Colorado Revised Statutes.
Definitions.
(3)(a) “Public utility” means, for property tax years commencing on or after January 1, 1987, every sole proprietorship, firm, limited liability company, partnership, association, company, or corporation, and the trustees or receivers thereof, whether elected or appointed, that does business in this state as a railroad company, airline company, electric company, small or low impact hydroelectric energy facility, geothermal energy facility, biomass energy facility, wind energy facility, solar energy facility, energy storage system, clean energy resource, rural electric company, telephone company, telegraph company, gas company, gas pipeline carrier company, domestic water company selling at retail except nonprofit domestic water companies, pipeline company, coal slurry pipeline, or private car line company.
(b) On and after January 1, 2010, for purposes of this article 4, “public utility” shall not include any affiliate or subsidiary of a sole proprietorship, firm, limited liability company, partnership, association, company, or corporation of any type of company described in subsection (3)(a) of this section, that is not doing business in the state primarily as a railroad company, airline company, electric company, small or low impact hydroelectric energy facility, geothermal energy facility, biomass energy facility, wind energy facility, solar energy facility, energy storage system, clean energy resource, rural electric company, telephone company, telegraph company, gas company, gas pipeline carrier company, domestic water company selling at retail except nonprofit domestic water companies, pipeline company, coal slurry pipeline, or private car line company. Valuation and taxation of any such affiliate or subsidiary of a public utility as defined in subsection (3)(a) of this section, shall be assessed pursuant to article 5 of this title 39.
§ 39-4-101, C.R.S.
Definitions.
(2.3) “Biomass energy facility” means a new facility first placed in production on or after January 1, 2010, that uses real and personal property, including leaseholds and easements, to generate and deliver to the interconnection meter any source of electrical or mechanical energy by combusting only biomass or biosolids derived from the treatment of wastewater and that is not primarily designed to supply electricity for consumption on site.
§ 39-4-101, C.R.S.
Definitions.
(2.4) “Clean energy resource” has the same meaning as set forth in section 40-2-125.5(2)(b).
(2.6) “Energy storage system” means commercially available technology that is capable of retaining electricity, storing the energy for a period of time, and delivering the electricity after storage by chemical, thermal, mechanical, or other means. “Energy storage system” does not include a solar energy facility, as defined in subsection (3.5) of this section, or a wind energy facility, as defined in subsection (4) of this section.
§ 39-4-101, C.R.S.
Definitions.
(2.7) “Geothermal energy facility” means a new facility first placed in production on or after January 1, 2010, that uses real and personal property, including but not limited to leaseholds and easements, to generate and deliver to the interconnection meter any source of electrical or mechanical energy by harnessing the heat energy of groundwater or the ground and that is not primarily designed to supply electricity for consumption on site.
§ 39-4-101, C.R.S.
Definitions.
(3.3)(a) “Small or low impact hydroelectric energy facility” means a new facility first placed in production on or after January 1, 2010, that uses real and personal property, including but not limited to leaseholds and easements, to generate and deliver to the interconnection meter any source of electrical or mechanical energy by harnessing the kinetic energy of water, that is not primarily designed to supply electricity for consumption on site, and that is:
(I) A new facility that is a small facility that has a nameplate rating of ten megawatts or less; or
(II) A new facility that has a nameplate rating of more than ten megawatts and that:
(A) Is an addition to water infrastructure such as a reservoir, a ditch, or a pipeline that existed before January 1, 2010;
(B) Does not result in any change in the quantity or timing of diversions or releases for purposes of peak power generation;
(C) Includes measures to prevent fish mortality in facilities on on-stream reservoirs and natural waterways; and
(D) Does not cause any violation of state water quality standards when operated; or
(III) A new facility that has a nameplate rating of more than ten megawatts and that:
(A) Is placed into production as part of new water infrastructure such as a reservoir, a ditch or a pipeline constructed on or after January 1, 2010, and operated for primary beneficial uses of water other than solely for production of electricity;
(B) Includes measures to prevent fish mortality in facilities on reservoirs and natural waterways; and
(C) Does not cause any violation of state water quality water standards when operated.
(b) For purposes of this subsection (3.3), “new facility” includes a combined facility that is a combination of a facility placed in production before January 1, 2010, that uses real and personal property to generate and deliver to the interconnection meter any source of electric or mechanical energy by harnessing the kinetic energy of water and that is not primarily designed to supply energy for consumption on site and an addition or energy efficiency improvement to the facility first placed in production on or after January 1, 2010, if the addition or efficiency improvement increases the electrical or mechanical energy-producing capacity of the combined facility by at least twenty-five percent over the capacity of the facility placed in production before January 1, 2010, alone.
§ 39-4-101, C.R.S
Definitions.
(4) “Wind energy facility” means a new facility first placed in production on or after January 1, 2006, that uses property, real and personal, including one or more wind turbines, leaseholds, and easements, to generate and deliver to the interconnection meter any source of electrical or mechanical energy in excess of two megawatts by harnessing the kinetic energy of the wind, including any connected device for which the primary purpose is to store energy.
§ 39-4-101, C.R.S.
Definitions.
(3.5)(a) “Solar energy facility” means a new facility first placed in production on or after January 1, 2009, that uses real and personal property, including one or more solar energy devices, as defined in section 38-32.5-100.3(2), leaseholds, and easements, to generate and, except as provided in subsection (3.5)(b) of this section, deliver to the interconnection meter any source of electrical, thermal, or mechanical energy in excess of two megawatts by harnessing the radiant energy of the sun, including any connected device for which the primary purpose is to store energy, and that is not primarily designed to supply electricity for consumption on site.
(b) “Solar energy facility” includes facilities for agrivoltaics, as defined in section 35-1-114 (4)(a), and for floatovoltaics, as defined in section 37-60-115 (12)(c)(III).
§ 39-4-101, C.R.S.
Duties of the Division of Property Taxation
The following are the duties and functions of the Division of Property Taxation that relate directly to state assessed properties. The first three items are covered in greater detail later in this section.
- Value the operating property and plant owned, leased or used by state assessed companies, within and without the state, that is directly connected with the business in which the company is engaged, § 39-4-102, C.R.S.
- Allocate value to the state. When a company operates in more than one state, allocation of value to the state is based on a combination of its tangible and intangible assets or its intangible assets in Colorado, § 39-4-106, C.R.S. Then, the corresponding assessment rate is applied as required by § 39-1-104(1.8)(b), C.R.S.
- Apportion value to the counties. The apportionment of value to the counties is based on the tangible or intangible investment in the county, § 39-4-106, C.R.S.
- Defend the state assessed valuations that are protested by the state assessed companies, by assessors, or by boards of county commissioners, § 39-4-108, C.R.S.
- Conduct capitalization and equalization studies, § 39-4-102, C.R.S.
- Conduct research and develop procedures for improving the valuation and apportionment of state assessed properties.
- Assist counties and taxpayers with inquiries and problems pertaining to such properties.
The Division has a staff that performs the duties listed above. All questions relating to state assessed properties should be directed to the State Assessed Section, at 303-864-7777.
