Chapter 3 - Specific Assessment Procedures

Introduction

The following procedures and processes are listed in alphabetical order and are intended to provide assessors and their staff with guidelines for specific assessment administrative tasks; modification may be necessary depending on county resources. Chapter 4, Assessment Math, contains more detailed instructions for mathematical procedures such as prorating values and computing tax bills.

Taxable Property

All property, real and personal, located in the state of Colorado on the assessment date, January 1, is taxable unless expressly exempted by the Constitution or state statutes, § 3, art. X, COLO. CONST., and § 39-1-102(16), C.R.S.

Colorado Valuation Procedures

Most property classes in Colorado are valued using the three approaches to value: the market approach, the cost approach, and the income approach. The exceptions to the three approaches include residential real property (market only), agricultural land, and natural resource land (special valuation procedures based on productivity and production). 

The market, cost, and income data that county assessors use to apply the appropriate approaches to value is collected during specific periods prescribed by statute and represents a certain “level of value.” Currently, the data collection periods and level of value change every odd numbered year, § 39-1-104(10.2), C.R.S.

Property taxes are not calculated on the “full actual value” as determined by the assessor. Instead, an assessment percentage is applied according to the classification of the property, §§ 39-1-104(1) and 39-1-104.2, C.R.S. For property tax year 2024, residential property is assessed at 6.70% after an adjustment of $55,000 is applied to the actual value. If the adjustment reduces the total assessed value below $1,000, then the adjustment is reduced so that the assessed value does not fall below $1,000. For property tax year 2024, commercial improved property is assessed at 27.9% after an adjustment of $30,000 is applied to the actual value. If the adjustment reduces the total assessed value below $1,000, then the adjustment is reduced so that the assessed value does not fall below $1,000. For property tax year 2024, agricultural property and renewable energy production property are assessed at 26.4%. Most other properties are assessed at 27.9%. The exceptions are producing mines and producing oil and gas leaseholds, articles 6 and 7 of title 39, C.R.S. 

Specific Administrative Processes

Abatements

Abatement petitions are initiated for a variety of reasons. Most often, abatements are filed by taxpayers for the purpose of reducing a prior year’s tax. The county must act on abatements within six months of filing; therefore, a tracking system is helpful in identifying where an abatement is located in the process. Additional information on abatements can be found in Chapter 5, Taxpayer Administrative Remedies. Petitions for Abatement or Refund of Taxes are available on the Division’s website and are shown in Chapter 9, Form Standards.

Initiating an Abatement

The assessor completes the following steps when processing an abatement petition.

1. Verify the legal description, owner of record, and the owner’s mailing address.
   NOTE: If a petition is filed by an agent, the agent must have written authorization to represent the owner.
2. Examine the property record and determine if an error, illegality or overvaluation exists. If the issue is overvaluation, determine if a protest was filed for the assessment year in question. If no protest was filed, an abatement petition can be approved.
   NOTE: Clerical errors and illegalities are corrected whether or not a protest was filed. An abatement or refund must not be made based upon the ground of overvaluation of property if a protest was filed and a Notice of Determination was issued. However, a statutory exception to the rule exists for personal property when 1) a Notice of Determination has been mailed to the taxpayer, and 2) the taxpayer did not appeal the assessor’s decision to the county board of equalization, and 3) the county assessor has undertaken an audit of the personal property indicating that a reduction in value is warranted, § 39-10-114(1)(a)(I)(D), C.R.S.
   1. Complete steps 6 through 9 below for petitions on which the assessor recommends denial.
   2. Complete steps 3 through 9 below for petitions on which the assessor recommends approval in whole or in part.
3. Determine the assessed value attributable to the value adjustment, if any. The taxpayer or agent may have stated only the actual value on the abatement form. The assessed values need to be on the form for the treasurer to make adjustments.
   NOTE: Make sure the appropriate residential assessment rate is used.
4. Verify the tax area, mill levy, and the amount of tax to be abated.
   NOTE: Make sure that the appropriate year’s mill levy is used.
5. Determine if the tax has been paid and verify the amount of tax on the tax warrant.
6. Complete the assessor’s recommendation.
7. Attach documentation needed to support the assessor’s recommendation.
   NOTE: For overvaluation, the assessor prepares evidence for the abatement hearing in the same manner as for an appeal hearing.
8. Keep a copy of the petition and all documentation.
9. Forward the petition to the board of county commissioners.

Data Control Measures

Abstract (class and subclass) reports should be run on a monthly basis to assist the assessor in catching data input and program calculation errors. The following schedule is suggested as a minimum measure.

January 1: Establishes value base on the assessment date.

January 3: Provides values for recertification of values to entities. 
(2024 only)

May 1: Establishes value base before protest period.

July 1: Establishes value base for the required CBOE report.

July 5: Establishes value base after assessor’s protest period.
NOTE: This is important, as the individual class pages of the abstract reflect values as of this time frame.

August 5: Establishes value base after CBOE appeals decisions.
NOTE: This is important, as the cities and towns and school district pages of the abstract reflect values as of this time frame.

August 25: Provides values for the Abstract of Assessment report and certification of values to entities.

Dec. 10: Provides values for recertification of values to entities.
NOTE: The Division recommends the recertification be completed by December 1.

Run an abstract report before and after installing a computer upgrade or when going through a system conversion.

Counties that use the alternate protest and appeals process will modify the above schedule.

The current report should be compared to the prior report. Figures that seem out of line should be verified and corrected if necessary.

After the Abstract of Assessment report has been filed, value changes should be tracked. With this tracking method, the assessor will be able to balance back to the prior report.

The following items are examples of situations to verify:

• Internal codes that are not tied to a subclass code established by the Administrator.
• Classification code with zero value.
• Vacant land classification code with improvement code.
• Exempt classification code with taxable code.
• Mismatched classification codes.
• Improvement classification code with no land code.
• Inordinately large or small values for the class.
• Significant increase or decrease in the number of parcels within a classification (compared to prior year).
• Within a subclass, parcel unit count higher than the improvement count.
• Land value higher than improvement value.
• Zero parcel/unit count for a subclass with a value entry.
• Omission of entire class or subclass (compared to prior year).
• Value entries are rounded to the nearest $10.
• Acreages are rounded to the nearest whole number.
• Proper entry of new construction and destroyed property.
• Proper entry of CBOE adjustments (including the number of adjustments and the value change).
• Verify that the school districts and cities and towns listed in the automated abstract are correct. (If changes occurred, contact the Division.)
• Cities and Towns page must reflect CBOE adjustments.
• School District page must reflect CBOE adjustments.

Great Outdoors Colorado Trust Fund

Each year during the regular tax assessment period, the board of county commissioners of each county in which a state agency has acquired real property shall provide to each state agency that holds such real property interests with the following information, § 33-60-104.5(3)(b), C.R.S:

1. The current assessed value of each real property interest expressed in dollars;
2. The amount of the payment in lieu of taxes (PILT) due on each real property interest, based on the value and tax rate that would be applicable to the real property interest if it were taxable;
3. The date the payment in lieu of taxes is due for such real property interests, based on the date property taxes are due.

Growth Valuation for Assessment

Qualifying counties severely impacted by residential growth may opt to assess new construction that occurs between January 1 and July 1, § 39-5-132, C.R.S. If the county commissioners make a finding of severe growth impact as provided in § 39-5-132, C.R.S., the assessor values new construction on both January 1 and July 1. The prorated value of the construction completed between January 1 and July 1 is added to the assessment roll. If the building is complete on July 1, the value of the construction that occurred between January 1 and July 1 is prorated according to the number of months of the year the building was complete. If the building is not complete on July 1, the value added shall be one-half the difference between the assessed value of the building on January 1 and the assessed value on July 1, § 39-5-132(2)(a)(I)(B), C.R.S.

The classification of the land is based on its status on the January 1 assessment date, which is typically vacant land, unless the newly constructed building is a residential unit. If the newly constructed building is a residential unit and if the land was classified as vacant, the land is reclassified as residential and the assessment rate applied to the land is based on the residential classification, § 39-5-132(2)(c), C.R.S. ARL Volume 3, Real Property Valuation Manual, Chapter 4, Valuation of Vacant Land Present Worth, provides procedures for present worth valuation. In the procedures, it directs that the present worth value is applied only to vacant land. Once a building is on the land, present worth valuation does not apply; thus, the Division suggests the present worth valuation be removed when the land classification is changed to residential due to the installation of a residential improvement.

Taxpayers must be mailed a notice of actual valuation that provides the January 1 value, the prorated valuation of the building, and the total valuation for the entire year. Protests will be heard the following May, at which time the owner can address both valuations, § 39-5-132(2)(a)(I)(C), C.R.S.

A special report must be filed with the county commissioners by August 25 of each year showing the amount of growth for that year, § 39-5-132(3), C.R.S.

Manufactured Homes

Terminology

Manufactured Home

Built to Department of Housing and Urban Development (HUD) standards, manufactured homes are typically placed on a temporary foundation and titled. Manufactured homes can also be placed on a permanent foundation and never titled. Titled manufactured homes may or may not have the axles and wheels in place. For structural reasons, the I-beams must be left in place, even if the home is placed on a permanent foundation. Manufactured homes have a red HUD plate on the left rear side of each section.

Definitions.

(7.8) “Manufactured home” means any preconstructed building unit or combination of preconstructed building units that: (a) includes electrical, mechanical, or plumbing services that are fabricated, formed, or assembled at a location other than the residential site of the completed home; (b) is designed and used for residential occupancy in either temporary or permanent locations; (c) is constructed in compliance with the “National Manufactured Housing Construction and Safety Standards Act of 1974”, 42 U.S.C. sec. 5401 et seq., as amended; (d) does not have motive power; (e) is not licensed as a vehicle; and (f) is eligible for a certificate of title pursuant to part 1 of article 29 of title 38, C.R.S.

§ 39-1-102, C.R.S.

Mobile Home

Many mobile homes that were built to American National Standards Institute (ANSI) standards are typically placed on a temporary foundation and titled. Manufacturers stopped making mobile homes in 1976. Mobile homes typically have no label; however, the state of Colorado had a Mobile Home Certificate label for homes built from 1971-1976, and the label was placed on the left rear side of the home.

Definitions.

(8) “Mobile home” means a manufactured home built prior to the adoption of the “National Manufactured Housing Construction and Safety Standards Act of 1974”, 42 U.S.C. sec. 5401 et seq., as amended.

§ 39-1-102, C.R.S.

Trailer House

This is another term for mobile home.

Modular Home

Modular homes are factory built to standards set by International Residential Code (IRC), and International Building Code (IBC) for non-residential property. Prior to 2003, the standards were set by Uniform Building Code (UBC). Modular homes are typically placed on a permanent foundation and not titled. I-beams may be used during transport for support; however, they are removed when the homes are set. Modular homes are identified by a silver plate located under the kitchen sink.

Definitions.

(8.3) “Modular home” means any preconstructed factory-built building that: (a) is ineligible for a certificate of title pursuant to part 1 of article 29 of title 38, C.R.S.; (b) is not constructed in compliance with the “National Manufactured Housing Construction and Safety Standards Act of 1974”, 42 U.S.C. sec. 5401 et seq., as amended; and (c) is constructed in compliance with building codes adopted by the division of housing in the department of local affairs.

§ 39-1-102, C.R.S.

Factory Built Home

This is another term for modular home.

Panelized Home

Panelized homes are modular homes consisting of packaged components that are assembled on site. They are also built to IRC/IBC/UBC standards.

Camper Trailer

Camper trailers are wheeled vehicles without motive power that are designed to be drawn by motor vehicles over public highways. They are used for temporary living or sleeping accommodations. Camper trailers may have a Recreation Vehicle Industry Association (RVIA) sticker designating them as recreational vehicles and is located inside the door to the trailer. A camper trailer generally has a license plate issued to the owner by county motor vehicle. Multipurpose trailers and trailer coaches are also considered temporary living or sleeping accommodations.

Park Model

Park models are considered recreational vehicles by the Division of Housing. They may have an RVIA sticker designating them as recreational vehicles. Some manufacturers construct park models to IRC standards and place the factory-built plate under the kitchen sink. Other manufacturers construct manufactured homes built to HUD standards that resemble park models. If the structure is not plated by the county motor vehicle division, the assessor should classify it according to use and place a taxable value on the structure.

Sale of New or Used

The seller is responsible for making sure that all property taxes have been paid on a titled manufactured home. When an application for a Certificate of Title is submitted to the State Division of Motor Vehicle by the new owner, it shall be accompanied by an Authentication of Paid Ad Valorem Taxes, also called Authentication/Certification – Manufactured Home Tax, (authentication form) issued by the county treasurer. The manufactured home authentication form is available on the Division’s website at the Forms Index web page and is shown in Chapter 9, Form Standards.

The authentication form indicates that no property taxes for previous years are due on the titled manufactured home. The seller of a titled manufactured home must provide the buyer with a Certificate of Title to facilitate the transfer of the title. The seller must also provide a listing of the household furnishings included in the sale price, §§ 38-29-106, and 107, 39-5-203(3)(a), C.R.S. The seller or the purchaser must file a Manufactured Home Transfer Declaration(MHTD) with the county clerk and recorder, § 39-14-103, C.R.S.

The buyer must apply for a new title from the authorized agent of the county (county clerk or motor vehicle division) within 45 days of the sale of a new manufactured home or within 30 days of the sale of a used home. The authentication form is given to the clerk along with the application for title. The application must be filed in the county where the titled manufactured home is located, and must show the applicant’s source of title and the new or resale price of the manufactured home. It is the responsibility of the buyer to notify the county assessor where the titled manufactured home will be located, the new address, and transfer of ownership, §§ 38-29-108(1) and 38-29-112(1), C.R.S. If the buyer or the seller does not file the Manufactured Home Transfer Declaration, the assessor shall notify either the buyer or seller, §39-14-103(1)(b)(II), C.R.S.

Upon the sale or transfer to a dealer of a manufactured home for which a title has been issued, the dealer is not required to transfer the title of the manufactured home into the dealer’s name as long as the home remains in the dealer’s inventory for sale and for no other purpose, § 38-29-115, C.R.S.

Manufactured Home Transfer Declaration

When a titled manufactured home is conveyed, a completed Manufactured Home Transfer Declaration (MHTD) must accompany the application for new title, § 39-14-103(1)(a), C.R.S. The clerk and recorder does not record the MHTD. The clerk transmits the declaration to the county assessor. The MHTD is a resource for assessors’ in the sales confirmation process that contains valuable information about the sale or transfer of a titled manufactured home.

If a MHTD does not accompany an application for Certificate of Title, the county clerk and recorder shall notify the county assessor that the MHTD was not provided. Upon receiving notice that the MHTD was not filed, the assessor shall send a written notice to the buyer or seller that the MHTD must be filed with the county assessor within 30 days or a penalty of $25 or 0.025% of the sales price, whichever is greater, may be imposed annually until the MHTD is submitted or the home is subsequently conveyed. The Manufactured Home Transfer Declaration is available on the Division’s website and is shown in Chapter 9, Forms Standards.

NOTE: The Real Property Transfer Declaration (TD-1000) is used for real property, including manufactured homes that are permanently affixed to the land and transferred by deed.

Permanently Affixed to the Ground

Certificate of Permanent Location for a Manufactured Home

The owner of a titled manufactured home must file for recording a Certificate of Permanent Location for a Manufactured Home (Certificate of Permanent Location) when the home becomes permanently affixed to an existing site, or it is transported to a site and is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways, and shall present a Certificate of Title together with an application to purge the title from the records manufactured home, the Certificate of Permanent Location must include a copy of the bill of sale and the Manufacturer’s Certificate or Statement of Origin. The titled manufactured home then legally becomes real property, §§ 38-29-112(1.5) and 38-29-202, C.R.S. This means, among other things, that the classification of the manufactured home will change, future transfers of the property will be by deed, and that if property taxes are not paid, a treasurer’s deed cannot be issued for at least three years from the date of the sale of the tax lien certificate. The manufactured home that has a Colorado Certificate of Title shall be valued and taxed separately from the land until the titled manufactured home is permanently affixed to the ground so that it is no longer capable of being drawn over the public highways, § 38-29-112(1.5), C.R.S.

The Certificate of Permanent Location includes items such as: identification of the manufactured home, the legal description of the real property to which the manufactured home has been permanently affixed, verification that the manufactured home is on a permanent foundation, a consent statement by the lien holders(s) if the home is financed, etc. § 38-29-202(2), C.R.S.

Certificate of Permanent Location for a Manufactured Home Subject to a Long-Term Land Lease

Effective July 1, 2009, the owner(s) of a titled manufactured home must file a Certificate of Permanent Location for a Manufactured Home Subject to a Long-Term Land Lease (Certificate of Permanent Location, LTL) when the home is permanently affixed (no longer capable of being drawn over the public highways) to land that is subject to a long-term lease of at least 10 years. For a manufactured home that is titled, the Certificate of Permanent Location, LTL must include an application to purge the Certificate of Title. For a new manufactured home, the Certificate of Permanent Location, LTL must include a copy of the Bill of Sale and the Manufacturer’s Certificate or Statement of Origin.

By signing the Certificate of Permanent Location, LTL, the owner(s) of the manufactured home and the owner(s) of the land subject to the long-term lease consent to the affixation of the manufactured home to the land. The owner(s) of the land and the owner(s) of the manufactured home also acknowledge that the home becomes part of the real property after it is permanently affixed and that, upon termination of the long-term land lease, the ownership of the manufactured home reverts back to the homeowner(s), § 38-29-202(2)(l.5), C.R.S. Both the Certificate of Permanent Location for a Manufactured Home and the Certificate of Permanent Location for a Manufactured Home Subject to a Long-Term Land Lease are available on the Division’s website and are shown in Chapter 9, Forms Standards.

The Division recommends that the assessor physically inspect the manufactured home to verify that the home is on a permanent foundation. Permanent foundation is not defined in statute or by the Division. The Division of Housing generally defines a permanent foundation as a single system for home support and anchoring to the ground. Manufactured homes installed on a permanent foundation must be in accordance with local jurisdictional requirements. An authorized agent must inspect the manufactured home prior to the recordation of the Certificate of Permanent Location.

The State Division of Motor Vehicle will notify the owner and county motor vehicle that the manufactured home Certificate of Title has been purged for ad valorem prior to recording the Certificate of Permanent Location. The assessor will be notified by the county clerk when the Certificate of Permanent Location has been recorded. The home is assessed as a titled manufactured home (1235) for the current year. The following January 1, the land and the manufactured home are listed on one schedule and classified as a single family residence (1112/1212).

Although the statute does not directly address the issue of ownership, legal theory suggests that without other documentation properly establishing a separate ownership (Certificate of Title), the manufactured home becomes attached to, a part of and an appurtenance to the land and the two interests, land and manufactured home, are merged into a single ownership, that of the land. Thus, the assessor should list the land and building as a single ownership.

The purchaser of a new manufactured home that is transported to a site and permanently affixed to the ground so that it is no longer capable of being drawn over the public highways is required to obtain a Certificate of Permanent Location. The owner of the manufactured home shall record the Certificate of Permanent Location along with the Manufacturer’s Certificate or Statement of Origin or its equivalent with the county clerk and recorder and the manufactured home becomes real property when permanently affixed, § 38-29-114(2), C.R.S. The manufactured home is treated as other real property improvements; thus, the home is not assessed until the following January 1. The home and land are listed on one schedule and classified as a single-family residence/land (1112/1212) the following January 1.