Valuation
The following are definitions used when valuing state assessed properties.
Operating Property
Operating property is defined as all property; real and personal, tangible and intangible, that is used in the operation of the state assessed company, regardless of its contribution to earnings. The definition typically includes leased property.
Non-Operating Property
Property that is not directly connected with the day-to-day operation of the company is considered non-operating property.
State Assessed v. Locally Assessed
The Administrator values only the company’s operating property. However, Federal Communications Commission (FCC) spectrum licenses are excluded as provided by § 39-4-102(1)(b), C.R.S. The assessor values the company’s taxable non-operating property. For purposes of valuing public utilities, the value cannot include any affiliate or subsidiary that is not doing business in the state primarily as a public utility, § 39-4-101(3)(b), C.R.S. The valuation and taxation of any such affiliate is done pursuant to article 5 of title 39, C.R.S.
Statute states that the direct charges for providing internet access services shall not be taxed, § 24-79-102(1.5), C.R.S. Companies that provide only internet access services are locally assessed.
State Assessed Companies – Valuation
A state assessed company is valued as a unit, with consideration given to the three unitary appraisal approaches.
- The cost approach utilizes the historical cost less accumulated depreciation of all property, both tangible and intangible, that comprises the operating property of the company. The depreciation includes all forms of economic obsolescence.
- The income approach - The company’s income is capitalized. It is Division policy to exclude costs associated with issuing stock or debt and to exclude flotation costs. In Colorado Interstate Gas Company v. Property Tax Administrator Mary Huddleston, 28 P.3d 958 (Colo. App. 2000), the court held that the Property Tax Administrator is not required to include costs associated with issuing stock or debt.
- The market approach - Due to a lack of sales, a variation on the market approach is used. The variation is called the stock and debt approach. The approach uses the average market value of the company’s outstanding securities during the preceding calendar year, if the market value of the securities is determinable.
The Administrator may assign any weight to these valuation factors that will, in the Administrator’s judgment, determine a fair and equitable valuation. The Administrator also has the option of valuing a company on the basis of its Colorado property and earnings if, in the Administrator’s judgment, the books and records accurately reflect the actual value of the property and plant in Colorado, § 39-4-102, C.R.S.
When determining the actual value of a renewable energy facility that primarily generates electricity, except for small or low impact hydroelectric energy, biomass energy, wind energy or solar energy facilities, the Administrator determines the additional incremental cost of construction of the facility that is higher than the cost of a comparable nonrenewable energy facility. The incremental cost difference cannot be included in the valuation of the renewable energy facility, § 39-4-102(1)(e), C.R.S.
The valuation of a small or low impact hydroelectric energy facility, biomass energy facility, wind energy facility or a solar energy facility shall be based solely upon the income approach. The actual value of a small or low impact hydroelectric energy facility, biomass energy facility, wind energy facility or a solar energy facility shall be at an amount equal to a tax factor times the selling price at the interconnection meter, § 39-4-102(1.5), C.R.S. The methodology and current factors for small or low impact hydroelectric, biomass, wind and solar energy facilities are available on the Division’s website.
Confidentiality - All statements filed with the Administrator are considered confidential and are available only to the Administrator, the employees of the Division, assessors, and the county treasurers, § 39-4-103(2), C.R.S.
Allocation
Unit valuations of state assessed companies include consideration of all property, on a system-wide basis within and without the state. A portion of the system valuation is "allocated" to Colorado.
Allocation methods vary by type of company depending on the physical and economic factors inherent within each company type. Except for railroad company allocations that are based on statutes, the Administrator may select any method or unit of measure that will produce an equitable allocation to Colorado, § 39-4-106, C.R.S. The most common unit is the depreciated or net book value of the property. For the specific industries listed below, state allocation is based on other factors:
Allocation of railroad company valuation is based on the ratio of Colorado main-line railroad track mileage to the total main-line railroad track mileage of the company, § 39-4-106(7)(a)(V), C.R.S.
Allocation of private car line companies valuation is normally based on car miles traveled in Colorado.
Allocation of fluid pipeline valuation is based on an equal weighting of net book value, barrel miles, and inch miles.
Allocation of telephone resellers of long distance service valuation is based on customers in Colorado and gross revenue in Colorado.
After the allocation procedure is completed, non-taxable items, such as the personal property portion of construction work-in-progress, licensed vehicles, materials and supplies, and inventory held for sale are deducted from the value allocated to Colorado.
Equalization and Assessment
Once the allocation procedure is applied, state assessed property valuations are equalized or adjusted to the specified year’s level of value, § 39-4-102(3)(b), C.R.S. The purpose of this adjustment is to equalize the state assessed property valuations with the local valuations of other commercial/industrial property.
The equalization or adjustment factor applied to current actual value is developed from the following economic indicators as of the end of December each year: GDP price deflator, producer price for total finished goods, and GDP non-residential fixed investment and producer prices for capital equipment.
After equalization, the adjusted Colorado actual value is multiplied by an assessment rate to determine the Colorado assessed value. For any personal property that is classified as renewable energy, the property is assessed at 26.4% for tax years 2022, 2023, and 2024. All other taxable personal property is assessed based on the property use.
Railroad and Airline Equalization
In 1976, Congress passed the Railroad Revitalization and Regulatory Reform Act, also known as the 4-R or Quad-R Act. The act mandates that rail transportation property cannot be assessed at a rate higher than the effective assessment rate for other commercial and industrial property in the state.
On September 3, 1982, Congress passed the Tax Equity and Fiscal Responsibility Act (TEFRA). In a manner similar to the Quad-R Act, TEFRA mandates that air transportation property cannot be assessed at a rate higher than the effective assessment rate for other commercial and industrial property. The equalization factor ensures compliance with Quad-R and TEFRA.
Apportionment
The Colorado valuation for state assessed companies is “apportioned” to each county that has the companies’ tangible and/or intangible property, § 39-4-106, C.R.S. The most common apportionment unit is historic cost. If use of the gross cost apportionment methodology clearly imposes inequities among the counties involved, variations may include apportionment by pipe miles, revenue, or customers.
The Colorado valuation for railroad main-line companies and private car line companies is apportioned based on the ratio of track mileage in each county to the total main-line track mileage in Colorado.
Protest and Appeal Remedies
By July 1 each year, the Administrator must notify the assessors of each county in which state assessed property is located and the state assessed company of the valuation of the company, § 39-4-107, C.R.S.
After notification, the company, the assessor, or the board of county commissioners may file a protest petition with the Administrator setting forth the reason for the protest, § 39-4-108, C.R.S. All protests concerning state assessed valuations or apportionments must be filed no later than July 15.
When a protest petition is timely filed by a state assessed company, by a county assessor, or by a board of county commissioners, the Administrator schedules a hearing for the purpose of discussing and reviewing the protest. All such hearings must be held between the first working day after notices are mailed, July 1 and July 27. Companies and counties are notified in writing of the date of the hearing at least five days prior to the scheduled hearing, § 39-4-108(3), C.R.S. The Administrator shall notify all affected parties of the decision by August 1, § 39-4-108(5), C.R.S.
The decision of the Administrator may be appealed to the Board of Assessment Appeals (BAA) within thirty (30) days of the entry of the Administrator’s decision or to the Denver District Court within thirty (35) days of the entry of the Administrator’s decision, § 39-4-108(8), C.R.S. An appeal to the BAA or Denver District Court is a de novo hearing, § 39-4-108(8), C.R.S., and Board of Assessment Appeals v. Valley Country Club, 792 P.2d 299 (Colo. 1990). Final decisions of the BAA are made by agreement of at least two members of the board, § 39-2-127(2), C.R.S.
“[P]etitioner or any other public utility, assessor, or board of county commissioners adversely affected or the Administrator may appeal any decision of the Board of Assessment Appeals or the district court denying a petition in whole or in part to the court of appeals . . . .” § 39-4-109(1), C.R.S. Appeals to the Court of Appeals are filed under § 24-4-106(11), C.R.S.
If the appeal is taken to the Court of Appeals by the state assessed company, the company must pay the full amount of all taxes levied upon its property prior to taking of the appeal to the court, § 39-4-109(2), C.R.S.
The appeal is heard exclusively on the record of the BAA or the district court. No new evidence is considered unless any adversely affected party did not have the opportunity to present such evidence at the BAA’s hearing or at the trial in the district court, § 39-4-109(1), C.R.S.
Assessor’s Role in State Assessment Process
Assessors should review the valuation assigned to all state assessed companies. The following are recommendations for assessor review during the months of July and August.
July Notice of Value (NOV) – Review the data reported – Direct questions or concerns to a Division appraiser
- Review the value and the value apportionment on the current year’s NOV prior to July 15. Compare that information with the values on the prior year’s final NOV. Wide variations in either dollar amount or percent change from the prior year’s valuation may indicate a problem.
- Verify that companies new to the county in the prior year are listed on the NOV.
- Verify that private car line companies that traveled through the county in the prior year are listed on the NOV. One option would be to observe the tracks regularly and log the car markings and car type. However, your count may be inaccurate because private car lines are apportioned solely by main track miles.
- Verify that new construction is listed for companies that added real property to their operations in the prior year.
- Verify that state assessed companies new to Colorado did not submit a Personal Property Declaration Schedule, which could cause a double assessment.
- The Division provides an address and contact person for each company identification number listed on the NOV. Company names on the NOV that do not match the company names on the address list may indicate outdated company information. Please call the State Assessed Section with questions.
- Contact the companies for the location of new construction and value distribution information. Companies are encouraged to report the distribution of value to the assessor in July. However, companies that protest to the Administrator usually wait to send the distribution until after the final value is set, August 1.
August Notice of Value (NOV) – Review the data reported – Direct questions or concerns to a Division appraiser
- Review the final NOV (August 1), verifying that all changes were made.
- Separate the company valuation into real property and personal property. Each company is to report the percentage of its total operating property that is defined as personal property.
Assessors use the information when providing valuation data to each taxing entity for the local growth calculation. Also, under section 20 of article X of the Colorado Constitution, taxing entities may choose to give personal property exemptions or tax credits. Personal property owned by state assessed companies would be included in any exemptions or credits. - Distribute the county value to the proper taxing entities within the county.
If the distribution is not received by August 25, the assessor may rely on the prior year’s distribution percentages, rely on the best information available, contact the company for information, or contact the Division for assistance. - File appeals with the BAA or Denver District Court within the requisite time frame after the Administrator’s decision. A company or a county must appeal the value to preserve its appeal rights.
Analysis for Discrepancies
The valuation for assessment of any state assessed company is assumed to include all operating property, plant and equipment, located within Colorado. The valuations, as assigned by the Division, should be analyzed by the assessor for valuation or apportionment discrepancies. Wide variations either in dollar amount or percentage change from the prior year’s valuation may indicate a problem which should be brought to the attention of the Division of Property Taxation.
Interpreting the Notice of Valuation
Assessors may receive two notices of valuation from the Division; one for state assessed companies and one for private car lines, if railroad properties are located in the county. A notice is mailed July 1 and the final notice is mailed August 1. The notices list the companies that have operating property within the county boundary. A summary of value changes made after August 1, as a result of BAA decisions, court decisions, and corrections of errors, is mailed to assessors in November.
The value stated on the notice is based on what each state assessed company submitted to the Division on its Annual Statement of Property (ASOP). Companies provide information such as a balance sheet and income statement, a five-year income history, and information about destroyed real property and new construction for the local growth (TABOR) limitation and the 5.5 percent statutory property tax revenue limit.
Many times, the value attributable to new construction is not the same as the amount reflected on the building permit, or the value appears lower than what the actual cost of construction would be. The reason is the allocation and apportionment methodologies. Except for railroad companies, calculations are generally based on a comparison or ratio of the net book value of the Colorado assets to the net book value of the entire company, which is the allocation of value to Colorado. Then, the apportionment to the county is based on the ratio of the original installed cost of assets in the county to the original installed cost of the assets in Colorado. Whenever questions arise, contact the appropriate appraiser within the State Assessed Section of the Division.