Some titled manufactured home owners whose homes are permanently affixed to the ground refuse to surrender their titles for purging from the records because of urging from mortgage holders or personal convictions. These titled manufactured homes are taxed and valued separately from the land until the owner files an application for purging the Certificate of Title and records a Certificate of Permanent Location. If an owner states that the home is on a permanent foundation but has no proof that the title was purged prior to July 1, 2008, the owner can provide an Affidavit of Real Property for a Manufactured Home. The affidavit must include: a statement acknowledging that the home is permanently affixed, a statement from the county assessor that the home has been valued together with the land, a statement from the county treasurer that taxes have been paid on the manufactured home and land together, and proof that no Certificate of Title exists for the manufactured home, § 38-29-208, C.R.S. The Affidavit of Real Property for a Manufactured Home is available on the Division’s website and is shown in Chapter 9, Forms Standards.

Manufactured Home Movement

Existing Homes

The owner of a titled manufactured home has the responsibility of notifying both the county assessor and the county treasurer before moving the home. “Owner” means the owner at the time of the change of location, §§ 38-29-143(1), 39-5-204(1)(a), and 39-5-205, C.R.S.

The assessed value of a titled manufactured home is prorated whenever the manufactured home moves out of or into the state, if the manufactured home becomes the property (inventory) of a dealership if it is located on the dealer’s sales display lot, or if it is sold by a dealer, §§ 39-5-204(1)(c)(II) and 39-5-203(3)(a), C.R.S.

The assessor does not prorate the value if the move is intra-county (within the county) or if the home moves to another Colorado county. If the home is moved within the county, the tax area code is assigned based on the on the location January 1 and will remain on the property for the entire year. January 1 of the following year, the tax area code will need updating to match the new location. A flag in the system may assist in tracking these changes. If the home is moved to another county, upon notification to the treasurer, the taxes become due and payable to the county where the home was located on January 1, § 39-5-205(3)(a), C.R.S.

Upon receiving notification of a home that leaves the state, the assessor prorates the value of the titled manufactured home for the time, in full months, it was in the county. If the home was in the county on the 16th day or later, a full month is counted. If it leaves the state before the 16th, that month is disregarded, § 39-5-205(3)(b), C.R.S. The taxes must be paid prior to the home moving out of the county.

An authentication form is completed when the ownership of a titled manufactured home changes or when a titled manufactured home will be moved. The authentication form shows information such as the current location, future location, value proration, and taxes due, if any. When a titled manufactured home move is intra-county, the “no proration necessary” box on the authentication form is checked. The taxes become due and payable the following January 1 for intra-county moves. When the titled manufactured home moves to another county in Colorado, the value is not prorated; the county treasurer collects the full year’s taxes prior to the move.

When a titled manufactured home is brought into a county from out of state after the assessment date, the titled manufactured home owner must notify the county assessor and the county treasurer, within 20 days, of the location of the manufactured home and the mailing address of the owner. The county assessor must determine the market value of the manufactured home and prorate such value for the amount of time, in full months, remaining in the year. If the titled manufactured home is brought into the state on or after the 16th of the month, that month is disregarded, §§ 38-29-143(1) and 39-5-204(1)(c)(II), C.R.S. If the home is moved from another Colorado county, the home is not assessed until the following January 1 because the home was taxed by the previous county for the full year, § 39-5-205(3)(a), C.R.S.

Refer to Chapter 4, Assessment Math, for proration calculation rules and examples. The prorated value must remain on the assessment roll and is not removed until the tax warrant has been produced.

If the current year’s mill levy has not been set, the prior year’s mill levy should be used in calculating the amount of tax due. When the mill levy for the current year has been set, the prorated taxes on titled manufactured homes that have moved out of the state are recalculated by the treasurer. The treasurer refunds overpayment of taxes after the tax warrant has been produced. Refunds are usually handled through the abatement process. Underpayment of taxes is considered an erroneous assessment by the treasurer and reported with other erroneous assessments as required by law, §§ 39-5-205, 39-10-114(1)(a)(I)(A), and 39-11-107, C.R.S.

When a titled manufactured home is moved from the state, the county treasurer collects the taxes based on the prorated value for the year. The amount of tax paid is shown on the authentication form, § 42-4-510(2)(a), C.R.S. The Authentication/Certification – Manufactured Home Tax form is shown in Chapter 9, Forms Standards.

Existing Homes on Permanent Foundation

The owner of a manufactured home that has been permanently affixed to the land must record a Certificate of Removal prior to movement from its permanent location, § 38-29-203, C.R.S. The Certificate of Removal for a Manufactured Home is available on the Division’s website and is shown in Chapter 9, Forms Standards. However, if a Certificate of Permanent Location was not previously recorded, the owner must record an Affidavit for Real Property for a Manufactured Home along with the Certificate of Removal, §§ 38-29-202 and 208, C.R.S. In order to obtain a Certificate of Title, the owner must provide an application for title, a statement that the identification number has been verified pursuant to § 38-29-122(3)(a), C.R.S., and copies of all conveyance documents affecting the home from the date the home was affixed to the ground. In cases where a manufactured home occupies real property subject to a long-term land lease of at least ten years, a copy of the long-term land lease must be supplied in addition to the above documents. The county clerk will accept these documents as sufficient evidence of the applicant’s proof of ownership of the manufactured home, § 38-29-107, C.R.S.

New Homes

When a new titled manufactured home is sold to a consumer, there are no property taxes immediately due and payable on such home. It was part of the inventory of a dealer or manufacturer, and inventories held primarily for sale are exempt from property taxation. Therefore, neither an Authentication of Paid Ad Valorem Taxes nor a Transportable Manufactured Home Permit from the county treasurer is required to move a new titled manufactured home. Because of this, assessors may not receive notice of every new titled manufactured home that moved into their counties, § 42-4-510(2)(a), C.R.S.

Many manufactured home dealers have their own vehicles for moving the homes they sell. Such dealers usually apply for an annual moving permit. This means there are no single trip permits that provide a record of individual moves. If neither the dealer nor the purchaser of a new home notifies the assessor of the move, the home may not be valued for the assessment year in which it sold. To prevent this from happening, assessors may inspect the records of moving permit holders. Section 42-4-510(2)(b)(II), C.R.S., states the following:

Permits for excess size and weight and for manufactured homes.

(2)(b)(II) Holders of permits shall keep and maintain, for not less than three calendar years, records of all manufactured homes moved in whole or in part within this state, which records shall include the plate number of the towing vehicle; the year, make, serial number, and size of the unit moved, together with the date of the move; the place of pickup; and the exact address of the final destination and the county of final destination and the name and address of the landowner of the final destination. These records shall be available upon request within this state for inspection by the state of Colorado or any of its ad valorem taxing governmental subdivisions.

§ 42-4-510, C.R.S.

Required Permits

The treasurer issues a Transportable Manufactured Home Permit for every titled manufactured home that is moved. The Transportable Manufactured Home Permit is valid for 30 days and for a single trip. The treasurer may charge up to $10 for the permit. The permit is six by eleven inches, printed on a fluorescent orange card, and must be visible during the move, § 42-4-510(2)(a), C.R.S. If the move is within a county or to an adjoining county on county roads, the authentication form serves as the moving permit.

If the move is on state highways, the owner or mover must obtain an excess size transport permit from the Colorado Department of Transportation (CDOT). This permit must be affixed to the manufactured home. Before CDOT will issue the permit, the owner must have an authentication form and a Transportable Manufactured Home Permit issued by the treasurer, § 42-4-510(2)(b), C.R.S. Movers of manufactured homes may apply for a single trip, special, or an annual permit.

Penalties

If the owner fails to notify the county assessor and treasurer of the location change of a titled manufactured home, the owner is guilty of a misdemeanor traffic offense and, upon conviction, shall be punished by a fine of not less than $100 nor more than $1,000, § 38-29-143(2), C.R.S.

The fine for the movement of a titled manufactured home without a permit or a prorated tax receipt and a Transportable Manufactured Home Permit is $200, § 42-4-510(12)(b), C.R.S.

The district attorney shall investigate and prosecute any allegations that a titled manufactured home has been moved without a valid permit. The allegations may be made by any law enforcement official or any employee of a county assessor’s or treasurer’s office, § 42-4-510(10), C.R.S.

Proof of Manufactured Home Identification

In order to obtain specific information regarding a titled manufactured home, an inspector verifies the following: the identification number, the make and year of the manufactured home, and additional information that may be required by the clerk and recorder. The inspector may charge a fee for the inspection; however, the fee shall not exceed a reasonable cost related to the inspection and the inspector must notify the owner of the fee prior to inspection. If the inspector determines that the identification number has been destroyed, the owner must request that the county clerk assign a distinguishing number to the titled manufactured home. The new assigned number must be affixed to the manufactured home in a door frame or fuse box or as determined by the county clerk. A manufactured home inspector may be designated by the county clerk. A Colorado law enforcement officer, a person registered to sell manufactured homes, or a county assessor may be designated as an inspector, §§ 38-29-122 and 123, C.R.S.

Manufactured Home Destroyed

When a titled manufactured home is destroyed, dismantled, sold as salvage, or otherwise disposed of, the owner of the manufactured home, or the owner of the land upon which it is located, must file for recording a Certificate of Destruction for a Manufactured Home with the clerk and recorder of the county where the home is located, § 38-29-204, C.R.S. A completed form shall include a verification that the home has been destroyed and the consent or release of all holders of liens and mortgages or proof that their consent or release was requested and no response was received within 30 days.

NOTE: If the manufactured home was destroyed by a natural cause as defined in § 39-1-102(8.4), C.R.S., please follow the procedures for destroyed property in Chapter 4, Assessment Math.

The Certificate of Destruction must be accompanied by a Certificate of Taxes Due or an Authentication of Paid Ad Valorem Taxes issued by the county treasurer. If a Certificate of Title was issued that has not been purged, the Certificate of Destruction must also be accompanied by an application to cancel the Certificate of Title.

However, if a governmental entity has deemed the manufactured home to be materially dangerous or hazardous pursuant to local building or health codes, the owner of the land upon which the manufactured home is located may file and record a Certificate of Destruction without attaching a Certificate of Taxes Due or an Authentication of Paid Ad Valorem Taxes and without filing an application to cancel a Certificate of Title. The Certificate of Destruction must be accompanied by evidence of the violation of building or health codes.

The Certificate of Destruction for a Manufactured Home is available on the Division’s website and is shown in Chapter 9, Form Standards.

Held as Inventory

Manufactured homes located on sales display lots of manufactured home dealers and listed as inventory of merchandise by such dealers are exempt from property taxation, § 39-5-203(3)(a), C.R.S. Titled manufactured homes taken in trade or purchased by dealers and which remain on locations other than the dealer’s sales display lot are taxable. New or used manufactured homes owned by the dealer, which are situated on locations other than the dealer’s sales display lot are taxable. The value is prorated by the day, based on the date the home changed taxable status.

A Special Notice of Valuation should be sent to a taxpayer when a titled manufactured home loses exempt status because it is moved out of dealer inventory or off the sales display lot.

Soldiers’ and Sailors’ Civil Relief Act – Exemption

A federal law, known as the Soldiers’ and Sailors’ Civil Relief Act of 1940, prohibits the taxation of personal property, except that used in a trade or business, owned by United States military personnel who are not legal residents of the state, and who are absent from their home states and stationed in another state solely by reason of military orders. The exemption is applicable to titled manufactured homes that are owned by such military personnel and that are not permanently affixed to the land on which they are located.

Assessors of counties wherein such titled manufactured homes are located should have on file a statement by all military persons owning such homes that they are the owner, they use the home as their residence while stationed in Colorado, and they are not a legal resident of Colorado. The statement should also be signed by the appropriate military officer of the base, such as the judge advocate or commanding officer.

Non-residential Use

Manufactured homes with a non-residential use are classified according to their use and the corresponding assessment rate is applied to the actual value. An example of this is a manufactured home used as a sales office.

Camper Trailers, Multipurpose Trailers, and Trailer Coaches

Camper trailers, multipurpose trailers, and trailer coaches are categorized as Class D vehicles, and are issued plates by the county clerk of the county in which the owner resides. The controversy occurs when these types of trailers are parked in one place for an extended period of time. For definitions and classification guidelines, see Chapter 6, Property Classification Guidelines and Assessment Percentages.

Exemption

Commencing January 1, 2022, a titled mobile home or manufactured home with an actual value of $28,000 or less is exempt from the levy and collection of property taxation, §39-3-126.5(3), C.R.S.

Mapping Processes

Processing Plats

Subdivision and condominium plats can be processed at any time during the year. The original parcel value and classification must remain the same as assigned to the property on the January 1 assessment date.

1. Make one copy of the plat for the appraisal file and one copy for the mapping file. (Mapping section)

   1. Appraisal file (all pages).
   2. Mapping file (first page only for condo plats).

   NOTE: See Subdivision, Townhome, Condominium, and PUD Plats for map maintenance.

2. Review the plat for the following:

   1. Verify the subdivided property by confirming the legal description and acreage.
   2. Verify ownership - does the owner listed on the plat match the owner listed on the ownership record and declaration? IT MUST!
   3. Verify that the owner(s) signed the plat and that it has been acknowledged.

   If the plat is not signed by the owner(s), contact the planning department or owner of record and find out why.

3. For resubdivision plats, determine when the original subdivision was processed.
   1. If the original subdivision was processed prior to the current assessment date, proceed with step 4.
   2. If the original subdivision was processed after the current assessment date, refer to Resubdivision Plats – Processing, following this section for processing procedures.
4. Determine if the roads are dedicated to the county or city and accepted for public use. (Applies to subdivision plats.) This information is generally located in the dedication statement on the plat.
   1. Roads that are dedicated and accepted by the county or city are exempt from taxation.
   2. Roads that are not dedicated and accepted are taxable and should be listed under the property owner’s name and classified as 0100 or 0200.
5. Is the common area owned by a conforming common interest and ownership community? (Applies to subdivisions.) Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 7, Special Issues in Valuation.
   1. If so, the value of the common area should be reflected in the value of the individual subdivision lots and the common area should not be separately assessed. The common area should be assigned a parcel or schedule number and also be flagged with a code that prevents NOVs and tax bills from being processed for these common area accounts.
   2. If not, the common area should be valued separately and carried under the property owner’s name, usually the homeowner’s association.

6. For condominiums, review the declaration for the following:

   1. Verify the unit numbers on the declaration along with the percentage of general common elements per unit. Total the percentages; they must equal 100 percent. If the plat information differs from the declaration, contact the planning department or owner of record and find out why.
   2. Check for garage or parking space units. Should they have separate appraisal records or are they a part of the common elements?
   3. Verify how the units are owned. (Time share or quarter share, unit numbers or letters, building number or letters, name of the project, garage and parking spaces, etc.)

   A condominium project cannot be processed without a declaration. Watch for missing exhibits listed in the declaration.

7. Create a master (recap) card for the condominium, townhouse, or PUD project. Areas to complete:
   1. City or town.
   2. Notation of the original legal including lot, block and subdivision could be helpful.
   3. Name of the project.
   4. Owner’s name and address, date of the plat and declaration, and reception numbers.
   5. Important remarks concerning the project, such as time share or quarter share, percent complete, date project started, number of buildings, number of units, etc.
8. File a cross-reference card showing the name of the project, the date and reception number of the plat and declaration, etc. under the original legal description. This could avoid unnecessary delays in locating information.
9. Obtain parcel identification numbers from the mapping section for each lot, unit, and common area.

10. Determine the actual and assessed values for land and improvements.

    WHEN PROCESSING PLATS, REMEMBER: Total parcel values are set as of the property status on the assessment date and cannot be increased for the year the plat is filed. The account(s) must be flagged for a value adjustment the following year. Abstract codes are assigned based on the use of the property on the assessment date. The codes are changed the following year.

    1. If a project is broken out before the notice of valuation deadline, the current land and improvement values should be verified with the Appraisal Team.
       NOTE: This check is suggested because the current actual value as of the assessment date may not be listed on the assessment record at the time of processing.
    2. If a project is 100 percent complete on January 1, but the plat for the project was not filed by the completion date, the land and improvement value should be verified with the Appraisal Team.

    3. If a project is broken out after the notice of valuation deadline, the current actual value as of the assessment date is apportioned to the lots or units in the project.

       This apportionment can be based on acreage, buildable units, site, or the percentage a unit has in the general common elements. The method used should be verified with the Appraisal Team.

11. Set up appraisal records for each lot, unit, road, common area, and garage units when applicable. Include the following:
    1. Schedule or parcel number, tax area, abstract classification code(s), name of project or subdivision, building and unit number or the block and lot number.
    2. Name of the current owner, date of the subdivision or condominium plat, condominium declaration, and reception numbers.
    3. Condominiums: The interest percentage in the general common elements attributable to each unit as outlined in the declaration.
    4. Subdivisions, townhomes, and PUD: Acreage of the lot and number of buildable units, if provided.
    5. Land and improvement actual value.
12. Enter new numbers into the computer system. Be sure to deactivate old numbers.
13. Set up the necessary subdivision files.

For additional information on the subdivision approval process, refer to your county planning and zoning guidelines and procedures.

Resubdivision Plats – Processing

Resubdivision plats can be processed at any time during the year, but the original parcel value and classification must remain the same as assigned on the January 1 assessment date.

When the original subdivision is platted and the plat is recorded at the clerk and recorder’s office, the legal description changes from a rectangular survey or a metes and bounds description to lots and blocks of a recorded subdivision. That legal description change and the allocation of the original parcel value are covered in the general policy as shown below:

When an area is replatted, the total value of the new parcels must equal the total value of the platted parcels. The new accounts must be flagged to be reviewed the following January 1 for classification and valuation adjustments. 

If the replatted lots are further subdivided by a 2nd replat, the total value of the new parcels must equal the total value of the parcels in the 1st replat. Again, the new accounts must be flagged to be reviewed the following January 1 for classification and value adjustments.

This is a simplified example of allocation of value for replatted subdivisions of vacant land. Each subdivision and replat is unique and often much more complex. When new plats and replats are recorded, the subdivision covenants and declarations should be carefully reviewed by both administrative and appraisal staff before allocating values to the new parcels.

For the most part, allocations should be based on the same valuation unit, e.g., $ per acre, $ per square foot, etc., that was used to value the original parcel as of January 1 of the current year. Care must be taken to ensure that the total taxable value of the original parcel(s) equals the total taxable value of the new parcel(s). The value and classification established January 1 of the current year must not change until the following January 1.

In cases that are more complex, such as the replatting of mixed use properties, planned unit development parcels, condominium projects, or parcels with different zoning or agricultural soil types, these procedures may require more detailed allocation methods. In any case, it is necessary to maintain the classification and value of the original parcel as of January 1.

Splits and Mergers

1. Review legal description in the transfer document.
2. Locate the appropriate assessment map and plot the new legal on the map.
3. Assign new parcel number(s) according to the map numbering sequence.
4. Write an abbreviated legal description for metes and bounds descriptions.
5. Determine acreage or square footage amounts, if necessary.
6. Create new records as needed.

7. Return source document with new parcel number(s) to the transfer clerk.

   Splits and mergers can be processed any time during the year. However, total parcel values are set as of the property status on the assessment date and cannot be increased or decreased for the year of the split or merger. Abstract codes should be assigned based on the use of the property on the assessment date.

Subdivision, Townhome, Condominium, and Pud Plats

1. Obtain a copy of the plat.
   1. Appraisal file (all pages).
   2. Mapping file (first page only for condo plats).
2. Review the plat, locate the appropriate assessment map, and plot the new legal on the map.
3. Assign new parcel number(s) according to the map numbering sequence.
4. Create new records as needed.
5. Transmit a copy of the plat indicating the new parcel numbers to the person responsible for processing plats.