State Assessed Company Notice of Valuation
Colorado State Assessed Property
Notice of Valuation -County Summary
August 1, 20xx
Colorado County
| ID | Company Name | $ Assessed | $ Actual | 5.5% Limit | Tabor Actual |
|---|---|---|---|---|---|
| AL004 | ABX Air, Inc. | $100,804 | $347,600 | $0 | $0 |
| TX414 | ACN Communications Services, Inc. | $812 | $2,800 | $0 | $0 |
| AL823 | Air Wisconsin | $1,548,513 | $5,339,700 | $0 | $0 |
| TX525 | Airnex Communications, Inc. | $87 | $300 | $0 | $0 |
| AL005 | American Airlines | $1,300,012 | $4,482,800 | $0 | $0 |
| TX991 | AmeriVision Communications, Inc. | $12,789 | $44,100 | $0 | $0 |
| AL674 | Astar Air Cargo fka DHL | $101,587 | $350,300 | $0 | $0 |
| TL369 | AT&T Communications, Inc. | $8,544,995 | $29,465,500 | $0 | $0 |
| RR345 | BNSF Railway Company | $2,162,791 | $7,457,900 | $0 | $0 |
| TL031 | Broadwing Communications LLC (fka: CIII) | $21,199 | $73,100 | $0 | $0 |
| AL633 | Champion Air aka Grand Holdings | $14,790 | $51,000 | $0 | $0 |
| AL766 | Chautauqua Airlines | $112,114 | $386,600 | $0 | $0 |
| PT328 | Colorado Interstate Gas Company | $15,121,296 | $52,142,400 | $0 | $0 |
| AL017 | Comair | $513,909 | $1,772,100 | $0 | $0 |
| TX108 | Cooperative Communications, Inc. | $87 | $300 | $0 | $0 |
| TX160 | CTI Long Distance. Inc. | $609 | $2,100 | $0 | $0 |
| TR475 | El Paso County Telephone Company | $1,845,792 | $6,364,800 | $371,200 | $11,700 |
| TX271 | Enhanced Comm Network, Inc. | $493 | $1,700 | $0 | $0 |
| TL677 | France Telecom Long Distance USA, LLC | $8,207 | $28,300 | $0 | $0 |
| EN304 | Front Range Power LLC * | $29,149,814 | $100,516,600 | $0 | $0 |
| TX147 | GTC Telecom Corp | $899 | $3,100 | $0 | $0 |
| AL739 | Horizon Air Industries | $2,001 | $6,900 | $0 | $0 |
| ER077 | Intermountain Rural Electric Association | $337,705 | $1,164,500 | $0 | $0 |
| TX865 | Inter-Tel Net Solutions | $39,411 | $135,900 | $0 | $0 |
| PT920 | KM Interstate Gas Transmission LLC | $2,987 | $10,300 | $0 | $0 |
| TX515 | LDMI Telecommunications, Inc. | $203 | $700 | $0 | $0 |
| TX762 | Matrix Telecom, Inc. | $87 | $300 | $0 | $0 |
| TL391 | MCI Metro Access Transmission Services | $117,914 | $406,600 | $0 | $0 |
| AL663 | Mesa Air Group | $3,909,287 | $13,480,300 | $0 | $0 |
| TM459 | MetroCall, Inc | $73,602 | $253,800 | $0 | $0 |
| TX751 | Norlight Telecommunications, Inc. | $10,904 | $37,600 | $0 | $0 |
| AL030 | Northwest Airlines | $1,483,611 | $5,115,900 | $0 | $0 |
| PF320 | Phillips Pipe Line Company | $214,687 | $740,300 | $0 | $0 |
| TX347 | Primus Telecommunications, Inc. | $25,404 | $87,600 | $0 | $0 |
| TM602 | Qwest Wireless LLC | $3,359,389 | $11,584,100 | $0 | $0 |
| AL747 | Ryan International Airlines | $812 | $2,800 | $0 | $0 |
| AL561 | SkyWest Airlines | $5,278,812 | $18,202,800 | $0 | $0 |
| TL607 | SMC of Colorado Springs, CO | $66,613 | $229,700 | $0 | $0 |
| TX684 | Talk America, Inc. | $30,102 | $103,800 | $0 | $0 |
| TX348 | Telemanagement Systems, Inc. | $2,494 | $8,600 | $0 | $0 |
| TL060 | Transaction Network Services, Inc. | $235,509 | $812,100 | $0 | $0 |
| TX413 | Transworld Network Corp | $87 | $300 | $0 | $0 |
| AL049 | United Airlines | $669,697 | $2,309,300 | $0 | $0 |
| TX270 | Unity Communications, Inc. | $406 | $1,400 | $0 | $0 |
| TM455 | Verizon Wireless (VAW) LLC | $5,397,393 | $18,611,700 | $1,555,400 | $1,393,800 |
| TM499 | VoiceStream PCS II aka T-Mobile | $2,712,602 | $9,353,800 | $0 | $0 |
Column One - ID: The numbers shown in this column are tied to specific companies. The two alpha-characters identify the type of company; the three numeric-characters identify the company. Together, they create a unique number for each company. The alpha-character identifications are shown below.
Airlines ...............................................AL
Renewable energy companies ..........EG
Electric companies ............................EL
Affiliated power producers .................EN
Rural electric companies ...................ER
Gas distribution pipelines ..................PD
Fluid pipelines ...................................PF
Gas transmission pipelines ...............PT
Railroad .............................................RR
Private car lines .................................PC
Telephone companies........................TL
Mobile telephones .............................TM
Rural telephones................................TR
Telephone resellers ...........................TX
Water companies ...............................WA
Column Two - Company Name: The name of the company is identified in this column.
Column Three - $ Assessed: The amount listed in this column represents the assessed value of the real and personal property for each company. The assessor splits either the actual or assessed value between real and personal property based on information obtained from the company or according to the company type. The value is distributed by taxing entities/tax areas based on the location of the company’s operating property. Details on distribution are discussed in the section below.
Abstract of Assessment: The total value, split between real and personal, is shown on the State Assessed Property class page of the abstract. The state assessed values for each city/town and school district are also listed in the abstract.
Certification of values to taxing entities: The total assessed value is included in the “current year’s gross assessed value” under the 5.5% limit data, for each taxing entity.
Column Four - $ Actual: The amount listed in this column represents the actual value of the real and personal property for each company. The assessor splits either the actual or assessed value between real and personal property based on information obtained from the company or according to the company type. The value is distributed by taxing entities/tax areas based on the location of the company’s operating property. Details on distribution are discussed in the section below.
Certification of values to taxing entities: The actual value of the real property is included in the “current year’s total actual value of all real property” under the TABOR revenue limit data, for each taxing entity.
Column Five – 5.5% Limit: The new construction value listed in this column is a component of the formula used for calculating the 5.5% limit.. The amount represents the assessed value of new real property and new personal property connected to new real property, additions to structures, and substantial remodeling. It is not necessary to split the new construction value between real and personal property, because both real and personal are included for the purposes described below.
Abstract of Assessment: The total new construction value is listed on the New Construction page of the abstract, under the state assessed subclass.
Certification of values to taxing entities: The new construction value is distributed to each taxing entity/tax area based on where the new construction is located. Generally, the new construction is located at a single or small number of sites, and the distribution percentages for the new construction will not match the distribution of the total value. When the assessor is unable to obtain this information, the methodology employed to distribute the total company value may be used. The state assessed new construction is included with taxable new construction from other property classes and reported by taxing entity for non-school entities.
When a new power line or pipeline (personal property) is constructed, the construction often includes a new building or structure (real property). When this occurs, the NOV should list both the real property structure and the new pipeline or power line extending away from the structure. In some instances, this can result in the reporting of newly constructed personal property for the 5.5% limit that is associated with new real property located in a different county.
Column Six – TABOR Actual: The new construction value listed in this column is a component of the formula used for calculating “local growth” for the TABOR revenue and spending limitations. The amount represents the actual value of new real property less destroyed real property. It is not necessary to split the new construction value between real and personal property, as the value includes only real property.
Certification of values to taxing entities: The new construction value is distributed to each taxing entity/tax area based on where the new construction is located. Generally, the new construction is located at a single or small number of sites, and the distribution percentages for the new construction will not match the distribution of the total value. When the assessor is unable to obtain this information, the methodology employed to distribute the total company value may be used. The state assessed new construction is included with taxable new construction from other property classes and reported by taxing entity for non-school entities.