Boundary Changes for Taxing Entity

1. Review the legal description in the source document.
2. Locate the appropriate assessment map and plot the new boundary on the map.
3. Assign new parcel number(s) according to the map numbering sequence if the boundary line splits an existing parcel.
4. Update or create new records as needed.
5. Return the source document to the person responsible for processing boundary changes.

Formation of a New Taxing Entity

1. Accurately identify those parcels that lie within the boundaries of the new district. The legal description and map of the boundaries of the new district should be verified from the source documents.
2. Once identified, the boundaries of the new district should be plotted onto the appropriate assessment maps and/or tax area maps.
3. A list of the affected parcels based on the assessment or tax area maps should be verified with the assessor’s database. Where necessary, new tax areas should be created and mapped.

Map Maintenance

1. Create new assessment maps as necessary when areas become densely platted.
2. Manual or automated updates should be made to the assessment map mylars or computer generated maps on a regular basis and new paper copies printed as necessary.

Movable Equipment

All portable or movable equipment, which is not subject to specific ownership taxation such as dog racing gates and trash dumpsters, is valued and assessed as provided in § 39-1-103(5)(a), C.R.S. Also refer to §§ 42-3-102(1) and 103(3), C.R.S.

All owners of this type of property must file a Personal Property Declaration Schedule (Form DS 056). If the equipment is expected to be located in more than one county during the year, the owner indicates the counties and the estimated length of time it will be in each county. The assessor making the original assessment (county in which the equipment is first located during the current calendar year) apportions the value among counties affected according to the portion of the year, in days, the equipment will reside in each. A copy of the value is mailed to the equipment owner and to the assessor of each affected county. The value determined by the assessor of the county of original assessment is used by all county assessors involved, §§ 39-5-113(1) and (2), C.R.S.

However, if the equipment is moved into a county not included in the original apportionment, the assessor of the county requests an amended apportionment of value from the county originating the assessment. Failure to request an amended apportionment results in no assessed valuation for taxes on this equipment for the county not included in the original apportionment. If the amended apportionment of value is received by an assessor after the Abstract of Assessment has been filed, either an abatement or an additional assessment (omitted property) shall be made as necessary, § 39-5-113(3), C.R.S.

An exception is oil and gas rotary drilling rigs which are valued and assessed as provided in § 39-5-113.3, C.R.S.

Refer to Volume 5, Personal Property, Chapter 7 Special Issues.

Ports of Entry – Form 301

Mobile machinery and self-propelled construction equipment is generally registered with the county clerk for payment of annual specific ownership taxes in lieu of ad valorem taxation. Owners of equipment located in Colorado for only a portion of the year can also obtain a prorated registration through a Colorado port of entry. However, if such equipment is operated exclusively on property owned or leased by the owner of the equipment and never operated on a public road, the owner may declare it for ad valorem taxation. If such equipment must be moved through a port of entry, it may be detained without proof that the taxes were paid.

To avoid detention, the owner or agent may list the equipment on Form 301, and have it signed by the assessor or deputy in the county of original assessment. Refer to Volume 5, Personal Property, Chapter 7 Special Issues.

Omitted Property

Omitted property consists of any taxable property, such as personal property, land, an improvement, or both land and an improvement, that is not listed on the current assessment roll. A determination must be made as to how long the property has been omitted. Statutory provisions relating to omitted property are listed below.

1. Omitted property is valued and assessed for the current year and up to two prior years when the error or omission is the fault of a governmental entity, § 39-10-101(2)(b)(II), C.R.S. If the omission is not the fault of a governmental entity, the omitted property can be valued and assessed for up to six prior years, unless fraud was committed with the intent to evade taxation, in which case there is no limit on how far back taxes can be collected, §§ 39-10-101(2)(b)(I) and (2)(c), C.R.S. However, omitted residential personal property cannot be assessed for a prior year when its discovery occurs as the result of an advertisement for the rental of the real property in which the furnishings are located, § 39-5-125(3), C.R.S. When property is valued for prior years in which it was omitted, the value must reflect the appropriate level of value for each such year. Oil and gas is the exception with omitted property provisions found in § 39-10-101(2)(d), C.R.S.
2. Omitted property is added to the assessment roll as soon as the assessor discovers the omission. The assessor is also required to notify the treasurer of any unpaid taxes for prior years, § 39-5-125(1), C.R.S.
3. Omissions and corrections on the assessment roll may be processed by the assessor at any time before the tax warrant is delivered to the treasurer, § 39-5-125(2), C.R.S.
4. Once the tax warrant is delivered to the treasurer, the assessor notifies the treasurer of the omitted property and then the responsibility for omitted property, omissions, and corrections is assumed by the treasurer. Such actions are often referred to as “treasurer’s assessments,” §§ 39-5-125(2) and 39-10-101(2)(a), C.R.S.
5. If the property is not omitted but there is an error in the name of the person owing taxes, the treasurer is to correct the name, and then collect the taxes from the proper party, § 39-10-101(3), C.R.S.
6. The county board of equalization shall order the assessor to add to the assessment roll any omitted property which has come to its attention, § 39-8-102(1), C.R.S.
7. All persons owning taxable personal property are required to make full and complete disclosure of their personal property for assessment purposes. If an owner does not make full and complete disclosure after two successive schedules have been mailed, or upon whom the assessor or his deputy has called and left one or more schedules, that owner’s taxable personal property is subject to a penalty of up to 25 percent of the assessed value of the omitted property. However, to apply the penalty, the following conditions must exist: 1) the assessor must allow ten days from the date of notification for the owner to make full and complete disclosure, and 2) the assessor must discover the property that was omitted (the Division recommends a physical inspection to discover property and a book audit to determine value), and 3) the owner must have previously filed a declaration schedule, listing his taxable personal property. This penalty also applies to any taxable personal property in a filed schedule which was represented by false, erroneous, or misleading information. For more information on this procedure, refer to ARL Volume 5, Personal Property Valuation Manual.

When adding omitted property valuation after the statutory close of the assessment period (CBOE can add after NOV deadline or assessor can add after CBOE hearings have concluded), care must be exercised to distinguish the difference between truly omitted property and an undervaluation. If the item of personal property, the improvement, or the land was not listed in the appraisal records and/or its value had not been placed on the assessment roll, the property has been omitted. If a value had been placed on the property and the taxpayer received a Notice of Valuation, and it is later discovered that the property has a greater value, the property has been undervalued and the value cannot be increased. Undervaluation does not qualify as omitted property, In Stitches, Inc., v. Denver County Board of County Commissioners, 62 P.3rd 1080 (Colo. App. 2002). The assessor should be prepared to defend omitted property additions to the assessment roll or tax warrant by use of records which substantiate the omission and the value attributable to the property.

Whenever it is discovered that any taxable property has been omitted from the assessment roll, the assessor shall determine the value of the omitted property and list the property on the assessment roll, as follows.

1. Determine the number of years the property was omitted. The number of years for which a property can be assessed as omitted is discussed previously under this heading.
2. Determine the classification (use) of the property.
3. Calculate the value of the property for the current and any prior years it was omitted.
   NOTE: The value must reflect the appropriate level of value and, if residential, must reflect the appropriate assessment rate Addendum 3-A, History of Data Gathering Periods and Assessment Rates details the correct level of value and assessment rates for past years.
4. Assign a parcel number or schedule number to the property, if necessary.
5. Add the omitted property to the assessment roll.

6. Prepare and mail the owner a special notice of valuation (SNOV) and protest form for each year the omitted property is being assessed. 

   NOTE: You should provide 30 days for the owner to file an objection to the value with the assessor. Owners of real property may also protest the property classification. The assessor must make a decision on the protest and mail a special notice of determination to the owner within thirty days of the date the protest was filed.

   If the assessor denies the protest, if the owner disagrees with the assessor’s determination, or if the owner does not receive a special notice of determination, the owner must file an abatement petition with the county after the tax bill is received in order to appeal the assessor’s decision. The abatement petition must be filed within two years of the January 1 following the year in which the taxes are levied. For omitted property, the taxes are levied on the date the tax bill is mailed. The abatement may be filed for any or all years the property was omitted. Refund interest for omitted property accrues from the date the completed abatement petition is filed or the date the taxes were received by the treasurer, whichever is later.

7. Notify the treasurer of the taxes due for prior years.
   NOTE: The tax calculation must reflect the appropriate mill levy and assessment rates for the omitted tax years. A history of assessment rates is found in Addendum 3-A, History of Data Gathering Periods and Assessment Rates of this chapter.

Omitted Revenue

When taxable property is assigned to the wrong tax area, or when the boundaries of a tax area are drawn incorrectly, some properties listed on the tax warrant may not include the mill levy for one or more taxing entities. Such an event is similar to omitted property in that the properties and their owners may benefit from the services provided by the taxing entity without being subject to the entity’s mill levy. This may result in a loss of revenue to the taxing entity and/or a greater tax burden imposed upon other taxpayers.

When such an omission is caused by assessor error, such as failure to process a recorded inclusion order, the question arises as to whether a correction should be made for prior years or only for the current year forward. Section 39-10-101(2)(a)(I), C.R.S., allows the treasurer to assess and collect taxes for property that was omitted from the tax warrant and not valued for assessment. If the situation above is interpreted literally, the properties in question do not satisfy these requirements.

However, in Aggers, Assessor, v. People Ex Rel. The Town of Montclair, 20 Colo. 348, 38 P. 386 (1894), the court reviewed the occurrence of such an omission and determined that omitted revenue should be collected. In this case, the assessor had failed to extend the mill levies certified over multiple years by the Town of Montclair to property that had been annexed to the town. The town argued that it was entitled to the collection of omitted revenue pursuant to the predecessor statutes to §§ 39-10-101(2)(a)(I) and 39-5-125, C.R.S. The court agreed, finding that although the situation did not fall within the strict letter of statute, it was clearly within its spirit and intent.

The purpose of the statute evidently is to prevent property from escaping taxation through oversight, omission or mistake, and to enable the taxing officers to impose upon all property its just and equal proportion of the public burden. The strict construction contended for by counsel for respondent would prevent the accomplishment of this object and purpose . . . .

No reason can be perceived why the omission to extend or enter the taxes upon property listed and valued would justify the exemption of such property from taxation, when the omission of the property itself from the tax list would not do so (20 Colo., page 351).

The basis for the Aggers decision remains valid today. From the perspectives of the affected parties, namely, the property owner(s), the taxing entity, and the other taxpayers serviced by the taxing entity, when a tax area is assigned incorrectly, the error can result in the non-extension of an entity’s mill levy. The error has the same effect on the parties, as would the omission of the property itself from the tax warrant. Therefore, if the omission was an assessor error, the property is subject to the collection of up to two years’ omitted revenue. A Special Notice of Valuation is not mailed because no change is being made to the value or classification of the property. However, a letter of explanation should be sent to the taxpayer.

If the Board of Assessment Appeals, District Court or an arbitrator orders an increase in value, the assessor makes the correction to the year(s) ordered and presents the order or judgment to the county treasurer who subsequently processes the difference as omitted property according to § 39-10-101(2)(a)(1), C.R.S.

The reporting of omitted revenue to taxing entities on their certification of values is discussed in Chapter 7, Abstract, Certification, and Tax Warrant under 5.5 Percent Statutory Property Tax Revenue Limitation.

Out-of-State Ownership List

The assessor shall furnish annually, by the first day of June to the Department of Revenue a list of the names and addresses of all nonresidents of Colorado who own real and personal property in the county as shown in the assessors records as of the previous assessment date, § 39-5-102(3), C.R.S.

Although the law only requires the name and address of the nonresident, the Department of Revenue requests counties to provide the additional information shown below, using a Microsoft Excel format:

The data may be e-mailed, or a CD or disk may be mailed to the address below.

Department of Revenue 
Audit Selection Committee
Attn: Mr. Lauren Hagge
720 South Colorado Boulevard, North Tower, Suite 400N
Denver, CO 80246

Phone: 303-692-7938
Email: lauren.hagge@state.co.us

Questions concerning electronic submissions should be directed to the Audit Selection Committee at the above telephone number.

Personal Property Issues

After the Assessment Date

If a firm commences business after the assessment date, the property is taxable January 1 of the year following the year it is put into use, § 39-5-110(1), C.R.S. When personal property is newly acquired and put into use, it becomes taxable the following January 1 if the property is used for business purposes, § 39-3-118.5, C.R.S. If the property is in storage, it does not become taxable until January 1 following the year it is put into use, §§ 39-5-104.5 and 110, C.R.S. Refer to ARL Volume 5, Personal Property Valuation Manual, for further information.

The personal property of a firm that quits business after the assessment date is taxable for the entire year, § 39-5-104.5, C.R.S. If either the assessor or treasurer believes that personal property may be removed, dissipated, or distributed so that taxes may not be collected, the treasurer may proceed to collect the taxes immediately, and, if necessary, distrain, seize, and sell the personal property, §§ 39-10-111(1)(a), and 113(1)(a) and (2), C.R.S.

If business personal property is destroyed by a natural cause after January 1 of any tax year, the value for the year of the event is not prorated. However, if all the property that is listed on a single schedule was destroyed, the total assessed value of the account should be tracked for the report to the county treasurer of property taxes that are reimbursable by the state per § 39-1-123, C.R.S. Refer to Chapter 4, Assessment Math.

Incentive Payments

A county, municipality, or special district can enter into negotiations for an incentive payment with owners of new business facilities. A county, municipality, or special district may also negotiate an incentive payment or credit with owners of existing business facilities, located in their jurisdiction, based on verifiable documentation demonstrating that there is a substantial risk that the owner of the existing business facility will relocate it out of state. The incentives cannot exceed 100 percent of the personal property taxes paid to the county, municipality, or special district. For agreements made prior to August 6, 2014, the agreement cannot last more than ten years. For agreements made after August 6, 2014, the agreement may not last longer than thirty-five years, §§ 30-11-123, 31-15-903, and 32-1-1702, C.R.S. Additional incentives are available through income tax credits, real property tax incentives, and sales tax refunds. For further information on these incentives refer to §§ 39-30-105.1 and 107.5, C.R.S.

Personal Property Moved in or Out of State After January 1

Personal property is valued as of the assessment date and is valued for the entire year regardless of any destruction, conveyance, relocation, or change in taxable status, § 39-5-104.5, C.R.S. Personal property removed during the assessment year is taxable for the entire year, § 39-5-104.5, C.R.S. The owner of any personal property that is removed from the state is liable for the entire tax obligation, § 39-5-110(2), C.R.S. When taxable personal property is brought into the state after the assessment date, the owner must complete and file with the assessor a personal property declaration schedule if the actual value of the personal property exceeds the exemption threshold shown below, § 39-5-110, C.R.S.

Personal property is exempt if its actual value is equal to or less than the exemption threshold shown for the applicable tax year. Exempt personal property accounts should be flagged and reviewed annually.

Exemption of Consumable Personal Property

In 2000, the general assembly amended § 39-3-119, C.R.S., to require the Division of Property Taxation to “publish in the manuals, appraisal procedures, and instructions prepared and published pursuant to § 39-2-109(1)(e), a definition or description of the types of personal property that are ‘held for consumption by any business’ and therefore exempt from the levy and collection of property tax pursuant to this section."

The Division has developed two criteria to aid in determining whether personal property is considered consumable, and therefore, exempt from property taxation. To be classified as “consumable,” personal property must fall under one of the two criteria identified below:

1. The personal property must have an economic life of one (1) year or less.

   This criterion applies to any personal property regardless of original acquisition cost. This category also includes non-functional personal property that is used as a source of parts for the repair of operational machinery and equipment.

2. The personal property has an economic life exceeding one year, but has an acquisition cost, inclusive of installation cost, sales tax, and freight expense to the point of use, of $350 or less.

   The $350 personal property threshold applies to the acquisition cost of the personal property as completely assembled for use in the business, not the personal property’s unassembled, individual component parts.

   For leased equipment having a “buyout” provision occurring during or at the end of a lease, the fair market value of the personal property, including installation, sales tax, and freight to the point of use, at the time the initial agreement is executed, is to be used as the acquisition cost for the purposes of the $350 threshold.

Processing Declarations

1. Date stamp declaration schedule.
2. Verify that the declaration schedule was timely filed.
   NOTE: If the schedule is filed after the deadline, it is necessary to staple the envelope showing the postmark to the declaration schedule.
3. Match declaration schedule with personal property file.
4. Review for address and/or ownership changes and for owner’s social security number or federal identification number.
5. Review the Personal Property Declaration Schedule. Determine if the form was properly completed and signed by the property owner or agent. The itemized list of personal property may be shown on the declaration schedule or furnished on an exhibit attached to the declaration schedule, § 39-5-108, C.R.S.
6. Review the file for audit notes or other documentation that should be referenced during processing.
7. Review the current personal property record and make necessary adjustments. Review and reconcile the asset listing and/or depreciation schedule. Check for other assets that may not be listed in the addition and deletion portion of the declaration schedule.
8. Check for leased equipment reported on the declaration schedule. This tracking can be done manually or electronically.
9. Enter property changes into the computer system.
10. File personal property record.

Physical Inspection of Real Property – Guidelines

A notice should be placed in a local newspaper stating that the assessor’s office is conducting property inspections in specified neighborhoods. The notice should also indicate that the appraiser will leave an informational door hanger to schedule an appointment if no one is home. Each assessor’s office should develop a property inspection form to assist appraisers as a check list for conducting efficient, thorough and uniform inspections.

Prior to Field Inspection

1. Contact the property owner and establish a time to inspect the property.
2. Pull and review the appraisal records and all the pertinent information (building permits, TD-1000, sales verification letters, agricultural classification questionnaires, etc.) that pertains to the property.
3. If the location of the property is unknown, obtain and reference an assessment map to identify the property location.
4. Make sure the following items are available and in working order:
   1. Camera and memory card
   2. Measuring tape
   3. Flashlight
   4. Calculator
   5. Protective wear (boots/old shoes, rain gear, etc.)
   6. County identification
   7. Paper and pencil
   8. Property inspection forms.
   9. Pertinent subject properties’ appraisal records

Field Inspection

1. Visually survey the neighborhood. Note neighborhood appearance, street traffic, location of street lights, amenities, existing obsolescence, etc.
   NOTE: If no one is home, leave an informational door hanger so the property owner can schedule an appointment for the inspection.
2. Visually survey the property site. Identify installed utilities, parcel size, parcel shape, parcel location within the block/surrounding area, excess land, topography, location of structures, drainage, evidence of agricultural use, etc.
3. Make a careful inspection of the interior finish, recording the details in the appropriate place on the property record card. Using a characteristic check sheet to inventory the interior can assist in capturing all pertinent data. Note the floor plan (basement or other floors), room counts, plumbing, fireplaces, type of heating, material quality, physical condition, functional obsolescence, general condition, necessary repairs, etc.
4. Inspect the exterior of the structure(s), including the rear of structure. Check all decks, garages, outbuildings, concrete slabs, etc. Make a note of the property condition, material quality, needed repairs, roof type, etc.
5. Verify the property classification. Compare the property with the base specifications in Chapter 6, Property Classification Guidelines and Assessment Percentages, to find the proper class and subclassification. Note any changes in property use.

6. Measure the structure(s). If the structure is newly constructed, measure the entire structure. Typically, the measurement should start with the side that has the least number of angles. The starting point should be clearly marked on the grid created by the appraiser. The measurements can be spot checked if the structure has been previously measured. Make note of bay windows, second stories which extend over the first story, etc. Make sure all measurements close before leaving the site.

   NOTE: If your county has a building department, you may want to review the plans of particularly difficult structures.

   The appraiser should make a scaled sketch of each level of the structure and show a calculation of square feet and/or cubic feet areas. When calculating square footages, areas that are not finished should be separately identified. The sketch should show the location of each structure in relation to others and in relation to the land parcel.

7. Take a photograph of the major structures. Take photographs of anything that may aid in the valuation of the property. Note the photo identification numbers on the field inspection sheet. As an alternative to a photograph, a video camcorder can be very effective in capturing the property and comparable properties.

For additional information on physical inspections, refer to:

• Chapter 8, Assessment Planning Guidelines.
• Course material from Appraisal 114, Design and Measurement Workshop, Division of Property Taxation.
• The Appraisal of Real Estate, American Institute of Real Estate Appraisers, 2008, Chapters 10 and 11.

Possessory Interests

Possessory Interest Definition

For purposes of the procedures, the Division of Property Taxation defines possessory interest as:

A private property interest in government-owned property or the right to the occupancy and use of any benefit in government-owned property that has been granted under lease, permit, license, concession, contract, or other agreement.

Generally, possessory interests constitute a right to the possession and use of government property for a period of time less than perpetuity. It represents a portion of the bundle of rights that would normally be included in a fee ownership; and its value, therefore, is typically something less than the value in perpetuity of the whole bundle of rights.

See ARL Volume 3, Real Property Valuation Manual, Chapter 7, Special Issues in Valuation, Assessment of Possessory Interest, for further information.

Tax Area Assignment

Possessory interest properties will be taxed by a minimum of the county and a school district. The inclusion of property in other taxing entities must be determined using county and taxing entity records, to the best of your ability.

School district boundary information is available from the school district and/or the Department of Education.

When assigning a tax area for possessory interests, it would be reasonable to use the location of the operation as the determinate factor for establishing the tax area or in the case of multiple counties, the county/tax area where the operation is based. However, all counties involved need to be in agreement with this assignment.

Apportionment of Possessory Interest Values in Land Between Two or More Counties

In most circumstances, possessory interests are located in a single county and no apportionment is necessary. However in some instances, use of land or other types of possessory interests operate in more than one county and thus require an apportionment of the actual value of the possessory interest to each county.

In the case of agricultural grazing possessory interests, the federal and state agencies have been able to provide the exact acreage of each allotment within each county.

In the case of river-rafting permits the launch site location is to be used in determining the county as well as the taxing district to assign to the account.

For guide and outfitter operations located in multiple counties it would be reasonable to assign the base-site of the operation as the location and the tax area.

Each county will send a tax bill for its apportioned share of the total value.

Minimum Values

The law does not provide for minimum assessments on real or personal property. What is allowed is the collection of a $5 administrative fee when a real property tax amount is less than $10, § 30-1-102(3), C.R.S.

Counties considering a minimum assessment should discuss the issue with the county attorney, as the county attorney defends the assessor’s actions if a taxpayer challenges the minimum value.

Property Description

The property description for a possessory interest will vary, depending on the information available and whether the lessor is the U.S. Forest Service, the State Land Board, etc. Based on the information available from each lessor, the assessor should establish a standard for possessory interest descriptions. Below are suggested items that might be included, if available, in the description:

• Principal meridian (if there is more than one survey area in the county)
• Section, township and range
• Lease/permit/authorization number
• Lessor
• Contract date (start-up)
• Expiration date
• Park name
• Acreage of parcel

Examples:

• Possessory interest in State Land Board land in section 36, township 11 north, range 52 west of the 6th Principal Meridian, containing 640 acres, per lease number 01123.
• Possessory interest in BLM land, authorization number 0505715, start-up 2/28/99, expiring 2/28/09.

Parcel Numbering

A parcel number may be assigned to a possessory interest property but because the possessory interest is tied to a permitted use and not necessarily to real property described by section, township, and range using a fourteen-digit parcel number may not be appropriate. Therefore, to create consistency, a county could consider using arbitrary schedule numbers to identify possessory interest properties.

Classification and the Abstract of Assessment

The abstract codes for possessory interests are listed in Chapter 6, Property Classification Guidelines and Assessment Percentages. The possessory interest values are listed by class for each city and town and school district in the abstract.

Collection of Taxes

The property tax on a possessory interest in real or personal property must be assessed to the holder of the possessory interest and collected in the same manner as other property taxes; except that the property tax on a possessory interest cannot become a lien against the real or personal property. When due, the property tax becomes a debt due from the holder of the possessory interest to the board of county commissioners or to such other body as is authorized by law to levy property taxes, and will be recoverable by the board or body by direct action in debt on behalf of each governmental entity for which a property tax levy has been made, § 39-1-107(4), C.R.S.

The debt action would be initiated by the treasurer and would involve the county commissioners and county attorney.

Predatory Animal Control

Colorado statutes provide for a predatory animal control program, implemented by the Department of Agriculture, for the protection of sheep, §§ 35-40-100.2 through 207, C.R.S. A local protection program may be implemented by the county commissioners through a county-wide license fee on sheep and/or cattle for local control of predatory animals. At present, no county uses this program for cattle.

The board of county commissioners has the power to establish a license fee to defray the expense of the predatory animal control program. By October 1 of each year, the Colorado Sheep and Wool Board must provide the assessor with a certified list containing all the information necessary to implement the program. The information consists of the name and address of each sheep owner in the county, the number of sheep that were marketed during the immediately preceding twelve months, § 35-40-205, C.R.S.

The assessor, after receiving the list of names and number of sheep, transmits the list to the board of county commissioners by November 1, § 35-40-205, C.R.S. The county commissioners then order (by resolution) that the county license fee be levied against all sheep herded or grazed in the county during the previous year, § 35-40-205, C.R.S.

The resolution becomes very important in the control and collection of delinquent county predatory animal sheep fees. It is the opinion of some county attorneys that without such a resolution, the collection of delinquent county sheep fees may not be enforceable.

Upon the order of the board of county commissioners, the assessor enters on the property tax roll the amount of the county sheep fees due from each sheep owner. This is a sheep license fee, not a property tax assessment. However, when levied, it becomes a lien upon the property of the sheep owner, enforceable under the personal property tax collection laws. When collected, the fees are credited by the county treasurer to the county predatory animal control fund, § 35-40-205(2), C.R.S.

Real Property Leased and Used by the State, a Political Subdivision, or a State-Supported Institution of Higher Education

Real property that is used by the state, a political subdivision, or a state-supported institution of higher education (qualifying entity) pursuant to the provisions of a lease or rental agreement for at least a one-year term is exempt from property taxation. State-supported institutions of higher education include, but are not limited to, all post-secondary institutions including junior colleges and community colleges, extension programs of the state-supported universities and colleges, local district colleges, area technical colleges, and the institutions governed by the regents of the University of Colorado. A political subdivision is defined in § 39-1-102(12), C.R.S., as any governmental entity that has the authority to levy a property tax. The exemption is not extended to leases where the federal government is the tenant.

The exemption applies to existing leases and new lease agreements entered into or renewed on or after January 1, 2009, § 39-3-124(1)(b), C.R.S. The discovery mechanism for the assessor’s office is the receipt of a copy of the lease (including subleases, as long as the space is used by a qualifying entity) from the lessee, § 39-3-124(1)(b)(I), C.R.S. The lessee is also required to notify the assessor’s office if the lease terminates before the stated term expires.

The value associated with the change in taxable status must be tracked and reflected on certifications of value to taxing entities.

Effective June 1, 2009, upon receipt of a lease or rental agreement, § 39-3-124(1)(b)(I)(B), C.R.S., requires that the assessor send a notice to the landlord acknowledging receipt of the lease or rental agreement. The notice must identify the property, the property address, and the parties to the lease or rental agreement. The assessor may provide notice of leases received prior to June 1, 2009, as a courtesy to taxpayers.

Procedures

1. Identify the property being leased and pull the property record.
2. Review the lease:
   1. Verify landlord is owner of record. If the ownership does not match, contact the lessee.
   2. Verify lessee is a qualifying entity.
   3. Determine the lease start and end dates. To qualify for exemption, the term must be for at least one year.
   4. Identify leased area. Lease renewal documents or amended leases must be reviewed to determine if the property described under the new lease was changed from the previous lease
3. Determine the value of the land and improvements that will be designated as taxable and exempt, based on the area described in the lease.
   1. If 100% of the property is leased, then 100% of the value will be exempt and prorated based on the start date of the lease.
   2. If only part of the property is leased to a qualified entity, the statute is silent on how the exempt value is to be determined. Therefore, it is at the discretion of the assessor to determine which method provides the most reliable indication of value. The most commonly used method is proration based on the actual square footage described in the lease. An alternative method is proration based on income.
4. Calculate the prorated exempt and taxable value for the land and improvement, based on the lease start date. See Property Changing Taxable Status, Chapter 4, Assessment Math for a calculation example and Chapter 9, Forms Standards for an example of the Special Notice of Valuation.

5. Assign a classification code to the exempt portion of the land and improvement and change the assessment roll records. The taxable portion of the land and improvement will retain the classification code assigned to the property as of January 1. It is not necessary to create separate schedule numbers for the exempt and taxable values; multiple class codes may be carried on a single property record.

   The recommended exempt classification codes for this type of exempt property are: Leased (Non Residential), 9195 (land), 9295 (improvements); Leased (Residential), 9196 (land), 9296 (improvements). Refer to Chapter 6, Property Classification and Assessment Percentages.

6. Set up three computer tracking flags:
   1. Track the lease expiration date.
   2. If the first year value is a prorated value, change the prorated exempt value to the full exempt value the following January 1.
   3. Certification of Values: For TABOR, track the actual value of real property changing from taxable to exempt as the result of a new lease, and track the actual value of real property changing from exempt to taxable when the lease expires. Track the full value of the property subject to the change.
7. When the lease terminates or if the lease ends early, prorate the value and issue a Special Notice of Valuation reflecting the change in status from exempt to taxable. Refer to Special Notices of Valuation in this chapter. Property Changing Taxable Status in Chapter 4, Assessment Math for proration procedures and Chapter 9, Form Standards, for procedures and a sample of the Special Notice of Valuation.

For statutory information, refer to Real Property Leased to the State or Political Subdivision in Chapter 10, Exemptions.

Senior Citizen, Veteran with a Disability and Gold Star Spouse Exemptions

In 2000, voters adopted section 3.5 of article X of the Colorado Constitution, creating a property tax exemption for qualifying senior citizens and their surviving spouses. A qualifying senior citizen is an individual who was at least 65 years of age on January 1 of the year of application and who owned and occupied the property as his or her primary residence for at least 10 consecutive years prior to January 1. Voters expanded the program in 2006 to include “qualifying veterans with a disability.” A “qualifying veteran with a disability” is an individual who sustained a service-connected disability rated by the Federal Department of Veterans Affairs as a 100 percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the Department, the United States Department of Homeland Security, or the Department of the Army, Navy, or Air Force. Effective January 1, 2015, the surviving spouse of a qualifying veteran with a disability may apply for the exemption on the primary residence that previously received an exemption, § 39-3-203(1.5)(a.5), C.R.S. In 2022, voters approved a ballot measure to extend the exemption to the surviving spouses of a “Gold Star Veteran” who died in the line of duty and veterans who died as a result of a service-related injury or disease.

For those who qualify, 50 percent of the first $200,000 in actual value of their primary residence is exempted for a maximum exemption amount of $100,000 in actual value. The state will pay the property tax on the exempted value.

The requirements for obtaining any of the exemptions are discussed under Eligibility below. The application forms and the required annual notice and brochure about the programs are covered in Chapter 9, Form Standards. This section discusses the administration of the exemptions and provides scenarios of properties that would or would not qualify. The application for Gold Star Spouses will be available in January of 2023.

Annual Notice

No later than May 1 each year, the assessor must send a notification and the instructions for obtaining proof of qualifying veteran with a disability status to all residential property owners explaining the existence of the exemption programs. Effective January 1, 2014, the notice for the senior exemption must be included with the treasurer’s tax bill in January. If the notice for the veteran with a disability exemption is not also included in the treasurer’s tax bill in January, the assessor must include it with the assessor’s Real Property Notice of Valuation in May, or send it as a separate mailing, § 39-3-204, C.R.S. Language for the notice is discussed in Chapter 9, Form Standards.

Eligibility for the Senior Citizen Exemption

Applicant as Qualifying Senior Citizen, § 39-3-203(1)(a)(I), C.R.S.

1. The applicant (qualifying senior citizen) must be at least 65 years old on January 1 of the year in which he/she applies; and
2. The applicant (qualifying senior citizen) must be the owner of record and must have been the owner of record for at least 10 consecutive years prior to January 1. Ownership can be limited to a fractional, joint, life estate interest, trust, a corporate partnership, or other legal entity solely for estate planning purposes; and
3. The applicant (qualifying senior citizen) must occupy the property as his/her primary residence, and must have done so for at least 10 consecutive years prior to January 1. A primary residence is the place at which a person’s habitation is fixed and to which that person, when absent, has the intention of returning. A person can have only one primary residence at any time.

Applicant as Surviving Spouse, § 39-3-203(1)(a)(II), C.R.S.

1. The applicant (surviving spouse) must have been legally married to a senior citizen who met the above requirements on January 1 of the year the senior citizen passed away; and
2. The spouse (qualifying senior citizen) passed away on or after January 1, 2002; and
3. The spouse (qualifying senior citizen) was at least 65 years old on January 1 of the year he/she passed away; and
4. The spouse (qualifying senior citizen) occupied the property as his/her primary residence on January 1 of the year he/she passed away and for at least 10 consecutive years prior to that date; and
5. The spouse (qualifying senior citizen) and/or applicant was the owner of record on January 1 of the year the spouse passed away, and for at least 10 consecutive years prior to that date. (During any time in which ownership was held by the applicant and not the spouse, the applicant also occupied the property as his/her primary residence); and
6. The applicant (surviving spouse) cannot have remarried; and
7. The applicant (surviving spouse) must occupy the residential real property as his/her primary residence and must have done so with his/her spouse (qualifying senior citizen). The applicant does not have to meet the 10-year occupancy requirement.

Eligibility for the Veteran with a Disability Exemption

Applicant as Qualifying Veteran with a Disability, §§ 39-3-202(3.5) and 39-3-203(1.5)(a), C.R.S.

1. The applicant must be a veteran who sustained a service-connected disability rated by the Federal Department of Veterans Affairs as a 100 percent permanent disability through disability retirement benefits pursuant to a law or regulation administered by the Department, the United States Department of Homeland Security, or the Department of the Army, Navy, or Air Force; and
2. The applicant must be an honorably discharged veteran; and
3. The applicant must be the owner of record and must have been the owner of record since January 1. Ownership can be limited to a fractional, joint, life estate interest, trust, a corporate partnership, or other legal entity solely for estate planning purposes; and
4. The applicant must occupy the property as his/her primary residence, and must have done so since January 1. A primary residence is the place at which a person’s habitation is fixed and to which that person, when absent, has the intention of returning. A person can have only one primary residence at any time.

Applicant as Surviving Spouse, § 39-3-203(1.5)(a.5), C.R.S.

1. The applicant must have been legally married to a veteran with a disability who met the above requirements on January 1 of the year the veteran with a disability with a disability passed away.
2. The spouse (qualifying veteran with a disability) must have been previously qualified as a veteran with a disability by the Division of Veteran’s Affairs and must have been previously receiving the property tax exemption on his/her residence.
3. The spouse (qualifying veteran with a disability) must have occupied the property as his/her primary residence on January 1 of the year he/she passed away.
4. The applicant (surviving spouse of qualifying veteran with a disability) cannot have remarried; and
5. The applicant (surviving spouse of qualifying veteran with a disability) must occupy the residential real property as his/her primary residence and must have done so with his/her spouse (the qualifying veteran with a disability).

Applicant as Gold Star Veteran Surviving Spouse, section 3.5 of article X of the Colorado Constitution

1. The applicant must have been legally married to a Gold Star Veteran who met the above requirements on January 1 of the year the veteran passed away.
2. The deceased spouse must have been a qualifying Gold Star Veteran
3. The spouse of the qualifying Gold Star Veteran must have occupied the property as his/her primary residence on January 1 of the year the veteran passed away.
4. The applicant (surviving spouse of qualifying Gold Star Veteran cannot have remarried; and
5. The applicant (surviving spouse of qualifying Gold Star Veteran) must occupy the residential real property as his/her primary residence and must have done so with his/her spouse (the qualifying Gold Star Veteran).

Exceptions to Ownership and Occupancy Requirements

If any of the ownership and occupancy requirements are not met due to one or more of the reasons listed below, the applicant can still qualify for the exemption. Applicants for the senior citizen exemption who fall under any of these exceptions must complete the Long Form.

1. Title to the property is held by the spouse of the qualifying senior citizen or veteran with a disability. During any time in which the ownership requirement is met by ownership in the spouse’s name, the spouse must occupy the property with the qualifying senior citizen or veteran with a disability as his/her primary residence, §§ 39-3-202(2)(a)(II)(A) and (B), C.R.S.
2. Title to the property was transferred to or purchased by a trust, “corporate partnership,” or other legal entity solely for estate planning purposes. The qualifying senior citizen, veteran with a disability, or spouse, is a maker of the trust or a principal of the “corporate partnership” or legal entity. Had the transfer not occurred, the qualifying senior citizen, veteran with a disability, or spouse, would be the owner of record. If the spouse would otherwise be the owner, the spouse must occupy the property as his or her primary residence, or must have done so when alive. If the property is owned by a trust, the trust must have been established by a written trust agreement, §§ 39-3-202(2)(a)(III), (IV), and (V), C.R.S.
3. The qualifying senior citizen, his/her spouse or surviving spouse, or the veteran with a disability or his/her spouse is/was confined to a hospital, nursing home, or assisted living facility. If not for confinement, the individual would meet the appropriate occupancy requirement. While confined to the health care facility, the property was occupied by the spouse of the person confined, a financial dependent, or it remained unoccupied, § 39-3-202(2)(b), C.R.S.
4. The qualifying senior citizen’s prior home was condemned in an eminent domain proceeding by a governmental entity, or it was sold to a governmental entity upon threat of condemnation by eminent domain. Had this not occurred, the qualifying senior citizen would meet the 10-year ownership and occupancy requirements on the prior residence. Since condemnation, the qualifying senior citizen has not owned and occupied other property as his/her primary residence other than the one for which exemption is sought, § 39-3-203(6)(a)(I), C.R.S.
5. The qualifying senior citizen’s prior home was destroyed or otherwise rendered uninhabitable by a natural disaster. Had this not occurred, the qualifying senior citizen would meet the 10-year ownership and occupancy requirements on the prior residence. Since the destruction by a natural disaster, the qualifying senior citizen has not owned and occupied other property as his/her primary residence other than the one for which exemption is sought, § 39-3-203(6)(a)(I)(1.5), C.R.S.