State Assessed Private Car Line Notice of Valuation
Colorado State Assessed Property - Private Carline
Notice of Valuation - County Summary
August 1, 20xx
Colorado County
| ID | Company Name | $ Assessed | $ Actual |
|---|---|---|---|
| PC930 | Ag Processing Inc. | $1,189 | $4,100 |
| PC181 | AMG Resources | $87 | $300 |
| PC604 | Centennial Gas Liquids, LLC | $87 | $300 |
| PC702 | Cryo-Trans, Inc. | $812 | $2,800 |
| PC036 | Dakota Gasification Company | $203 | $700 |
| PC148 | Equistar Chemicals, LP | $203 | $700 |
| PC100 | Exelon Generation Company, LLC | $1,508 | $5,200 |
| PC231 | Fuel Supply Trust | $812 | $2,800 |
| PC719 | Golden Leasing | $87 | $300 |
| PC664 | Intercoastal Leasing | $406 | $1,400 |
| PC878 | J.R. Simplot Co. | $3,799 | $13,100 |
| PC847 | MHF Logistical Solutions | $1,914 | $6,600 |
| PC403 | Midwest Generation, LLC | $87 | $300 |
| PC945 | Northern States Power | $14,094 | $48,600 |
| PC226 | Occidental Chemical Corporation | $609 | $2,100 |
| PC236 | PLM International Inc. | $1,595 | $5,500 |
| PC548 | Praxair, Inc. | $87 | $300 |
| PC926 | Rampart Range Corp. | $290 | $1,000 |
| PC255 | Southwestern Electric Power Company | $1,305 | $4,500 |
| PC287 | Texas Genco fka Reliant Energy | $59,711 | $205,900 |
| PC636 | Transportation Equipment, Inc. | $986 | $3,400 |
| PC985 | Tube City LLC | $203 | $700 |
| PC196 | Tyson Fresh Meats | $87 | $300 |
| PC201 | Well Services of Schlumberger Technology | $87 | $300 |
| PC883 | Wisconsin Electric Power | $899 | $3,100 |
| TOTALS | $91,553 | $315,700 |
Column One -ID: The numbers shown in this column are tied to specific companies. The two alpha-character PC identifies that the company is a private car line; the three numeric-characters identify the car line company. Together, they create a unique number for each car line company.
Column Two - Company Name: The name of the car line company is identified in this column.
Column Three - $ Assessed: The amount listed in this column represents the assessed value of the personal property for each company. (Private car lines are 100 percent personal property.) The value is distributed by taxing entities/tax areas based on the track mileage of the common carrier railroad company(ies). Currently there are two primary common carrier railroad companies operating in Colorado; Burlington Northern Santa Fe (BNSF) and Union Pacific. Details on distribution are discussed in the section below.
Abstract of Assessment: The total value is listed under personal property on the State Assessed Property class page of the abstract. The state assessed values for each city/town and school district are also listed in the abstract.
Certification of values to taxing entities: The total assessed value is included in the “current year’s gross assessed value” under the 5.5% limit data, for each taxing entity.
Column Four - $ Actual: The amount listed in this column represents the actual value of the personal property for each company. (Private car lines are 100 percent personal property.) The value is distributed by taxing entities/tax areas based on the track mileage of the common carrier railroad company(ies). Details on distribution are discussed in the section below.
Distribution of Valuations to Taxing Entities
The law does not assign specific responsibility to any one party for ensuring that the values are properly distributed to the taxing entities. The Division’s position is that the assessor is the final authority in the distribution of value within the county. State assessed companies have traditionally accepted primary responsibility in locating their properties because they have the extensive property location and valuation records.
It is important that assessors provide companies with updated tax area maps or taxing entity maps. It is also important to mail a copy of the documentation for any annexation, inclusion, disconnection, or exclusion in addition to a map for a new taxing entity. The information assists the companies in the value distribution process. Companies that are unable to determine the taxing entities in which their property is located may be asked to provide the location of or the legal descriptions of their properties.
The assessor distributes the values to taxing entities. If an assessor does not understand a company’s distribution method or cannot secure cooperation from a company for property location information, the Division appraiser handling the company will provide assistance in resolving the issue.
If information is not received or is unavailable from the company, the assessor may use the distribution percentages from the prior year, may contact the Division for assistance, or may use the best information available.
Companies that do not protest their valuations report their distribution of values to the assessor during the month of July. Companies that protest their valuations in July report their distributions after the Division renders decisions on appeals on August 1. When the distribution is received, the values are entered into the county’s records.
In addition to the value distribution, each company reports the percentage of its total operating property that is attributable to personal property. Assessors include this information in the certification of values to taxing entities. Also, pursuant to the provisions of § 20(8)(b), art. X, COLO. CONST., the state and local governments can enact exemption credits to reduce or end taxation of personal property. State assessed companies’ personal property would be included in any exemptions or credits.
Distribution of Non-Railroad Company Values
The county valuation can be distributed by tax area or taxing entity. The distribution information supplied by each company should be reviewed for accuracy. In the review, verify that the company’s distribution reflects the value shown on the final NOV, that new tax areas are included in the company distribution, and that the distribution amounts look reasonable. It is beneficial to compare the current year’s distribution to prior year’s distribution.
The county value for airlines, electric companies, rural electric companies, telephone companies, gas companies, gas pipeline carrier companies, fluid pipelines, and domestic water companies is distributed at the county level based on the location of the companies’ operating property.
Example – The company value distributed by tax area
The Division reported an assessed value of $3,449,400 on the final NOV. The distribution letter received from Quad-State Electric Company shows that 90 percent of its property is personal property. The company value is distributed as follows:
| Tax Area | Percent | Mill Levy |
|---|---|---|
| 1 | 26.30% | 073.852 |
| 2 | 1.70% | 102.930 |
| 3 | 24.00% | 091.002 |
| 4 | 48.00% | 062.632 |
First - Verify that the company used the August 1 NOV value
Second - Total the percentages to make sure they equal 100%
Third - Determine the value distribution to each tax area
Fourth - Determine the value distribution of the real and personal property to each tax area
Fifth - Verify work: sum distributed amounts to ensure they equal the full company value
FIRST: The company used the August 1 NOV value of $3,449,400.
SECOND: Total the percentages to make sure they equal 100%.
26.3% + 1.7% + 24.0% + 48% + 100%
THIRD: Determine the value distribution to each tax area.
Tax area 1: $3,449,400 × 0.263 (26.3%) = $ 907,192
Tax area 2: $3,449,400 × 0.017 (1.7%) = $ 58,640
Tax area 3: $3,449,400 × 0.24 (24%) = $ 827,856
Tax area 4: $3,449,400 × 0.48 (48%) = $1,655,712
FOURTH: Determine the value distribution of the real and personal property to each tax area.
Tax area 1: $907,192
$907,192 × 0.90 (90%) = $816,473 Personal property 8499
$907,192 × 0.10 (10%) = $ 90,719 Real property 8299
Tax area 2: $58,640
$58,640 × 0.90 (90%) = $52,776 Personal property 8499
$58,640 × 0.10 (10%) = $ 5,864 Real property 8299
Tax area 3: $827,856
$827,856 × 0.90 (90%) = $745,070 Personal property 8499
$827,856 × 0.10 (10%) = $ 82,786 Real property 8299
Tax area 4: $1,655,712
$1,655,712 × 0.90 (90%) = $1,490,141 Personal property 8499
$1,655,712 × 0.10 (10%) = $ 165,571 Real property 8299
FIFTH: Verify work: sum distributed amounts to ensure they equal the full company value.