Limitations

1. The application for the senior citizen exemption must be filed by July 15 of the year for which the exemption is requested. The filing deadline for the veteran with a disability exemption is July 1. Filing will be considered timely if the application is postmarked no later than the application deadline, § 39-3-205(1), C.R.S. If the application is not filed by July 15, the assessor must accept late applications through August 15; however, applicants will not have appeal rights for applications filed after July 15, § 39-3-206(2)(a.7), C.R.S. The county assessor is authorized to waive the application deadline and accept an application for the veteran with a disability exemption if filed on or before August 1, if the applicant can show good cause for not filing by July 1, § 39-3-206(2)(a.7), C.R.S. Standards for determining “good cause” are discussed under Late Applications below.
2. All required fields on the application must be completed, or the application cannot be approved. This includes a requirement that the application list the social security number of each person who occupies the property, § 39-3-205(1), C.R.S. In rare instances, an occupant or applicant may be listed who does not have a social security number but receives benefits under the number of another person. For such individuals, the application might list the social security number of the other person, along with a letter suffix. However, according to the Social Security Administration, when an application is completed in this manner, the person in question generally does have a social security number, but has used the spouse’s number with a letter suffix for so long that he or she has forgotten about the existence of his or her own number. Therefore, when an application includes a social security number with a letter suffix, the person in question should be contacted and encouraged to verify the status of his or her own social security number. If the individual does so, but says that the Social Security Administration confirmed that he or she does not have a number, the application can be approved, and the number with the letter suffix should be used.
3. Under no circumstances will an exemption be allowed for any property taxes assessed prior to the year in which the qualified individual first files a timely exemption application, § 39-3-203(1)(b), C.R.S.
4. Once an exemption application is filed and approved, the exemption remains in effect for subsequent years, unless the home is sold or the qualifying applicant no longer uses the home as his/her primary residence, § 39-3-205(1), (2)(b) and (3)(b), C.R.S.
5. Statute requires that notice be given to the county assessor within 60 days of any change in the ownership or occupancy that would prevent an exemption from continuing, §§ 39-3-205(2)(b) and (3)(b), C.R.S. Once the property no longer qualifies for exemption, the exemption is removed the following January 1.
6. If a qualified individual owns a unit in a condominium, as defined in § 38-33.3-103(8), C.R.S., or owns multiple dwelling units in which the qualified individual occupies one of the units, an exemption will be allowed only with respect to the dwelling unit that the individual occupies as his/her primary residence, § 39-3-203(3), C.R.S.
7. No more than one exemption per property tax year will be allowed for a single dwelling unit of residential real property, regardless of how many qualified individuals use the home as their primary residence, or whether one or more owner-occupiers qualify for both the senior citizen and veteran with a disability exemptions, § 39-3-203(4), C.R.S.
8. Two individuals who are legally married and who own more than one residential real property, shall be deemed to occupy the same primary residence and may claim no more than one exemption, § 39-3-203(5), C.R.S.
9. An owner occupier who claims an exemption on a property that he or she has not actually owned and occupied as his or per primary residence for the ten years preceding the assessment date shall provide the assessor any information the assessor may reasonably require to verify the owner-occupier is entitled to an exemption, § 39-3-203(6)(b), C.R.S.

Required Forms

Application forms and a brochure have been created for the exemptions. The documents are available at the following website, or by calling the Division at (303) 864-7777.

Forms Index

Making Application

Senior Citizen Exemption

Senior citizens must file a completed application with the assessor no later than July 15 of the year for which they are first seeking exemption. The application is considered timely filed if postmarked by July 15, § 39-3-205(1)(a), C.R.S. This is a confidential document. The assessor must accept late applications until August 15. See Late Applications below.

Veteran with a Disability Exemption

Pursuant to § 39-3-205, C.R.S., veterans with a disability must file a completed application with their county assessor no later than July 1 of the year for which they are first seeking exemption. The application is considered timely filed if postmarked by July 1, § 39-3-205(1)(b), C.R.S. This is a confidential document. Late applications may be accepted until August 1 if the applicant can show good cause for missing the July 1 deadline. See Late Applications.

Application forms can be obtained from the web site of the Colorado Division of Property Taxation forms.

Surviving spouses of a previously qualified veteran with a disability may apply for a continuation of the exemption by submitting a Veteran with a Disability Surviving Spouse application form to the county assessor's office no later than July 1.

Approval or Denial of Application

Senior Citizen Exemption

The assessor approves or denies all applications for the senior citizen exemption. The application period begins on January 1 and ends on July 15 (August 15 for late applications) of each year. Assessors should not provide new applications to taxpayers or accept completed exemption applications outside of this period, § 39-3-206(2)(a.5), C.R.S.

The legal requirements for exemption are discussed under Eligibility for the Senior Citizen Exemption. Example scenarios are provided later in this section. It is recommended that the assessor begin the review process as soon as possible so that applicants who file incomplete applications, or who need to submit additional documentation, have sufficient time to provide what is needed within the time frame allowed.

If one or more of the requirements for exemption are not met, or if the application is incomplete, the assessor mails a letter by August 1 explaining the reason(s) for denial. The letter must describe the procedure for appealing the denial, § 39-3-206(1)(b), C.R.S.

Under no circumstances shall an exemption be allowed for property taxes assessed during any tax year prior to the year in which the senior citizen first files an exemption application § 39-3-203(1)(b), C.R.S.

Because the exemption is not a “state or local public benefit” as defined in § 24-76.5-102(3), C.R.S., the assessor need not verify that the applicant is lawfully present in the United States.

Veteran with a Disability Exemption

Pursuant to § 39-3-205, eligible veterans with a disability will apply to their county assessor’s office. The Colorado Department of Military and Veterans' Affairs will create a set of guidelines that the county assessor will use to determine eligibility based on the veteran's application and their proof of qualifying veteran with a disability status.

If one or more of the requirements are not met, or if the application is incomplete, the assessor mails a letter no later than August 1 explaining the reason(s) for denial. The letter must describe the procedure for appealing the assessor’s denial, § 39-3-206(1.5)(b), C.R.S. Under no circumstances shall an exemption be allowed for property taxes assessed during any tax year prior to the year in which the veteran first files an exemption application.

Only One Exemption Allowed

No more than one exemption per tax year shall be allowed for a residential property, even if one or more of the owner-occupiers qualify for both the senior citizen exemption and the veteran with a disability exemption. If an individual or married couple applies for either or both the senior citizen and veteran with a disability exemptions on more than one property, the exemptions shall be denied on each property §§ 39-3-203(4) and 39-3-207(2)(a)(I), C.R.S.

Additional Procedures

Prior to August 1, the clerk and recorder publishes notice in at least one issue of a county newspaper of the dates the county board of equalization will hear appeals of denied exemptions, § 39-8-104(2)(b), C.R.S. The notice should appear in at least one issue of a local newspaper, or if no local newspaper exists, the notice should be posted in the offices of the assessor, the treasurer, the clerk and recorder, and in at least two other public places located in the county seat, § 39-8-104(3), C.R.S.

Timely applications should be processed and entered into the assessor’s CAMA system no later than August 1. Late applications should be processed and entered no later than September 1.

No later than August 15, a taxpayer may contest the assessor’s denial by requesting a hearing before the county board of equalization, § 39-3-206(2)(a), C.R.S.

From August 1 through September 1, the county board of equalization hears appeals from applicants denied exemption, § 39-3-206(2), C.R.S. The assessor should be present to explain the reasoning for the decisions.

No later than September 10, the assessor completes all application processing for the year and then submits a report to the Administrator that includes a list of the properties granted either exemption, § 39-3-207(1), C.R.S. Data required for the report is discussed later in this section.

NOTE: Exemptions added by the county after September 10 are not eligible for reimbursement by the state if they were not included in the assessor’s first (September 10) report to the Administrator.

The Administrator reviews the reports of all assessors to identify applicants who submitted an exemption application without meeting all legal requirements for claiming the exemption. No later than November 1, the Administrator notifies applicants who:

1. claimed an exemption to which they are not entitled.
2. are a married couple and claimed separate exemptions.
3. do not own and/or occupy the property as their primary residence.
4. are otherwise ineligible to claim an exemption.

The notification to the applicant shall include reasons for the determination of ineligibility. The denial notice includes instructions for appealing the denial to the Administrator, § 39-3-207(2)(a)(I), C.R.S.

Taxpayers denied exemption by the Administrator can appeal no later than November 15. When appealed, the Administrator requests from the appropriate assessors a copy of each exemption application submitted by the applicant. The appeal is decided accordingly. If the applications remain denied, the Administrator mails a denial letter and a copy of each application filed by the applicant, § 39-3-207(2)(a)(II), C.R.S.

No later than December 1, the Administrator sends written notice to each affected assessor of the properties which were denied by the Administrator because the applicants have claimed exemption without meeting legal requirements for doing so, § 39-3-207(2)(b), C.R.S. The assessor removes these exemptions prior to delivery of the tax warrant.

No later than January 24, each assessor shall forward to the Administrator a partial copy of their county tax warrant that includes only properties granted an exemption. The Administrator will examine the tax warrant to ensure that no additional exemptions have been allowed since the Administrator examined the assessors’ first reports, which were previously sent to the Administrator no later than September 10 as described above, and that all exemptions denied by the Administrator have been removed. The Administrator will notify assessor and treasurer of any exemptions to be removed from the tax warrant no later than January 31. See Assessor and Treasurer Reports below for the specific procedure and data required for this report.

It is recommended that the treasurer’s tax bills include both the amount of taxes owed and the amount of taxes exempted.

No later than March 1, the treasurer submits a report to the Administrator, who will cross-check reports to identify any exemption allowed that must be denied. The Administrator will remove the exemption from the report, notify the county treasurer and the county assessor of any change, and forward all reports to the state treasurer no later than April 1, §§ 39-3-207(3) and (3.5), C.R.S. See Assessor and Treasurer Reports below for the specific procedure and data required for this report.

No later than April 15, the state treasurer issues a warrant to each county treasurer in an amount to fully reimburse local governments for the lost revenue, § 39-3-207(4)(a), C.R.S.

If a change in the ownership or occupancy occurs to a property that was granted an exemption, the applicant or trustee must notify the assessor within 60 days of the occurrence of the change, § 39-3-205(3)(b), C.R.S.

Completed exemption applications shall be kept confidential, and lists of individuals who applied for either exemption shall not be provided to the public, §§ 39-3-205(4)(a) and (b), C.R.S. Exemption applications shall be destroyed according to a policy established in conformance with § 6-1-713, C.R.S. Retention and destruction of senior citizen and veteran with a disability exemption applications is discussed in Chapter 1, Assessor’s Duties and Relationships, Addendum 1-C, Records Retention.

Revocations

When the assessor determines that a property no longer qualifies for either exemption, the exemption is revoked effective the following January 1, § 39-3-203(2), C.R.S. A revocation can result from a change in ownership or occupancy or from the death of the applicant or the applicant’s spouse. The Division recommends that a revocation notice be sent to the owner of record soon after January 1.

When a change in status occurs, the exemption can sometimes be maintained if additional information is provided on a new application. For instance, upon the applicant’s death, the spouse of a senior citizen might qualify as either a surviving spouse or as a qualifying senior citizen. If ownership transferred to the applicant’s spouse, or to a company, corporation, or trust, the applicant or spouse might qualify if certain conditions are met. If the applicant no longer occupies the property, the spouse might qualify, or the applicant might continue to qualify while living in a nursing home or assisted living facility. See Eligibility above.

Statute does not outline a procedure for appealing revocations. Therefore, the Division recommends that the revocation notice include the following items:

• A statement explaining why the exemption was revoked.
• A new Senior Citizen Exemption Long Form application, Veteran with a Disability Exemption application, or Surviving Spouse of Veteran with a Disability Application.
• A statement explaining that the exemption might qualify for reinstatement upon submission of a new application. The statement should refer the reader to the qualifications stated in the application instructions.
• A statement explaining that in order to continue the exemption in the current year, or to appeal a revocation/denial, a new application must be mailed or delivered no later than July 15 for the senior citizen exemption or July 1 for the veteran with a disability exemption and exemption for the surviving spouse of a veteran with a disability.

When appropriate, the applicant or trustee of a property for which a senior citizen or veteran with a disability exemption is approved or is pending must notify the assessor within 60 days of the occurrence of a change in ownership or occupancy that would result in the loss of exemption, § 39-3-205(3)(b), C.R.S.

Assessor and Treasurer Reports

As described above, each year the assessor is required to send a report to the Property Tax Administrator no later than September 10, listing all of the properties currently granted the senior citizen exemption or the veteran with a disability exemption. The assessor is also required to forward a partial copy of the tax warrant to the Administrator by January 24. This second report to the Administrator must include only property for which the assessor has granted an exemption. The county treasurer is also required to submit a report on the exemptions allowed in his or her county to the Administrator no later than March 1 of each year. All three of these reports shall be in the same format. The required data items and the report file formats are discussed below.

Assessor’s First Report to Division of Property Taxation

The assessor’s September 10 report to the Administrator must contain the following information, § 39-3-207(1), C.R.S. This report should be completed and submitted as soon as possible after all exemptions have been processed and entered into the county’s CAMA system, but in any case no later than September 10.

• The countywide total actual value of residential property exempted from the tax roll
• The legal description of each property receiving exemption
• The schedule or parcel number of each property receiving exemption
• The name and social security number of the applicant for each property receiving exemption. The applicant is not necessarily the owner of record. The applicant is the individual identified as the qualifying senior citizen, surviving spouse, or qualifying veteran with a disability.
• The name and social security number of each person occupying each property receiving exemption (this includes children) 
• A statement of the taxable and tax-exempt actual value of each property
• Applications submitted on or before August 15 for the senior citizen exemption, under § 39-3-206(2)(a.5), C.R.S., must be included in this report.
• Applications submitted on or before August 1 for the veteran with a disability exemption, and accepted under § 39-3-206(2)(a.7), C.R.S., must be included in this report.
• Separate identification of the properties granted the veteran with a disability exemption from those granted the senior citizen exemption and the total amount of actual value exempted under each program.
  NOTE: Contact the Division of Property Taxation for instructions on submitting this report. Do not submit the files by email.

Assessor’s Second Report to Division of Property Taxation

No later than January 24, each assessor shall forward to the Administrator a partial copy of the tax warrant for the assessor’s county that includes only property for which the assessor has granted an exemption, § 39-3-207(2)(b), C.R.S. The assessor must provide this second (January 24) report in the same form and include the same content as the first (September 10) report described above. Please see File Format for Reports below for instructions on providing this information to the Administrator.

This report should be completed as soon as possible in December after the assessor has made the changes, if any, required by the Administrator as a result of the Administrator’s annual review of exemption data, but in any case no later than January 24.

County Treasurer’s Report to Administrator

The county treasurer’s March 1 report to the Administrator must contain the following information, § 39-3-207(3), C.R.S.

• The county-wide total actual value of residential property exempted from the tax roll
• The total amount of property tax revenue lost by all governmental entities in the county as a result of the exemption
• The legal description of each property receiving exemption
• The schedule or parcel number of each property receiving exemption
• The name and social security number of the applicant for each property receiving exemption. The applicant is not necessarily the owner of record. The applicant is the individual identified as the qualifying senior citizen, surviving spouse, or qualifying veteran with a disability.
• The name and social security number of each person occupying each property receiving exemption (this includes children).
• A statement of the taxable and tax-exempt actual value of each property
• Separate identification of the properties granted the veterans with a disability exemption from those granted the senior citizen exemption and the total amount of actual value exempted under each program.
• The county treasurer submits a cover letter with the March 1 report that details the number of schedules granted exemption, the total actual value exempted, and total taxes exempted.

NOTE: See File Format for Reports below for instructions on providing this information to the Administrator. Do not submit the files by email.

File Format for Reports

The Senior Citizen and Veteran with a Disability Exemption data interchange is composed of three files with fixed-length records, County Total, Property, and Occupant. The County Total file contains one record per county consisting of the total exempt actual value and the total taxes exempted. The Property file contains the data related to each parcel or schedule number for which an exemption has been requested. The Occupant file contains the corresponding occupants for each Property. In other words, there must be at least one, and there may be several, Occupant records for each Property record. There is therefore, a one-to-many relationship between these latter two files. The County Name and Property Number fields relate records in the two files.

During the application review process, it may be necessary to pay close attention to certain fields of data within the assessor’s database to ensure that information can later be correctly displayed on the reports. For instance, the “Legal Description” field in the Property file is 80 characters long, but many offices store the legal description on multiple lines that are shorter. In such instances, the office can populate the field either by concatenating multiple lines or by including only the first line. However, if only the first line of the legal is used, it is necessary to ensure that the first line is meaningful on its own. This should be done during the application process, and records for which the first line of the legal is not sufficient should be identified so that the legal descriptions can later be manually typed into the report.

WARNING: All data must be as stated in report instructions below. Incorrect or incomplete data may result in the loss of revenue reimbursement to the county.

The County Total file layout (68-byte records) is as follows:

The Property file layout (588-byte records) is as follows:

 * Total Actual Value is the sum of Taxable_Actual_Value and Exempt_Actual_Value for each property.

The Occupant file layout (131-byte records) is as follows:

Late Applications

Late Applications for the Senior Citizen Exemption

Applications received/postmarked on or prior to July 15 are considered timely filed, § 39-3-206(2)(a.5), C.R.S. Applications received/postmarked after July 15 but on or before August 15 are considered “late” applications.

The assessor must accept a late application if it is filed on or before August 15. 

Within 20 days of receiving the late application, the assessor notifies the taxpayer that the application was either approved or denied. If denied, the notice should state the reason for denial and should also include a statement that the assessor’s decision is final and not subject to appeal.

Late Applications for the Veteran with a Disability Exemption

The county assessor is authorized by § 39-3-206(2)(a.7), C.R.S., to accept a late application filed no later than August 1 if, the applicant shows good cause for not filing a timely application. Any late applications for exemption are reviewed by the assessor to determine if they shall be accepted and processed. 

Changes Made After September 10

An error may be discovered after September 10 that results in the taxpayer being entitled to a greater or smaller exemption amount than what was reported to the Administrator. The tax amount due must be corrected or a refund issued to ensure that the taxpayer receives no more or less than the benefit to which he or she is entitled.

Colorado law requires the Administrator to examine reports sent by each assessor to ensure that no applicant has claimed an exemption without meeting all legal requirements for claiming the exemption, § 39-3-207, C.R.S. The assessor’s first report to the Administrator for this purpose is due no later than September 10 of each year. Therefore, to ensure that all exemption applications are included in the required annual review, ALL APPLICATIONS SHALL BE PROCESSED BY THE ASSESSOR NO LATER THAN SEPTEMBER 10. Changes made after September 10 may result in properties being exempted that are not eligible for reimbursement by the state.

Changes Resulting from an Abatement Petition

A correction to a senior citizen or veteran with a disability exemption should not be handled with an abatement petition. However, an abatement petition approved for a different reason on a property granted either of the exemptions will result in a reduced exemption amount when the revised total actual value is below $200,000. When this occurs, the exempted value and revenue must be recalculated, and the abated or refunded taxes must reflect the reduced exemption amount.

If the abatement petition is approved prior to the delivery of the county treasurer’s report to the Administrator for the tax year abated, the reduced exemption amount must be included in the report to the state treasurer. The change should be made in accordance with steps one through four listed above. If the abatement is approved after the March 1 report for the applicable tax year has been delivered, the county treasurer should contact the state treasurer’s office for procedures for returning the excess state revenue. The state treasurer has indicated that the excess reimbursement money must be returned to the state.

Exemptions on Properties With Prorated Values

When a residence is destroyed or when it is reclassified as exempt property, its value is prorated based on the date of the change. If such a property has been granted the senior citizen or veteran with a disability exemption, the amount of the exemption is based on the prorated taxable value. Otherwise, the value exempted under either program would often be larger than 50 percent of the first $200,000 of the remaining taxable value, a situation prohibited by §§ 39-3-203(1) and (1.5), C.R.S., and section 3.5 of article X of the Colorado Constitution.

Example – Residence destroyed by fire

A single family residence was destroyed by fire on March 12 of the current year so that the improvement is subject to taxation for 70 days of the year. The value subject to the exemption is calculated as follows:

Actual value prior to destruction:

Prorated actual value of improvement:

$300,000 (Improvement value) ÷ 365 (Number of days in year) = $821.92 per day

$821.92 (Per day value) × 70 (Days) = $57,534 (Prorated taxable improvement value)

Total actual value of property after proration:

Exemption amount (50% of first $200,000):

$107,534 (Total actual value after proration) × 50% (Exemption percentage) = $53,767 

Qualification Scenarios

Assessors may encounter unusual circumstances not specifically addressed in the qualification provisions in statute. A few examples of situations that assessors may encounter are described below. Questions about these and other unusual situations should be addressed to Division staff.

Residence on Agricultural Land

A senior citizen meets the ownership and occupancy requirements for a residence located on agricultural land. Do the improvement and the land qualify? The house qualifies but the land qualifies only if it is classified as residential land because it is not integral to the agricultural operation; otherwise the land does not qualify. The land must receive the residential assessment rate to qualify.

Adjoining Parcel Receiving Residential Rate

A senior citizen who owns a single family residence that qualifies for the exemption also owns an adjoining lot that is listed by the assessor as a separate parcel. The adjoining lot is used in conjunction with the residence and receives the residential assessment rate. Does the adjoining lot qualify? The adjoining lot qualifies if it has been owned by the senior citizen and used in conjunction with the residence for 10 years prior to January 1. However, the total exemption for both parcels is limited to 50 percent of the first $200,000 in actual value combined.

Destroyed Residence

A senior citizen, whose property is destroyed by fire or a natural occurrence, builds a new house on the same property. Does it qualify? Yes.

Destroyed Residence by Natural Disaster

The primary residence of a senior citizen that did/would have qualified for the senior exemption was destroyed by a natural disaster; the senior moved to another location and applies for the exemption. Can the senior become qualified on a residence located in a different location? Yes, under § 39-3-203(6)(a)(I.5), C.R.S., the exemption may be approved on another residence when the senior’s primary residence was destroyed by a natural disaster.

Spouse Who is Owner of Record Dies

From 1994 to 2005 a senior citizen occupied a property with his wife as his primary residence. His wife, who was the owner of record, passed away in 2005. The senior citizen continued to occupy the property, and received title through probate in 2007. He still owns the property today, and it remains his primary residence. Does he qualify? Yes. The senior citizen clearly meets the age and occupancy requirements. The question is whether the 10-year ownership requirement was broken by the death of his spouse, due to the fact that when a spouse is the owner of record, the spouse must also occupy the property as his or her primary residence, §§ 39-3-202(2)(a)(II)(A) and (B), C.R.S. The senior citizen meets the ownership requirement because the intent of the provision requiring occupancy by the spouse is to ensure that the spouse does not occupy a different residence. In this case, the spouse did not occupy a different residence while she was the owner of record.

Senior Citizen Primary Residence Property Tax Reduction, § 39-1-104.6 C.R.S

For tax years 2025 and 2026, Senate Bill 24-111 creates a new residential real property subclass:, qualified-senior primary residence real property. Eligible applicants that apply for and receive this classification will receive a reduction in the actual value of their property. The reduction is different for each year of the program and modified from the initial bill language by Senate Bill 24-233. This new classification will offer the following valuation
reductions and assessment rates for qualified-senior primary residence residential real property:
 

• For property tax year 2025, mill levies from a local governmental entity that is not a school district will receive a 6.4% assessment rate with an actual value reduction of 10% of the actual value (up to $70,000), then a reduction of 50% of the first $200,000 of the remaining actual value.
• For property tax year 2025, mill levies imposed by a school district will receive a 7.15% assessment rate with an actual value reduction of 50% of the first $200,000 of the actual value.
• For property tax year 2026, mill levies from a local governmental entity that is not a school district will receive a 6.95% assessment rate with an actual value reduction of 10% of the actual value (up to $70,000) then a reduction of 50% of the first $200,000 of the remaining actual.
• For property tax year 2026, mill levies imposed by a school district will receive a 7.15% assessment rate with an actual value reduction of 50% of the first $200,000 of the actual value.

In either year of the program, the actual value reductions cannot lower the assessed value of the property below an assessed value of $1000. The order of how the adjustments are applied is important. The actual value adjustments that are equal to 10% of the actual value up to $70,000 must be applied before the “50% of first $200,000 of actual value” discount is applied. Any other adjustments to the actual value should also be applied before the 50% of the first $200,000 reduction.

Please be aware of the following when discussing this program with taxpayers and interested parties:
 

• This is not a portable version of the senior property tax exemption. Instead, it is a temporary classification that offers a reduction in property taxation that is similar to the existing property tax exemption for seniors. 
• Currently this program is only authorized for 2025 and 2026. Starting in 2027, unless the legislature extends the program, taxpayers will no longer be able to receive this reduction.
• If a taxpayer meets the eligibility requirements for the senior property tax exemption program during or after the year(s) they receive the senior citizen primary residence property tax reduction, they will have to apply for the senior exemption and go through the same application process as any other applicant to the senior exemption program.

Eligibility Requirements For The Senior Citizen Primary Residence Property Tax Reduction

The following eligibility requirements must be met by any applicant seeking the classification for either the 2025 or the 2026 tax years.

• The applicant must meet the requirements for “owner-occupier” status. Please see the “owner-occupier” section below for details.
• The owner occupier completes and files an application as required under § 39-1-104.6(2)(I), C.R.S.
• The applicant must have been eligible for, and received, the senior property tax exemption under § 39-3-203(1), C.R.S., for tax year 2020 or later § 39-1-104.6 (2)(II), C.R.S.

Owner-Occupier Status for the Senior Citizen Primary Residence Property Tax Reduction

In order to qualify for this program, the individual applicant must be an “owner-occupier” as described in SB24-111. The possible ownership and occupancy requirements that constitute “owner-occupier” status are listed below and can be found under §§ 39-1-104.6 (b)(I)(A) through 39-1-104.6 (b)(I)(E), C.R.S.

• The individual is the owner, or one of the owners, of record and resides at the home as their primary residence.
• The individual is not the owner of record, but is the spouse or civil union partner of the owner of record and occupies the home as their primary residence with the spouse or partner who is the owner of record.
• The individual is not the owner of record but is the surviving spouse or civil union partner of the owner of record, and they lived with the owner of record until their death and have not remarried.
• The individual is not the owner of record of the property they use as their primary residence because the property is owned by an estate planning trust or LLC. If this is the case the applicant must be the maker of the trust or principle of the LLC.
• The individual is not the owner of record of the property because the property is owned by an estate planning trust or LLC, but they use the property as their primary residence and occupy the property with their spouse or civil union partner who is the maker of the trust or principle of the LLC.
• An individual who occupies residential real property as the individual's primary residence and is the surviving spouse or civil union partner of a person who occupied the residential real property with the surviving spouse or partner until the person's death, who was not the owner of record of the property at the time of the person's death only because the property had been purchased by or transferred to a trust, a
  corporate partnership, or any other legal entity solely for estate planning purposes prior to the person's death, and who was the maker of the trust or a principal of the corporate partnership or other legal entity prior to the person's death.
• The individual, their spouse, or their civil union partner, who is the owner of record is confined to a hospital, nursing home, or assisted living facility. If not for confinement, the individual, the spouse, or the civil union partner, who is the owner of record would meet the appropriate occupancy requirement. While confined to the health care facility, the property is/was occupied by the spouse or their civil union
  partner of the person confined, a financial dependent, or it has remained unoccupied.
   

Program Limitations and Deadlines

• The application for the program must be filed by March 15 of the year for which the classification is requested. Filing will be considered timely if the application is postmarked no later than the application deadline. If the application is not filed by March 15, the assessor must accept late applications through July 15; however, applicants will not have appeal rights for applications filed after March 15. § 39-1-104.6(7)(b)(II), C.R.S.
• All required fields on the application must be complete, or the application cannot be approved. This includes a requirement that the application list the social security numbers of the applicant and their spouse or civil union partner, if applicable, § 39-1-104.6(b)(I)(A) and (C), C.R.S.
• Under no circumstances will the classification be allowed for any property taxes assessed prior to the year in which the qualified individual first files an application, §39-1-104.6 (2)(III)(b), C.R.S.
• Once an application is filed and approved, the classification remains in effect for subsequent years, as long as the circumstances that qualify the property have not changed since the initial filing of the application, If ownership of the property changes after the assessment date, then owner-occupier must reapply within program deadlines in order for the property to continue receiving the classification, § 39-1-104.6 (2)(III)(b), C.R.S.
• If a qualified individual owns and occupies a unit in a common interest community, as defined in § 38-33.3-103(8), C.R.S., or owns multiple dwelling units in which the qualified individual occupies one of the units, the classification will be allowed only with respect to the dwelling unit that the individual occupies as his/her primary residence, § 39-1-104.6 (2)(III)(c), C.R.S.
• Two individuals who are legally married or civil union partners who own more than one residential real property, shall be deemed to occupy the same primary residence and may claim no more than one qualified senior primary residence classification, §39-1-104.6 (2)(III)(d), C.R.S.

Annual Notice Page

As soon as possible after January 1 of each year the program is authorized, the county treasurer must send a notification, developed by the Division of Property Taxation, to owners of residential real property that explains program eligibility requirements as well as instructions on how to obtain an application, § 39-1-104.6 (6)(a), C.R.S.

Language for the notice will be available before the start of the 2025 tax year at the following website, or by calling the Division at (303) 864-7777. https://dpt.colorado.gov/forms-index

Application Process and Review

Qualifying owner-occupiers must file a completed application with the assessor’s office. The assessor’s office will review applications to determine if the owner-occupier is eligible to receive the classification.

• The application period is from January 1 to July 15. The application is considered timely filed if postmarked by March 15. The assessor must accept late applications until July 15. Applicants who file after the timely March 15 deadline are not able to appeal the assessor’s decision, § 39-1-104.6 (7)(II), C.R.S. Assessors should not provide new applications to taxpayers or accept completed applications outside of the
  application period.
• It is recommended that the assessor begin the review process as soon as possible so that applicants who file incomplete applications, or who need to submit additional documentation, have sufficient time to provide what is needed within the time frame allowed.
• If one or more of the requirements for the program are not met, if the application is incomplete, or if the there is insufficient information to allow the assessor to determine if the classification is allowed, the assessor shall mail a denial letter by August 1 explaining the reason(s) for denial. The letter must describe the procedure for appealing the denial, § 39-1-104.6 (7)(II), C.R.S. Because the program is not a “state or local public benefit” as defined in § 24-76.5-102(3), C.R.S., the assessor need not verify that the applicant is lawfully present in the United States.
• Prior to August 1, the clerk and recorder publishes notice in at least one issue of a county newspaper of the dates the county board of equalization will hear appeals of denied applications, § 39-8-104(2)(b), C.R.S. The notice should appear in at least one issue of a local newspaper, or if no local newspaper exists, the notice should be posted in the offices of the assessor, the treasurer, the clerk and recorder, and in at least two other public places located in the county seat, § 39-8-104(3), C.R.S.
• No later than August 15, a taxpayer may contest the assessor’s denial by requesting a hearing before the county board of equalization. From August 1 through September 1, the county board of equalization hears appeals from applicants denied the classification. The assessor should be present to explain the reasoning for the decisions, § 39-1-104.6 (7)(b)(I), C.R.S.

Reports to the Administrator

This program requires that counties report to the Administrator three times for each tax year. This includes two reporting deadlines for the assessor’s office of September 10 and the following January 10. Then the county treasurer must file a final report for the tax year on or
before March 1.

Colorado law requires the Administrator to examine reports sent by each county to ensure that no applicant has claimed the classification without meeting all legal requirements for the program. The assessor’s first report to the Administrator for this purpose is due no later than September 10 of each year. In order to ensure that all applicants are included in the required annual review, all applications must be processed by the assessor no later than September 10. Changes made after September 10 may result in classifications and value reductions that are
not eligible for reimbursement by the state.

All reporting for this program will be accepted via a new application within the Division’s “County Portal” website. Reports should never be sent via email in order to protect confidential information. The reports will have similar file formats and require similar data to the existing senior and veteran exemption program. The specifics of the required format will be disseminated to county offices as soon as practicable after the Office of Information
Technology completes the new application.

• No later than September 10, the assessor completes all application processing for the year and then submits a report to the Administrator that includes a list of the properties granted the classification, § 39-1-104.6 (8)(a), C.R.S.
• The Administrator reviews the reports of all assessors to identify applicants who submitted an application without meeting all legal requirements for the program § 39-1-104.6 (8)(b)(I), C.R.S.
• No later than November 1, the Administrator notifies applicants who are ineligible to claim the classification. The notification to the applicant shall include reasons for the determination of ineligibility. The denial notice includes instructions for appealing the denial to the Administrator, § 39-1-104.6 (8)(V)(b)(I), C.R.S.
• Taxpayers denied the classification by the Administrator can appeal no later than November 15, § 39-1-104.6 (8)(V)(b)(II), C.R.S.
• No later than December 1, the Administrator sends written notice to each affected assessor of the properties which were denied by the Administrator because the applicants have claimed the classification without meeting legal requirements for doing so, § 39-1-104.6 (8)(V)(c), C.R.S. The assessor reclassifies the ineligible properties prior to delivery of the tax warrant.
• No later than January 10, each assessor shall forward to the Administrator a partial copy of their county tax warrant that includes only properties granted the classification. The Administrator will examine this partial tax warrant to ensure that no additional properties have been allowed since the Administrator examined the assessors’ first reports, which were previously sent to the Administrator no later than
  September 10 as described above, and that all properties denied by the Administrator have been removed. The Administrator will notify the assessor and treasurer of any classifications to be removed from the tax warrant no later than January 17, § 39-1-104.6 (8)(V)(II)(d), C.R.S.
• No later than March 1, the treasurer submits a report to the Administrator, who will crosscheck reports to identify any classification allowed that must be denied. The Administrator will remove the property from the report, notify the county treasurer and the county assessor of any change, and forward all reports to the state treasurer no later than April 1, § 39-1-104.6 (9)(E)(b), C.R.S.
• No later than April 15, the state treasurer issues a warrant to each county treasurer in an amount to fully reimburse local governments for the lost revenue, § 39-1-104.6(9)(E)(c)(I)(A), C.R.S.

REVOCATIONS

If a change in the ownership or occupancy occurs to a property that was granted the classification, the applicant or trustee must notify the assessor within 60 days of the change, § 39-1-104(4)(III)(b), C.R.S. When the assessor determines that a property no longer qualifies because of a change in ownership or occupancy, the classification is revoked, § 39-1-104.6 (2)(III)(b), C.R.S. The Division recommends that a revocation notice be sent to the
owner of record upon discovery that they are no longer eligible.
 

When a change in status occurs, the classification can be maintained if additional information is provided on a new application. For example, upon the applicant’s death, the surviving spouse or civil union partner may qualify for the program. If ownership is transferred to the applicant’s spouse, civil union partner, or to a company, corporation, or trust, they might qualify. If the applicant no longer occupies the property, the spouse or civil union partner might qualify, or the applicant might continue to qualify while living in a nursing home or assisted living facility. See “Owner-Occupier Status” above.

Colorado statute does not outline a procedure for appealing revocations. Therefore, the Division recommends that the revocation notice include the following items:

• A statement explaining why the classification was revoked.
• A new application and instruction sheet for the program.
• A statement explaining that the classification of the property may qualify for reinstatement upon submission of a new application, if the qualification criteria stated in the application instructions are met.
• A statement explaining that to continue the classification in the current year, or to appeal a revocation, a new application must be mailed or delivered no later than March 15, for a timely filing with full appeal rights, or July 15, for late applications with no appeal rights.

UNIQUE SITUATIONS

Assessors may encounter unusual circumstances not specifically addressed in the qualification provisions in statute. Examples of situations assessors may encounter are described below. Contact the Division with any questions about these or other unusual situations.

Adjoining Parcel Receiving Residential Rate

An owner-occupier who owns a single-family residence that qualifies for the classification also owns an adjoining lot that is listed by the assessor as a separate parcel. The adjoining lot is used in conjunction with the residence and receives the residential assessment rate. Does the adjoining lot qualify? The adjoining lot qualifies if it is owned by the owner-occupier and used in conjunction with the residence. However, the total actual value reduction for both parcels may not exceed the program limitations specified at the start of this section.

Changes Resulting from an Abatement Petition

An abatement petition approved on a property granted the classification may result in a reduced value reduction amount, a revised total actual value below $200,000, or a value change that reduces the assessed value below the $1000 limit. When this occurs, the value reduction and revenue must be recalculated, and the abated or refunded taxes must reflect the reduced value reduction amount.

If the abatement petition is approved prior to the delivery of the county treasurer’s report to the Administrator for the tax year abated, the reduced value reduction amount must be included in the report to the state treasurer. If the abatement is approved after the March 1 report for the applicable tax year has been delivered, the county treasurer should contact the state treasurer’s office for procedures for returning the excess state revenue.

Exemption on Properties with Prorated Values

When a residence is destroyed, or when it is reclassified as exempt property, the actual value is prorated based on the date of the change. If such property has been granted the classification, the amount of the value reduction is based on the prorated taxable value. Otherwise, the value exempted under the program could be higher than the program limits on the remaining taxable value.

Residence on Agricultural Land

An owner-occupier meets the ownership and occupancy requirements for a residence located on agricultural land. Do the improvement and the land qualify? The improvement qualifies however the land qualifies only if it is classified residential land because it is not integral to the agricultural operation; otherwise, the land does not qualify. The land must receive the residential assessment rate to qualify.

Severed Minerals

A mineral estate is real property, but it is taxed separately only when severed from the surface estate. When the ownership of the surface estate and part or all of the mineral estate are different, a taxable severed mineral interest is created. Therefore, the assessor must determine if the mineral estate is severed as of January 1 of each year, creating a severed mineral interest. A severed mineral interest is subject to the same mill levy and is assigned the same tax area code as the surface ownership.

Mineral Interest Severed Prior Year

Interests severed through a deed or reservation during the previous year must be added to the assessment roll.

1. Pull the accounts severed last year. This flagging system may be manual or computerized.
2. Assign a schedule number to each account, if necessary.
3. Calculate a value for the interest.
4. Enter the grantee, reception number, and sales information on the computer system.

Mineral Interest Rejoined With Surface Prior Year

Mineral reservations that end due to a treasurer’s deed, a mineral deed to the surface owner or mineral reservation expiring must be removed from the assessment roll.

1. Pull the accounts rejoined with the surface the prior year.
2. Remove the accounts from the computer system.

NOTE: Before removing a severed mineral account from the assessment roll, review the treasurer’s tax sale list to verify that the interest was not sold at tax sale. If the mineral was sold, it must remain on the assessment roll.

Mineral Interest Under Production

A mineral interest on acreage that is under production on January 1 must be removed from the assessment roll. Property tax on this interest is paid through assessment of the leasehold value.

1. Review affidavits and determine if there are severed minerals on acreage that is under production as of the assessment date.
2. Remove the account from the assessment roll.
3. Flag the account “under production.”

Production Ends: Severed Mineral Interests Placed Back on Tax Roll

When production ends, a severed mineral interest is placed back on the assessment roll on January 1, two tax years after the tax year in which production ended.

For example: If production ends on July 5, 2020, the production that occurred from January 1 to July 5, 2020, is reported on a declaration schedule in 2021 and is used to value the leasehold interest. Taxes will be due for the leasehold interest in 2022. The severed mineral interest is placed back on the assessment roll for 2022.

Special Districts

Boundary Changes for Special Districts and Municipalities

Definitions

• Annexation: To include property into the boundaries of a municipality
• Inclusion: To include property into the boundaries of a special district, such as fire protection, hospital, metropolitan, park and recreation, sanitation, water and sanitation, water and tunnel districts
• Disconnection: To remove property from the boundaries of a municipality
• Exclusion: To remove property from the boundaries of a special district.