$816,473 + $90,719 + $52,776 + $5,864 + $745,070 + $82,786 + $1,490,141 + $165,571 = $3,449,400
Example – The company value distributed by taxing entity
The Division reported an assessed value of $1,347,100 on the final NOV. The distribution letter received from Quality Gas Company shows that 98 percent of its property is personal property. The notification also shows the company value is distributed as follows:
County $1,347,100
School District A-1 $ 275,960
School District JT-4 $1,071,140
Quick Fire $ 563,000
First - Verify that the company used the Aug. 1 NOV value
Second - Determine the value distribution of the real and personal property to each taxing entity
Third - Verify work: sum distributed amounts to ensure they equal the full company value
FIRST: The company used the August 1 NOV value of $1,347,100.
SECOND: Determine the value distribution of the real and personal property to each taxing entity.
County:
$1,347,100 × 0.98 (98%) = $1,320,158 Personal property 8499
$1,347,100 × 0.02 (2%) = $ 26,942 Real property 8299
School District A-1:
$275,960 × 0.98 (98%) = $270,441 Personal property 8499
$275,960 × 0.02 (2%) = $ 5,519 Real property 8299
School District JT-4:
$1,071,140 × 0.98 (98%) = $1,049,717 Personal property 8499
$1,071,140 × 0.02 (2%) = $ 21,423 Real property 8299
Quick Fire:
$563,000 × 0.98 (98%) = $551,740 Personal property 8499
$563,000 × 0.02 (2%) = $ 11,260 Real property 8299
THIRD: Verify work: sum distributed amounts to ensure they equal the full company value.
[insert equation 11.17]
County: $1,320,158 + $26,942 = $1,347,100
School Districts: $270,441 + $5,519 + $1,049,717 + $21,423 = $1,347,100
Example – The company provided the distribution by tax area; however, the county wants to distribute the information by taxing entity
The Division reported an assessed value of $3,449,400 on the final NOV. The distribution letter received from XYZ Electric Company shows that 90 percent of its property is personal property. The distribution also shows the company value should be distributed as follows:
| Tax Area | Value |
|---|---|
| 1 | $907,192 |
| 2 | $58,640 |
| 3 | $827,856 |
| 4 | $1,655,712 |
First - Verify that the company used the Aug. 1 NOV value
Second - Determine which taxing entities have the authority to levy in each of the tax areas
Third - Give the company value in each tax area to each entity authorized to levy in that tax area
Fourth - Sum the value for each taxing entity
Fifth - Determine the value distribution of the real and personal property
Sixth - Verify work: sum value distributed to school districts to ensure they equal the full company value
FIRST: The company used the August 1 NOV value of $3,449,400.
SECOND: Determine which taxing entities have the authority to levy in each of the tax areas.
In the example below, the “×” indicates which entities have the authority to levy in each of the tax areas.
| Tax Area | County | City | School 1B | School 2A | Fire | Water/San | Cemetery |
|---|---|---|---|---|---|---|---|
| 1 | x | x | x | x | |||
| 2 | x | x | x | x | |||
| 3 | x | x | x | x | x | ||
| 4 | x | x | x | x |
THIRD: Give the company value in each tax area to each entity authorized to levy in that tax area.
FOURTH: Sum the value for each taxing entity.
| Tax Area | County | City | School 1B | School 2A | Fire | Water/San | Cemetery |
|---|---|---|---|---|---|---|---|
| 1 | $907,192 | $907,192 | $907,192 | $907,192 | |||
| 2 | $58,640 | $58,640 | $58,640 | $58,640 | |||
| 3 | $827,856 | $827,856 | $827,856 | $827,856 | $827,856 | ||
| 4 | $1,655,712 | $1,655,712 | $1,655,712 | $1,655,712 |
FIFTH: Determine the value distribution of the real and personal property.
| Entity | Entity Value | %PP | Personal | Real |
|---|---|---|---|---|
| County | $3,449,400 | 90% | $3,104,460 | $344,940 |
| City | $58,640 | 90% | $52,776 | $ $5,864 |
| School 1B | $965,832 | 90% | $869,249 | $96,583 |
| School 2A | $2,483,568 | 90% | $2,235,211 | $248,357 |
| Fire | $1,735,048 | 90% | $1,561,543 | $173,505 |
| Water/San | $2,483,568 | 90% | $2,235,211 | $248,357 |
| Cemetery | $3,449,400 | 90% | $3,104,460 | $344,940 |
SIXTH: Verify work: sum value distributed to school districts to ensure it equals the full company value.
$869,249 + $96,583 + $2,235,211 + $248,357 = $3,449,400
Distribution of Railroad/Private Car Line Values
Colorado statute directs the Administrator to apportion the valuation of a railroad company to each county based on the ratio of main-line track miles in each county to the total main-line track miles in Colorado. The Division recommends the assessor use the same theory to distribute railroad, or common carrier, and car line company values within the county, unless it creates inequities.
The Division recommends that private car line company valuations be distributed by tax area or to the taxing entities in proportion to the percentage of common carrier railroad track miles in each tax area or taxing entity compared to the total common carrier track miles in the county.
Distribution of Value for Railroad Companies
The Division reported a value of $510,000 on the final NOV for Fast and Smooth Railroad. The distribution letter shows that 84 percent of its property is personal property. It shows that, based on track mileage, 53.7 percent of the company value should be distributed to tax area 1; 15.2 percent to tax area 3; and 31.1 percent to tax area 4.
First - Verify that the company used the Aug. 1 NOV value
Second - Total the percentages to make sure they equal 100%
Third - Determine the value distribution to each tax area
Fourth - Determine the value distribution of the real and personal property
Fifth - Verify work: Sum distributed amounts to ensure equal the full company value
FIRST: The company used the August 1 NOV value of $510,000.
SECOND: Total the percentages to make sure they equal 100%.
53.7% + 15.2% + + 31.1% = 100.0%
THIRD: Determine the value distribution to each tax area
Tax area 1: $510,000 × 0.537 (53.7%) = $273,870
Tax area 3: $510,000 × 0.152 (15.2%) = $ 77,520
Tax area 4: $510,000 × 0.311 (31.1%) = $158,610
FOURTH: Determine the value distribution of the real and personal property
Tax area 1:
$273,870 × 0.84 (84%) = $230,051 Personal property 8499
$273,870 × 0.16 (16%) = $ 43,819 Real Property 8299
Tax area 3:
$ 77,520 × 0.84 (84%) = $ 65,117 Personal property 8499
$ 77,520 × 0.16 (16%) = $ 12,403 Real Property 8299
Tax area 4:
$158,610 × 0.84 (84%) = $133,232 Personal property 8499
$158,610 × 0.16 (16%) = $ 25,378 Real Property 8299
FIFTH: Verify work: sum distributed amounts to ensure they equal the full company value.
$230,051 + $43,819 + $65,117 + $12,403 + $133,232 + $25,378 = $510,000
Distribution of Value for Private Car Lines
As stated above, private car line company valuations should be distributed in proportion to the percentage of common carrier railroad track miles in each tax area or taxing entity compared to the total common carrier track miles in the county. Currently there are two primary common carrier (class one) railroad companies operating in Colorado; BNSF Railways (BNSF) and Union Pacific (UP).