Procedures

1. Review the document to ensure all requirements have been met. The required documents that must be filed with the clerk and recorder are:

   Annexation: The annexation ordinance and a map of the area being annexed, containing a legal description of such area, § 31-12-113(2)(a)(II)(A), C.R.S. 

   Disconnection: The disconnection ordinance or the court order or court decree, §§ 31-12-605 and 707, C.R.S.

   Inclusion: The court order or court decree with a description of the area concerned, § 32-1-105, C.R.S.

   Exclusion: The court order or court decree with a description of the area concerned, § 32-1-105, C.R.S. The exclusion becomes effective the following January 1, § 32-1-502(6), C.R.S.

   No annexation, disconnection, inclusion or exclusion, or change in name of a special district is effective until the proper documents are recorded, § 24-32-109, C.R.S. In order for an inclusion to be effective for the current year, the court order must be filed prior to May 1 or July 1 in case of an election, § 39-1-110(1.5) C.R.S., in order for an exclusion to be effective for the current year, the court order must be filed prior to May 1, § 39-1-110(1.8), C.R.S.

2. Verify the legal description, locate the property described, and identify property records involved, including any personal property accounts.

3. Verify the effective date of the annexation, disconnection, inclusion, or exclusion.

   Since annexations are effective for property tax purposes the following January 1, it is necessary to flag and document the property records requiring a tax area change the following year.

   If the inclusion order was not filed by the May 1 (July 1 for elections) deadline, it is necessary to flag and document the property records requiring a tax area change the following year.

   NOTE: This deadline is general. Many special districts have deadlines specific to that type of taxing entity. Check the statutes governing the special district.

   An annexed property may be flagged for future processing as follows:

   1. A computer flag may be set on property schedules for future computer extraction.
   2. A manual flag may be placed on the property record cards and a filing system set up for the annexation documents and inclusion orders that will not be processed until the following year. These steps will shorten future processing time.

4. Identify the current tax area for the property and determine if a tax area change is required.

   It may be necessary to create new tax areas when:

   In the case of an exclusion from a special district, the excluded property may still be responsible for outstanding indebtedness; therefore, it may be necessary to create a new tax area for that particular situation. Statute requires that the excluded property is responsible for debt but only if the court order recites the existence of debt and the date it is scheduled to be retired §§ 32-1-501(4)(d) and 32-1-503(1), C.R.S. In the case of property disconnected from a municipality, statute requires that the disconnected property remain responsible for any outstanding indebtedness §§ 31-12-502, 31-12-604, and 31-12-705, C.R.S.

   1. A tax area containing the required taxing entities does not exist.
   2. A special district is not allowed to levy against specific taxable property.
5. Change the tax area on property records affected by the boundary change.
   1. Computerized and/or manual records (real and personal property)
      The tax area assigned to the surface is also assigned to the personal property, severed mineral interests, oil and gas leaseholds, possessory interests and natural resource production, such as coal, that may be located on or are coterminous with the surface. Some special districts cannot levy against the personal property whose situs is within their boundaries. To protect against an illegal assessment, check the special district requirements.
      1. Real property includes: all lands or interests in lands; all mines, quarries, and minerals in and under the land, § 39-1-102(14), C.R.S.
      2. Personal property includes: machinery, equipment, and other articles related to a commercial or industrial operation. § 39-1-102(11), C.R.S.
         NOTE: Language provided is only a small portion of the statutory definitions.
   2. Various listings or other files used for certification. If you have a computer system, it may be possible to use the tax area code for setting flags for extraction of the property values for certification of values to taxing entities. For example:
      1. Enter “A” after the tax area to designate an annexation
      2. Enter “I” after the tax area to designate an inclusion
      3. Enter “B” after the tax area to designate both an annexation and an inclusion
6. Make copies of the documents for the:
   1. Mapping Department
   2. State assessed companies
   3. Personal property appraiser
7. Keep a list of the tax area changes throughout the year. It will be useful when certifying values to taxing entities. Refer to Mapping Processes later in this chapter for mapping instructions.

Elections List of Property Owners

The assessor must provide a certified initial listing of property owners within the boundaries of a special district to the designated election official of the district as of the 30th day before the election, §§ 1-5-304 and 1-13.5-204, C.R.S. A supplemental list for the political subdivision is provided on the 20th day before the election, or a district may order a complete list as of the 20th day before the election. The supplemental list contains the names and addresses of all new owners since the initial list was provided, §§ 1-5-304 and 1-13.5-204, C.R.S. Under § 1-13.5-204, C.R.S., the supplemental list shall contain the names and addresses of all recorded owners who became owners no later than 22 days prior to the election.

The assessor may charge the special district for the expense of generating the list, §§ 1-1-104(33), 1-13.5-204, and 32-1-103(14.5), C.R.S. This includes computer run time, paper costs, and employee time. The fee for furnishing the lists is no less than twenty-five dollars for both lists or no more than one cent per name contained on the lists, whichever is greater, §§ 1-5-304 and 1-13.5-204, C.R.S. The designated election official may order a complete list as of the 6th day before the election, § 1-13.5-204(2), C.R.S. 

Any person that is an eligible elector that does not appear on the lists may present to an election judge on election day a certificate of registration issued by the county clerk and recorder or a certificate of property ownership from the county assessor, § 1-13.5-605(2)(b)(II), C.R.S. The certificate of property ownership can be any document supplied and signed by the assessor or staff to show property ownership within the special district. Due to the election requirements of 1992 Amendment 1, it is imperative that county assessors have current tax area maps in addition to special district maps. Each district is required to file such map with the assessor on or before January 1 of each year, § 32-1-306, C.R.S. Additionally, county clerks or the special district designated election official may request information on “overlapping” districts because of the necessity of coordinated elections. Coordinated elections require the selection of polling places convenient to all electors. County clerks may request maps of overlapping districts to help the directors choose coordinated polling places, §§ 1-1-104(6.5) and 111(3), C.R.S.

Formation of a New Special District

Title 32 special districts are formed under the provisions of title 32 of the Colorado Revised Statutes. Examples of title 32 districts include: ambulance, fire protection, health service, metropolitan, park and recreation, water and sanitation. Different statutes govern other types of districts. The Division of Local Government publishes “Special Districts: Formation and Statutory Responsibilities,” which delineates the necessary steps in the title 32 district formation process.

The Assessor’s Role in Formation of a Title 32 District

1. The organizers of a special district file a service plan with the board of county commissioners. The board of county commissioners sets a date for a public hearing on the plan. The organizers notify all real and personal property owners in the proposed district of the hearing not more than 30 or less than 20 days prior to the hearing, giving the date, time, location, type of district and purpose of the hearing. The organizers will request a real and personal property ownership list with mailing addresses from the assessor. The map and legal description of the proposed new district should be given to the assessor as soon as possible so the assessor has ample time to identify the properties in the district.

   If the proposed district is contained entirely within the boundaries of a municipality or municipalities, a resolution of approval by the governing body of each municipality is required. All approval authority for the organization of the district rests with the governing bodies of the municipalities in which the district is located rather than with the board of county commissioners.

2. After approval of the service plan by the board of county commissioners, the petitioners file a petition for organization of the proposed district in district court.
3. When any petition for organization of a special district is filed, the clerk of any court or board or any other officer with whom the petition is filed, sends written notification of the organization to the assessor, the board of county commissioners, and the Division of Local Government. The notice specifies the boundaries of the proposed political subdivision.
4. If the petition for organization is found to have conformed to all legal requirements, the court orders an election held on the question of organization of the proposed district.
5. The county assessor furnishes a certified list of all owners of taxable real and personal property to the special district no later than 30 days before the election. A supplemental list is provided no later than 20 days prior to the election and should contain the names of persons who became property owners after the initial list was generated. The assessor may charge the special district for the expense of generating the list. The fee for furnishing the lists is $25 for both lists (real and personal) or no more than one cent per name. The designated election official may order a complete list as of the sixth day before the election, § 1-13.5-204(2), C.R.S.
6. If the voters approve the organization of the district, the court declares the district organized. Within 30 days of the organization, the special district records the court order, files a copy of the service plan with the clerk and recorder, and files a map of the district with the county assessor, § 32-1-306, C.R.S.

Authority to Tax

A political subdivision cannot levy a tax for the calendar year in which it has been organized unless, prior to July 1, the assessor and the board of county commissioners have been notified of its organization and have received an official notice that a tax will be levied for such year, § 39-1-110(1), C.R.S.

Maintaining Current Records

On or before January 1 of each year, each special district shall file a current, accurate map of its boundaries with the clerk and recorder. The district shall also maintain a current, accurate map on file with the assessor and the Division of Local Government as of January 1 each year, § 32-1-306, C.R.S.

On or before January 15 of each year, special districts file a copy of the notice as required by § 32-1-809, C.R.S., with the assessor, the board of county commissioners, and other officials specified in statute, that includes the name of the chair of the board, the contact person, the telephone number, and the business address of the special district, § 32-1-104(2), C.R.S.

Processing a New Special District

1. Verify that the necessary documents were filed according to the statutory requirements and guidelines. A file for each special district should be created in which all of the necessary documents for the district formation are kept. These documents include:
   1. Copy of the approved service plan
   2. Map of the district
   3. Legal description of the district
   4. A copy of the recorded court order
2. Based on the newly formed special district boundaries shown on the map and the boundary legal description, locate the properties that are included in the new district.
3. Identify the real and personal property included in the district boundaries. List the parcel numbers, schedule numbers, or account numbers that are affected.
   1. Real property includes: all lands or interests in lands; all mines, quarries, and minerals in and under the land, and improvements, § 39-1-102(14), C.R.S.
   2. Personal property includes: machinery, equipment, and other articles related to a commercial or industrial operation, § 39-1-102(11), C.R.S.
4. Identify the current tax area(s) in which the properties lie and determine if a tax area change is required. 
   Include the new special district in the identified current tax area(s) that are wholly included in the boundaries of the new special district.
   It may be necessary to create new tax areas when:
   1. The boundary for the new special district does not follow existing tax area boundaries or if specific properties within the special district boundaries have been excluded from the special district such as recreation districts must exclude agricultural land 40 acres or more in size cannot be included in a recreational district or in any metropolitan district providing recreational parks or recreational programs and facilities, § 32-1-307(1), C.R.S.
   2. A special district is not authorized to levy against certain property, such as a weed control district cannot levy against personal property.
5. Change the tax area on property records affected by the creation of the new special district.
   1. Manual and/or computerized records (real and personal property)
   2. The tax area assigned to the surface is also assigned to the personal property, severed mineral interests, oil and gas leaseholds, possessory interests, and natural resource production such as coal that may be located on or are coterminous with the surface. Some special districts cannot levy against the personal property whose situs is within their boundaries. To protect against an illegal assessment, check the special district requirements.
      1. Real property includes: all lands or interests in lands; all mines, quarries, and minerals in and under the land. § 39-1-102(14), C.R.S.
      2. Personal property includes: machinery, equipment, and other articles related to a commercial or industrial operation. § 39-1-102(11), C.R.S.
6. If it was necessary to create new tax areas, maps of the new tax areas should be sent to all necessary state assessed companies where their apportionment of value will be affected by the new district creation.
7. The assessor’s database should now recognize the properties within the district and be capable of producing a summary of the values for certification purposes for the new district. A test certification report should be run to verify that all of the properties within the district are accurately identified.

Inactive Special Districts

When a title 32 special district in a predevelopment stage meets the definition of “inactive special district” found in § 32-1-103(9.3), C.R.S., its board of directors may adopt a resolution declaring the district inactive and file a notice of its inactive status, on or before December 15, with the board of county commissioners, assessor, treasurer and other specified entities, § 32-1-104(3)(a), C.R.S. Each year thereafter, an inactive special district shall file a notice of continuing inactive status. The board of an inactive special district may return the district to active status at any time. When an inactive special district returns to active status, it shall file a notice of its return to active status with the same entities. An inactive special district is exempt from certain legal requirements.

The Division recommends that assessors maintain current boundaries and certify values to inactive special districts. 

Special Notices of Valuation

Assessors are allowed under statute to change property values after regular notices of valuation have been mailed, but only in the following circumstances:

• Omission of property from the tax warrant
• New construction added to assessment roll after May 1
• Titled manufactured home moved into the county from out of state
• Titled manufactured home not exempt as inventory
• Forfeiture of exempt status of property
• Revocation of exempt status by the Property Tax Administrator
• Loss of exempt status due to transfer of property
• Loss of exempt status because property is no longer leased by the state or political subdivision of the state
• Under-reported oil and gas volume
• Under-reported oil and gas wellhead selling price

If values are changed based on one of the reasons above, the taxpayer must be given due process to challenge the new value. The Division of Property Taxation recommends that the assessor send the taxpayer a Special Notice of Valuation that gives the taxpayer notice of the new value and the opportunity to challenge the value. Circumstances that warrant a Special Notice of Valuation are detailed below.

Refer to Chapter 9, Form Standards, of this manual for the Special Notice of Valuation and protest form requirements and the form approval process.

Omission of Property from the Tax Warrant

Upon discovering any taxable property that has been omitted from the tax warrant, the assessor immediately values such property. To comply with the notice and hearing requirements demanded by due process, the assessor notifies the owner of the property’s valuation by mailing a Special Notice of Valuation and a protest form. The Division recommends that the owner be provided a 30-day protest period.

New Construction Added to Assessment Roll after May 1

A Special Notice of Valuation and protest form are mailed for new construction discovered after May 1. The Division recommends that the owner be provided a 30-day protest period.

Manufactured Home Moved into the County

When a titled manufactured home moves into the county from out of state, the assessor values the home. A Special Notice of Valuation and Protest Form must be mailed to the owner of the property and a protest period allowed. The Division recommends that the owner be provided a 30-day protest period.

Manufactured Home not Exempt as Inventory

A real property Special Notice of Valuation and protest form should be sent to a taxpayer when a titled manufactured home loses exempt status because it is no longer listed as dealer inventory and located on a manufactured home dealer’s sales display lot. The property is reclassified, and the value of the property is prorated for the number of days that the property is taxable, § 39-3-129, C.R.S. The Division recommends that the owner be provided a 30-day protest period.

Forfeiture of the Exempt Status of Property

When the assessor receives a copy of the Notice of Forfeiture, the property is classified, valued and put on the tax roll. The value of the previously exempt property is determined or verified, and a Special Notice of Valuation and protest form is immediately mailed to the property owner. The Division recommends that the owner be provided a 30-day protest period. The property is taxable as of either January 1 of the current or prior year.

See also Chapter 10, Exemptions, of this manual for more information on forfeitures.

Revocation of Exempt Status by the Property Tax Administrator

Upon receiving the Notice of Revocation, the assessor classifies and values the property, returns the property to the tax roll, and mails a Special Notice of Valuation and protest form to the property owner.

The Division recommends that the owner be provided a 30-day protest period. The notice will reflect either a prorated value or a full year’s value depending upon the date of the revocation.

Loss of Exempt Status Because of Transfer of Property

Whenever exempt property is sold or transferred, the exempt status is lost unless the property is transferred to a governmental entity.

Upon receiving a copy of a deed that involves exempt property, the assessor’s office processes the transfer. The date of the transfer is considered to be the date the title was conveyed, not the date the deed was filed with the clerk for recording. The property is reclassified, and the value of the property is prorated for the number of days that the property is taxable, § 39-3-129, C.R.S. The Division recommends that a Special Notice of Valuation and protest form be mailed to the new owner and the new owner be provided a 30-day protest period.

Whenever assessor’s personnel process a transfer on a property that has been granted an exemption by the Division, a copy of the deed should be forwarded to the Division as owners rarely remember to notify the Division when property is sold.

If it appears that the new owner might also qualify for exemption, the owner should be contacted by the assessor’s office with instructions to either contact the Exemptions Section at the Division or obtain an application from the Division’s website at http://dola.colorado.gov/dpt. Exemptions do not run with the land, and each new owner must be granted its own exemption. A good example of this is when one church sells its property to another, even if the churches appear to be affiliated. The new church must apply for its own exemption. It is important to notify the new owner promptly that an application must be filed. The Administrator cannot grant an exemption for tax years earlier than the year prior to the year in which the application was filed. Delay in notifying the owner could result in the denial of the opportunity to apply for exemption for years in which it could be granted. There are no remedies such as abatements available to those who fall outside the noted time frame.

If personal property loses exempt status, the property is not taxable until the following January 1.

Loss of Exempt Status Because Property is No Longer Leased by the State or Political Subdivision of the State

When property qualifies for exemption because it is leased by the state or a political subdivision of the state, the property is exempt from property taxation until the term of the lease or rental agreement expires.

The property becomes taxable on the day following the date the lease or rental agreement expires. A Special Notice of Valuation listing the pro-rated value of the taxable property should be mailed to the owner of the real property.

The Division recommends that a Special Notice of Valuation and protest form be mailed to the new owner and the new owner be provided a 30-day protest period.

Under-Reported Oil and Gas Volume

Omitted valuation determined as a result of understated or omitted production volume is classified as omitted property and can be placed on the tax roll within six years. Similarly, omitted property due to the under-reporting of the wellhead selling price can be added to the tax roll within six years. The Division recommends that a Special Notice of Valuation and protest form be mailed to the new owner and the new owner be provided a 30-day protest period.

Procedures for Issuing a Special NOV

In all cases requiring a Special Notice of Valuation, the property is valued and the owner is notified of the valuation by the special notice. Refer to Chapter 9, Form Standards, for a sample of the Special Notice of Valuation and a sample of the special protest form. The notice should also advise the owner of administrative remedies.

In the case of omitted property that has been valued for two or more prior years, a special notice is generated for each year the property was omitted. When determining the actual value of property for past years, the assessor must use appraisal data from the appropriate level of value. The assessed value and taxes due must be calculated using the appropriate assessment percentage and tax area (dictates the mill levy) for past years.

The owner should be provided a protest period of 30 days from the date of the special notice. The 30-day protest period is not specifically provided by statute; however, a reasonable protest period helps to preserve the right of due process. If a protest is filed, the assessor should respond to the protest within 30 days. After the protest period expires or the protest is resolved, the treasurer is notified of the value of the omitted property and the taxes due for prior years.

A special notice of determination form is provided for this purpose in Chapter 9, Forms Standards. If the owner disagrees with the assessor’s decision on omitted property for the current year, including new construction, the county board of equalization may hear an appeal on the issue from July 1 through August 5. As with protests filed during the regular protest period, taxpayers cannot appeal to the county board without first filing a protest with the assessor.

To appeal omitted property values for prior years or when the timing of the special notice is outside the regular protest period, an abatement petition may be filed to allow the valuation appeal to be heard by the county commissioners. The abatement petition must be filed within two years of the January 1 following the year in which the taxes are levied. For omitted property, the taxes are levied on the date the tax bill is mailed. The abatement may be filed for any or all years the property was omitted.

State Lands Sold

1. Review the state lands sold list distributed by the State Board of Land Commissioners. Send the list fee to the Land Commission. This list contains the following information:

   1. Purchaser and purchaser’s address.
   2. Legal description and number of acres.
   3. Date sold.
   4. Purchase price.

   If this list is not received by May 1, contact the State Board of Land Commissioners, 1127 Sherman Street, Suite 300, Denver, CO 80203, 303-866-3454.

2. Pull the record cards for each legal description on the list.
3. Verify the ownership, legal description, acreage, tax area, and abstract codes.
   NOTE: The land should be classified according to the land use. Refer to Chapter 6, Property Classification Guidelines and Assessment Percentages, for classification descriptions.
4. Prorate the land value for the current year based on the number of days it was taxable. The date of delivery of the deed determines the first taxable day.
5. Update the value in the computer system
6. It is helpful to attach a computer flag to these accounts so they can be pulled directly from the computer system.