Counties may have more than one common carrier (class one) railroad company. In that instance, the car line value distribution is based on the total main-line track mileage of both common carrier railroad companies.
Track Mileage for Two Common Carriers
Steps to determine track mileage when county has two common carrier railroad companies:
Total track mileage:
Common carrier railroad company Union Pacific: 100 miles
Common carrier railroad company BNSF: 200 miles
Total mileage = 300 miles
Track mileage and percentage for each tax area:
Tax Area 1: 150 miles ÷ 300 = 0.50 ( 50%) + Tax Area 2: 90 miles ÷ 300 = 0.30 ( 30%) + Tax Area 3: 60 miles ÷ 300 = 0.20 ( 20%) = 1.00 (100%)
Track Mileage for One Common Carrier
Counties may have only one common carrier (class one) railroad company. The car line value distribution is based on the total main-line track mileage for that railroad company.
Steps to determine track mileage when county has one common carrier railroad company:
Common carrier railroad total track mileage:
Common carrier railroad company: BNSF: 175 miles
Common carrier track mileage and percentage in each tax area:
Tax Area 1: 94 miles ÷ 175 = 0.537 ( 53.7%) + Tax Area 2: 26.6 miles ÷ 175 = 0.152 ( 15.2%)+ Tax Area 3: 54.4 miles ÷ 175 = 0.311 ( 31.1%) = 1.00 (100.0%)
Group Method for “Small” Car Line Value
The method described above is used for the distribution of all private car line values. However, an alternate method is available for “small” private car line values. This method is referred to as the “group method.”
Example – Distribution using track mileage for individual companies
The Division reported a value of $28,300 for Trailer Train. Using the distribution information from Fast and Smooth Railroad, determine the value distribution for the company.
First- Verify that the company used the Aug. 1 NOV Value
Second - Determine the value distribution to each tax area using the track mileage from Fast and Smooth Railroad.
Third - Verify work: sum the distributed amounts to ensure they equal the full company value.
NOTE: Car lines are classified as personal property; therefore, there is no value distribution between real and personal property.
FIRST: The company used the August 1 NOV value of $28,300.
SECOND: Determine the value distribution to each tax area, using the track mileage from the railroad company.
Tax area 1: $28,300 × 0.537 (53.7%) = $15,197 Personal property 8499
Tax area 3: $28,300 × 0.152 (15.2%) = $ 4,302 Personal property 8499
Tax area 4: $28,300 × 0.311 (31.1%) = $ 8,801 Personal property 8499
THIRD: Verify work: sum distributed amounts to ensure they equal the full company value.
$15,197 + $4,302 + $8,801 = $28,300
NOTE: Only use for “small” car line values. Companies that have significant value are excluded from this process.
Compared to valuations of other state assessed companies, the total county valuation of any private car line company is generally small. When the small value is distributed to accommodate the various tax areas or taxing entities through which the private cars travel, the result can be many schedules and small tax bills. The private car line companies have indicated that it is more cost effective to pay tax based on a higher rate in the county than to process multiple tax bills. Therefore, if the assessor’s computer system cannot generate one tax bill listing several tax areas or taxing entities, the following distribution process can be utilized to avoid multiple tax bills.
Sum the total valuation of the private car lines that have small values.
Using the percentages derived from track miles reported by common carrier railroad companies operating in the county, calculate the amount of value that should be distributed to each tax area.
Based on the above calculations, the valuations of private car line companies are added together to approximate the value determined for each tax area.
Example – The following calculates the breakdown for all private car line companies in a county
First - Verify that the companies used the Aug. 1 NOV value.
Second - Total the percentages to make sure they equal 100%.
Third - Determine which values are “significant” for the county.
Fourth - Calculate the distribution for the “significant” values.
Fifth - Assign each of the individual company values to one tax area so that the total value listed for each tax area equals the value that should be distributed to each tax area.
NOTE: Car lines are classified as personal property; therefore, there is no value distribution between real and personal property.
| ID | Company Name | $ Assessed | $ Actual |
|---|---|---|---|
| PC099 | ADM Transportation | $1,189 | $4,100 |
| PC125 | California Railcar Corp | $899 | $3,100 |
| PC533 | Cargill, Inc. | $19,691 | $67,900 |
| PC273 | Dow Chemical | $1,798 | $6,200 |
| PC556 | Exxon Corp | $493 | $1,700 |
| PC559 | GE Railcar Services Corp | $5,394 | $18,600 |
| PC878 | JR Simplot | $9,889 | $34,100 |
| PC537 | Mid-American Energy | $203 | $700 |
| PC200 | North American Chemical Co | $1,508 | $5,200 |
| PC234 | Phillips Petroleum Co | $2,204 | $7,600 |
| PC283 | Rail Transportation Services | $11,803 | $40,700 |
| PC271 | T.G. Soda Ash Inc. | $10,295 | $35,500 |
| PC346 | Trinity Rail Management Inc. | $493 | $1,700 |
| TOTALS | $65,859 | $227,100 |
FIRST: The companies used the August 1 NOV values.
SECOND: Total the percentages from the railroad company to make sure they equal 100%.
Track mileage from the railroad company:
Tax area 1: 0.537 = 53.7% + Tax area 3: 0.152 = 15.2% + Tax area 4: 0.311 = 31.1% = 100.0%
THIRD: Determine which values are “significant” for the county.
PC553 Cargill Inc. $19,700 Personal property 8499
PC878 JR Simplot $ 9,900 Personal property 8499
PC283 Rail Transportation Services $11,800 Personal property 8499
PC271 T. G. Soda Ash Inc. $10,300 Personal property 8499
FOURTH: Calculate the distribution for the “significant” values using the track mileage below.
Track mileage from the railroad company:
Tax area 1: 0.537 - 53.7%
Tax area 3: 0.152 - 15.2%
Tax area 4: 0.311 - 31.1%
Cargill, Inc.:
$19,700 × 0.537 = $10,579
$19,700 × 0.152 = $ 2,994
$19,700 × 0.311 = $ 6,127
$19,700
JR Simplot:
$9,900 × 0.537 = $ 5,316
$9,900 × 0.152 = $ 1,505
$9,900 × 0.311 = $ 3,079
$ 9,900
Rail Transportation Services:
$11,800 × 0.537 = $ 6,337
$11,800 × 0.152 = $ 1,794
$11,800 × 0.311 = $ 3,670
$11,800
T. G. Soda Ash Inc:
$10,300 × 0.537 = $ 5,531
$10,300 × 0.152 = $ 1,566
$10,300 × 0.311 = $ 3,203
$10,300
FIFTH: Sum the total valuation of the private car lines that have “small” values.
PC099 ADM Transportation 1,200
PC125 California Railcar Corp 900
PC273 Dow Chemical Co 1,800
PC556 Exxon Corp 500
PC559 GE Railcar Services Corp 5,400
PC537 Mid-American Energy 200
PC200 North American Hem Co. 1,500
PC234 Phillips Petroleum Co 2,200
PC346 Trinity Rail Mgmt. Inc. 500
= $14,200
SIXTH: Calculate the amount of value from car lines that should be distributed to each tax area using the track mileage from the railroad company
Tax area 1: $14,200 × 0.537 - 53.7% = $7,626 Personal property 8499
Tax area 3: $14,200 × 0.152 - 15.2% = $2,158 Personal property 8499
Tax area 4: $14,200 × 0.311 - 31.1% = $4,416 Personal property 8499
SEVENTH: Assign each of the individual company values to one tax area so that the total value listed for each tax area equals the value that should be distributed to each tax area.
| Required Totals → | $7,626 | $2,158 | $4,416 |
|---|---|---|---|
| TA 1 | TA 3 | TA 4 | |
| ADM Transportation. | 1,200 | ||
| Phillips Petroleum Co | $2,200 | ||
| Exxon Corp | 500 | ||
| Calif Railcar Corp | 900 | ||
| Dow Chemical Co | 1,800 | ||
| Mid-American Energy | 200 | ||
| North American Chemical Co | 1,500 | ||
| GE Railcar Service Corp | 5,400 | ||
| Trinity Rail Mgmt. Inc. | 500 | ||
| Actual Totals | $7,600 | $2,200 | $4,400 |
Maps
To make proper value distributions, state assessed companies must have up-to-date tax area or taxing entity maps. It is important that assessors provide companies with updated tax area maps or taxing entity maps. It is also important to mail a copy of the documentation of any annexation, inclusion, disconnection, or exclusion in addition to a map for a new taxing entity. The companies use the information in the distribution process. Without the updated information, state assessed companies cannot properly distribute their valuations. Further, some taxing entities will not receive all the value to which they are entitled.
Companies that are unable to determine the taxing entities in which their property is located may be asked to provide the location of or the legal descriptions of their properties.
Property Records
The Division does not keep detailed property records of state assessed companies. The valuations are not “built-up” from property descriptions, and the sheer volume of information prohibits keeping and updating such records. Questions on specific properties are referred to the companies involved.
Land and buildings that are owned by state assessed companies and that are operating property can be listed on the tax roll; however, the properties should not be classified “exempt.” Instead, classify according to use, assign a zero ($0) value, and add an explanation that the value is included in the state assessed value assigned to the county.
Abatements
The abatement process for a state assessed company is somewhat different from the process for other taxpayers. Because an adjustment to a state assessed value affects multiple counties, state assessed companies are asked to contact the Division to request a valuation review prior to filing an abatement petition in a county or counties.
During the state assessed review process, the Division may need assessor assistance in determining if double assessments exist or if there are questions related to the distribution of state assessed values. If the Division determines that an abatement or refund of taxes is warranted for prior years, the Division will notify the affected counties of the adjusted valuation. Assessors who receive abatement petitions without having been notified of adjustments by the Division should contact the State Assessed Section before processing the petitions.
In past years, the Division recommended that county commissioners conditionally approve abatement petitions submitted by state-assessed companies because the valuations are derived at the state level. However, in Huerfano County Board of Commissioners v. Atlantic Richfield Company, 976 P.2d 893 (Colo. App. 1999), the Huerfano County Commissioners, after their conditional approval, disagreed with the Division’s partial approval of an abatement petition and sought to challenge the decision. The court held that the board of county commissioners lacked standing to appeal the Administrator’s ruling on the petition. The court stated:
The record (at the BAA) does not reveal that the BOCC reserved or attempted to reserve any rights for later appeal in making its approval “conditional.” Indeed, there is no legal basis for such an action under the abatement and refund scheme. Rather, by approving taxpayer’s petition, “conditionally” or otherwise, and submitting it to the Administrator for further action, the BOCC’s procedural rights as a party ended under the statutory scheme governing abatement and refund proceedings. See §§ 39-1-113(3), 39-2-116, and 39-10-114.5(1), C.R.S., 1998.
Therefore, if county commissioners believe that the abatement should not be approved, either wholly or partially, they should deny the petition. The county commissioners would have procedural rights to be a party if the denial were appealed to the BAA.
If a state assessed company (public utility) fails to file an ASOP, the Administrator assigns a best information available (BIA) value and mails a notice of the assigned value to the taxpayer. If the public utility does not file a petition or complaint as provided in § 39-4-108, C.R.S., the public utility shall be deemed to have waived any right to file an abatement petition, § 39-4-103(1.5)(c), C.R.S.
Schedules of property – confidential records – late filing penalties.
(1.5)(c) If a public utility fails to file a statement of property and does not file a petition or complaint pursuant to section 39-4-108 regarding the actual value of its taxable property as determined on the basis of the best information available pursuant to this subsection (1.5), the public utility shall be deemed to have waived any right to file an abatement or refund petition regarding such actual value pursuant to section 39-10-114.
§ 39-4-103, C.R.S.
Problem Solving
Occasionally, problems will occur. Recognizing the problems in their early stages prevents loss of revenue to the districts or overpayment by the taxpayers. The following are problems that may occur:
- State assessed company purchases locally assessed real property resulting in double assessments in subsequent year(s).
The assessor should report any transfer of ownership to or from a state assessed company to the Division to determine whether or not it is operating property. The assessor should assume that the property will be state assessed and flag the account for
follow-up inspection. The state assessed property tax filing is not due until three months after the lien date. If the property should be locally assessed, it should be reinstated as omitted property. - State assessed company sells state assessed property.
State assessed property is valued as of the assessment date and is valued for the entire year. State assessed companies typically bill the buyer for the taxes after the tax bill is received. There is no need to prorate the value for the year the property is sold, and the property should be listed by the county as locally assessed on January 1 following the sale. - State assessed company constructs new facilities and fails to report to the Division.
The assessor should report construction of new facilities to the Division. - State assessed company distributes value to an incorrect taxing entity.
The assessor should notify the company. - State assessed company distributes value to an incorrect tax area.
The assessor should notify the company. - Change in property classification from locally assessed to state assessed and vice versa.
The assessor should contact the Division to confirm status. - A state assessed company files a personal property declaration schedule with the county.
The assessor should contact the Division to determine whether the property should be locally assessed.
The assessor can contact the company representative or the Division when a problem is discovered. If the company representative is unknown, the Division appraiser who handles such companies will provide assistance. The problems listed above are problems of property identification. If questions of valuation arise, such as drastic changes from one year to the next or full value of new construction not being apparent, the assessor should contact the Division appraiser who handles such companies.
State Assessed Renewable Energy Systems
Systems generating two megawatts of electricity or less are locally assessed. The methodology for locally assessed properties is described in ARL Volume 5, PERSONAL PROPERTY VALUATION MANUAL, Chapter 7, Special Issues. All renewable energy systems greater than two megawatts in size are valued as public utility property by the Division. Also classified as public utility property valued by the Division are small or low impact hydroelectric energy facilities, biomass energy facilities, energy storage systems, clean energy resources, wind energy facilities and solar energy facilities as defined in §§ 39-4-101(2.3), (2.4), (2.6), (3.3), (3.5), and (4), C.R.S. The valuation methodology is described in §§ 39-4-102(1)(e) and (1.5), C.R.S., and the methodology and current factors are available on the Division’s State Assessed Property web page.