The Assessor’s Role in a Disaster

Black’s Law Dictionary, Eighth Edition, defines “disaster” as “a calamity; a catastrophic emergency.” It also defines a “disaster area” as “a region officially declared to have suffered a catastrophic emergency such as a flood or hurricane, and therefore eligible for government aid.” Major disasters are caused by hurricanes, earthquakes, floods, tornadoes, droughts, blizzards, geologic hazards, fires, or terrorist attacks. When a major disaster strikes, the President of the United States determines if supplemental federal aid is warranted. To qualify for federal assistance, the disaster must be of such severity and magnitude that effective response is beyond the capabilities of the state and/or local government. If the president issues a Major Disaster Declaration, the disaster area receives financial assistance from the Federal Disaster Relief Fund, managed by the Federal Emergency Management Agency (FEMA), and other Federal disaster aid programs such as the Small Business Administration (SBA).

Obtaining a Major Disaster Declaration typically involves the following steps:

• Local government responds, supplemented by neighboring communities and volunteer agencies. If the groups are overwhelmed, they may turn to the state for assistance;
• The state responds with state resources, such as the National Guard and state agencies;
• Damage assessments are made by local, state, federal, and volunteer organizations to determine losses and recovery needs;
• A Major Disaster Declaration is requested by the governor based on the damage assessment. The governor must agree to commit state funds and resources to the long-term recovery;
• FEMA evaluates the request and provides its recommendation to the President;
• The president approves the request or FEMA informs the governor if the request has been denied. This decision process could take a few hours or several weeks depending on the nature of the disaster.

A limited view of the assessor’s role during a major disaster is dictated by the Colorado Constitution, statutes, and case law. Demolished and destroyed real property must be inventoried and prorated to the date of destruction, § 39-5-117, C.R.S. Personal property is not prorated, § 39-5-104.5, C.R.S., but the total assessed value of destroyed business personal property listed on a single schedule is included in the report to the county treasurer per § 39-1-123(2)(a)(II), C.R.S. Refer to Chapter 4, Assessment Math. During an intervening year, real property values may also be changed when property is demolished or destroyed by any detrimental act of nature, § 39-1-104(11)(b)(I), C.R.S. Refer to Chapter 6, Property Classification Guidelines and Assessment Percentages, for rules pertaining to the classification of land on which residential improvements were destroyed by a natural cause as outlined in § 39-1-102(14.4)(b), C.R.S. Properties that have been granted the Senior Exemption are handled per § 39-3-203(6)(a)(I.5), C.R.S. Refer to Senior Citizen and Veteran with a Disability Exemption in this chapter.

The assessor’s civic responsibilities, as an elected official of the county, should go beyond the proration of real property values. The assessor can play a key role in the development of the county disaster plan. Each county has a county emergency manager and an Emergency Operations Plan. Each county emergency manager is involved in disaster mitigation, response, and recovery. Emergency plans are written for each phase of a disaster. The assessor should thoroughly acquaint the emergency manager with the resources of the assessor’s office that may prove to be invaluable in a disaster. These resources include maps, GIS data, real property classifications, physical inventories, structure diagrams and values, site pictures, property ownership records, aerial photographs, and employees trained in appraisal and management who could be of assistance during a disaster.

In preparing or updating the county Emergency Operations Plan, the county emergency manager should delineate the assessor’s responsibilities, such as:

• Contributing personnel, records, and other resources such as, parcel maps, GIS data, real property classifications, physical inventories, structure diagrams and values, site pictures, property ownership records, and aerial photographs used to support the damage assessment function. This includes the participation of the assessors staff on the Emergency Operations Center (EOC) damage assessment team. Typically, personnel that will be involved in damage assessment must have specialized training offered by the Colorado Department of Emergency Management.
• Developing and maintaining a Continuity of Operations plan is part of the Emergency Operations Plan. This requires the assessor and his or her staff to determine how operations could be continued, from remote location(s) if necessary, in the event of a disaster. The Continuity of Operations plan for the assessor’s office should contain:
  • The chain of command and directives that must be followed during a disaster, including where staff will assemble during and after a disaster. This location may or may not be the current location of the assessor’s office. Other county facilities such as a fairgrounds building or a county road department building may serve as the base of operations. This should also be coordinated with other county offices, and be included in the county-wide Emergency Operations Plan. 
  • Alternate communication for assessor’s office employees should be established through cell phone listings and a communication tree. Communications for employees without cell phones should also be established. Each employee should have a copy of the telephone tree and an understanding of their responsibilities during and after a disaster. The telephone tree must be reviewed regularly and updated as needed. Generally, the assessor will be in contact with the supervisors and the supervisors will be in contact with their respective employees. If a disaster occurs during normal working hours, field staff outside of the office should report to their immediate supervisor.
  • A narrative of the duties and obligations of the assessor’s office, including the day-to-day tasks that are required to fulfill those duties and obligations. For example, producing the tax roll (tax warrant) is a primary duty of the assessor’s office. The treasurer must have the tax warrant in order to issue tax bills and collect the property tax that funds the operation of all of the taxing jurisdictions. The tasks required to produce the tax roll should be outlined. Each duty that is legislative or regulatory in nature should be addressed in the Continuity of Operations plan.
  • The critical processes and services that support each duty as well as the personnel needed to perform each duty. For example, the duty of producing the tax roll requires appraisers to accomplish the task of establishing values using current property characteristics and amenities, computer appraisal software, and mass appraisal modeling. In addition, administrative personnel must maintain current ownership records in the database. (This example is not intended to reflect the complete task description necessary for the Continuity of Operations plan.)
  • Identify all records, equipment, and systems needed to perform each duty from remote location(s) if necessary.
  • Each duty should be classified as critical, essential or secondary. Critical duties affect life, safety and/or the protection of property. For each duty the timetable necessary for completion should be listed. For example, the duty of producing the tax roll may be critical to the financial operations of government. Many of the tasks required to produce the tax roll occur at various times throughout the year.
  • The ramifications of not completing the duties within a given period of time. For example, if the assessor did not produce the tax roll, could the county and other taxing jurisdictions continue to operate?
  • Clarify if the duties of the assessor’s office support an essential function of another department. For example, the treasurer’s office relies on the assessor’s office to produce the tax roll.

Adequate disaster/emergency management training should be provided to the assessor’s staff. The county emergency manager may conduct a disaster drill in which the assessor and his/her staff participate.

Title Conveyance 

For assessment purposes, ownership of real property is determined based on documents recorded with the clerk and recorder, § 39-5-102, C.R.S. These documents provide information necessary to change title on property. Correct ownership information is necessary to effectively accomplish key statutory tasks in the assessor’s office, such as sending notices of value and personal property declarations, issuing out-of-state ownership lists, confirming and analyzing sales data, and producing an accurate tax warrant. These duties are best performed if title conveyance documents are processed continuously and timely, ideally within two weeks of recording. The following list identifies typical documents that should be retrieved from the clerk and recorder’s records. This list is not all-inclusive. Other documents that may be recorded to evidence a change in ownership are amendments to condominium declarations, bills of sale, assignments, and leases.

• Bargain and Sale Deed
• Bankruptcy Deed
• Beneficiary Deed
• Confirmation Deed
• Conservation Easement
• Conservator Deed
• Correction Deed
• Court Decrees
• Court Orders
• Death Certificate
• Decree of Heirship
• Decree of Distribution
• Disclaimer of Joint Tenancy*
• Divorce Decree*
• Easements Deed
• Executors Deed
• Guardianship Deed
• Installment Land Contract*
• Letters of Administration*
• Letters Testamentary*
• Mineral Deed
• Mining Deed
• Patent
• Personal Representative Deed
• Power of Attorney*
• Public Trustee’s Deed
• Quitclaim Deed
• Sheriff’s Deed
• Special Warranty Deed
• Statement of Authority*
• Supplementary Affidavit*
• Treasurer Deed
• Trustees Deed
• Verification of Death Document
• Warranty Deed

* Documents that are supplemental evidence of transfer; these documents alone do not affect a change in title.

A deed is the usual document used to convey real property and evidence of the transfer of property. Before processing ownership transfers, one needs to understand the types of documents and how title is vested. Before any changes are made, the deed must first be reviewed to confirm that it is valid.

Elements of a Deed

Listed below is a brief description of the elements needed for a deed to be valid. See Addendum 3-B, Elements of a Deed for an illustration of a deed along with a more detailed description of each element.

Must be Written

To be effective, a deed must be in writing, § 38-10-106, C.R.S.

Grantor/Grantee must be Designated

The grantor and the grantee must be listed on the deed. In order to transfer title, the grantor’s name on the deed must match the assessor’s ownership records; although certain minor name variances do not necessarily invalidate a deed.

Grantor: Person(s) deeding property

Grantee: Person(s) receiving property

Recital of Consideration

Something of value must be passed from the grantee to the grantor, in exchange for the property. Typically this is expressed in terms of cash, but it can also be expressed as a non-material exchange. Some common examples are “love and affection” or “other goods and valuable services.”

Words of Conveyance

A document is not construed to be a deed unless it contains words that manifest intent to transfer title, § 38-30-113, C.R.S. Words that express this intent include grant, bargain, sell and convey, or quit claim. This is also the portion of the deed where you will find mineral reservations and life estate reservations.

Property Description

The property must be uniquely identified. The legal description, and either the street address or identifying numbers that appear on buildings on the property must be listed on the instrument, § 38-35-122(1)(a), C.R.S. To aid with identification, preparers of conveyance documents may include the assessor’s parcel or schedule number immediately before or after the legal description, § 38-35-122(1)(b), C.R.S.

Delivery of the Deed

Delivery confirms the intent of the grantor. According to Colorado statute, when a deed is acknowledged and recorded, it is prima facie (at first sight) evidence of delivery, § 38-35-101(4), C.R.S.

For assessment purposes, the date of delivery is instrumental in determining which sales will be included in the data-gathering period as well as determining the taxable and exempt values on properties that are prorated throughout the year.

Signature

The deed must contain the original signature of the grantor or the grantor’s agent. The grantor’s agent is anybody given representative capacity to act on the grantor’s behalf. Supplemental documents that evidence such authority include statements of authority, trust documents, power of attorney, or fiduciary designations contained in articles of incorporation.

The following additional elements of a deed are usually present, though not required.

Date of the Deed

There are generally four dates on a deed. They are:

1. Date of delivery: The date title passes to the grantee (shown in the signature area of the deed)
2. Date acknowledged: The date the deed is signed by the grantor and acknowledged by a notary public
3. Date made: The date the deed was prepared
4. Recording date: The date the deed was recorded by the clerk and recorder

NOTE: The order of dates listed above represents the order in which they should be considered for determining the date of sale.

Exceptions or Restrictions

These are found in the habendum clause. Except as specifically mentioned in the deed, the grantor is responsible for conveying property, which is free and clear of all encumbrance and restrictions. Typical restrictions deal with minimum zoning regulations, mineral reservations, and easements of record. And, the grantor can place any restriction on the property that he/she deems appropriate, as long as it is legally permissible.

Warranties and Covenants

These are found in warranty deeds, but not in quitclaim deeds, § 38-30-113(1)(d), C.R.S. Warranty deeds, as well as bargain and sale deeds, convey “after acquired title.” After acquired title means that the grantor can convey title before it is acquired. Once acquired, title immediately passes to the grantee named in the deed. Quitclaim deeds convey only the grantor’s present interest in the property, if any.

Acknowledgment of Grantor’s Signature

This is required by §§ 38-35-101, 104, and 106, C.R.S. The purpose of the acknowledgment is to establish proof of proper execution and proof that the execution of the document was a free and voluntary act. If it is not acknowledged, the document must remain on record for 10 years or more before it can be used as evidence of the transaction, unless signature is first proven. Please note that it is not necessary for a document to be acknowledged to be eligible for recording, and title should be transferred on the assessment record.

Recording

Although not required for a deed to be valid, the recording of the deed protects an innocent purchaser and/or lien holder and gives legal notice to the world of the transaction. A deed is valid even though not recorded. Section 38-35-109, C.R.S., states a deed “may be,” not “must be” recorded. But there is a “caution.” Colorado is a “race to the courthouse” state in which no unrecorded deed will be valid against any person who has recorded rights in or to such real property. A prudent grantee (buyer) would insist that the deed be recorded.

Ownership Interests

Concurrent Interests

An undivided interest is defined as an interest in property that cannot be physically identified as being distinct and separate from the interests of other owners.

If the same estate in land is owned by two or more persons, each of the owners is referred to as a co-tenant or a co-owner. Co-ownership in Colorado is classified as joint tenancy (JT) or tenancy in common (TC). The fundamental difference between these types of co-tenancy is that joint tenancy guarantees that title passes automatically to the surviving owners upon the death of one tenant. Whereas tenancy in common requires that the decedent’s interest is passed to his/her estate or heirs.

Joint Tenancy

In order to create a joint tenancy, the words of conveyance must contain specific language establishing the joint tenancy with right of survivorship. The abbreviation “JTWROS” and the phrase “as joint tenants with right of survivorship” shall have the same meaning as the phrases “in joint tenancy” and “as joint tenants,” § 38-31-101(1), C.R.S. A deed identified as a Joint Tenancy Deed in the header or footer does not establish joint tenancy if the words of conveyance do not also include these words or phrases. A caveat: conveyance to two or more personal representatives, trustees, or other fiduciaries is presumed to be joint tenancy, § 38-31-101(3), C.R.S.

Statute recognizes the “doctrine of the four unities,” that is required for joint tenancy. The “doctrine of four unities” - time, title, interest, and possession – provides that a joint tenancy is created by conveyance or devise of real property to two or more persons at the same TIME of the same TITLE to the same INTEREST within the same right of POSSESSION and includes the right of survivorship, § 38-31-101(1.5)(c), C.R.S.

Time: Each joint tenant must receive the property interest at the same time.

Title: Each joint tenant must receive his or her interest in the property on the same instrument.

Interest: The interests in a joint tenancy may be equal or unequal, § 38-31-101(6)(a), C.R.S. The interests in a joint tenancy are presumed to be equal without notice of unequal interests according to a document recorded pursuant to § 38-35-109, C.R.S.

Control/Possession: Each joint tenant must have the right to possess and enjoy the entire property.

If a joint tenant conveys his or her interest in the property, the joint tenancy for the interest conveyed is terminated, and the new grantee becomes a tenant in common with the remaining owner or owners. If two joint tenants remain, they remain joint tenants with each other, but they are tenants in common with the new owner/owners.

Joint tenancy can also be severed by unilaterally executing and recording an instrument conveying a joint tenant’s interest in real property to himself or herself as a tenant in common. If there are two or more remaining joint tenants, they shall continue to be joint tenants among themselves, § 38-31-101(5)( a), C.R.S.

Upon the death of a joint tenant, and where there is one surviving joint tenant, the decedent’s interest automatically vests with the surviving joint tenant. In the case of two or more surviving joint tenants, the decedent’s interest vests proportionately to the respective interests of the surviving tenants, as determined when the joint tenancy was created, § 38-31-101(6)(c), C.R.S.

Tenancy in Common

Tenancy in common is co-ownership that exists whenever two or more persons or entities simultaneously own the same property. Each tenant in common owns an undivided interest in the whole of the property and each interest is presumed to be equal, unless the deed specifies unequal interests.

Decedent’s Estates

Property held in Joint Tenancy

Property owned by a decedent in joint tenancy is transferred automatically, without being included in the decedent’s estate for administration.

Section 38-31-102, C.R.S., requires recordation of the death certificate or verification of death document and a supplementary affidavit, which includes the legal description of the real property and statement that the decedent was the same person named in a specific recorded deed or similar instrument creating the joint tenancy of property described in the affidavit. Section 38-35-112, C.R.S., requires recording only the death certificate or verification of death document. This is a conflict in the statutes.

Title Standard 7.1.1 of the Colorado Real Estate Title Standards states that as a matter of practice the affidavit is not necessary unless it is used to correct a name variance between the name on the death certificate and the name in which title was held.

Property held in a Life Estate

Property in a life estate is transferred automatically, without being included in the decedent’s estate for administration. The transfer of property in this category is commonly evidenced by recording a death certificate or verification of death document.

Property held as Tenants in Common

By law, title to a decedent’s estate vests in his or her heirs at law or beneficiaries of a valid will upon the death of the decedent. However, the heirs of a decedent must be determined and confirmed by a court order for an intestate estate (without a will) or by an order of probate for a testate estate (with a will). The administration of estates is governed by the Colorado Probate Code. Colorado law applies to all issues concerning land located in Colorado, regardless of where the owner lived at the time of death.

Other Title Conveyance Topics

Entity Name Changes

A corporation, LLC, or other statutory entity may change its name by filing a Statement of Change with the Colorado Secretary of State, § 7-90-305.5, C.R.S. A county assessor shall rely on a recorded Statement of Change to update their ownership records pursuant to § 39-5-102, C.R.S.

The Statement of Change must be recorded in each county where the entity owns real and/or personal property. The entity changing their name should not be advised to record an additional conveyance document.

Mergers and Conversions

Merger

Part 2 of article 90 of title 7, C.R.S., establishes the legal authority for the combining of two or more separate entities, such as corporations or LLCs, into a single entity.

A merger begins with the mutual agreement of the entities and becomes effective when the surviving entity files a Statement of Merger with the Colorado Secretary of State. Colorado law (§ 7-90-204, C.R.S.) provides that all property of the merged entities “vests as a matter of law to the surviving entity.” This vesting is automatic; no deed is required and no consent or approval of any other person is necessary.

Once the Statement of Merger is recorded with the county clerk and recorder where the property owned by the entity is located, the assessor may rely on the Statement of Merger to make the ownership change without the necessity for conveyance from the prior entities.

Conversion

Part 2 of article 90 of title 7, C.R.S., also establishes the legal authority for the conversion of an entity from one form to another, such as conversion from a partnership to a limited liability company or conversion from a for-profit corporation to a non-profit corporation.

A Statement of Conversion is filed with the Colorado Secretary of State. Once the Statement of Conversion is recorded with the county clerk and recorder where the property owned by the entity is located, the assessor may rely on the Statement of Conversion to make the entity change without the necessity for conveyance from the prior entity.

Procedures

According to § 39-5-102, C.R.S., the assessor ascertains property ownership from the clerk and recorder’s records.

When an assessor’s office receives a recorded Statement of Merger from the clerk and recorder, the assessor should identify any property owned by the entities described on the Statement of Merger. The ownership record should be changed into the name of the surviving entity as listed on the Statement of Merger.

When an assessors’ office receives a recorded Statement of Conversion from the clerk and recorder, the assessor should identify any property owned by the entity and change the entity type on the ownership record. For example, the ownership for XYZ Limited Partnership is changed to XYZ Corporation.

Reservations

Reservations for severed minerals and life estates are generally found in the granting clause, although sometimes they will appear in the habendum clause. Typically, reservations will contain the language “reserving unto the grantor.” Severed mineral interests are usually reserved but could also be conveyed: “reserving unto grantor x interest in minerals” or “convey minerals on or under the following described property.” Life estates can be created either with a conveyance, “conveys to A for life” or through a reservation, “reserving unto A a life estate.”

It can be confusing when language regarding several mineral interests or life estates appears in the habendum clause. It may be that the grantor is recognizing and excepting minerals or a life estate from the warranty; or, if there is language saying “reserving interest in minerals,” it may be that the grantor is attempting to reserve minerals. The key word here is “reserving.” If language in the deed is not clear, the grantor, grantee, or real estate agent involved should be contacted to determine the intention of the parties.

Quiet Title Decree

A Quiet Title Decree is a court order issued by a State or Federal District Court that determines title or other interest in real property. It is usually the result of a lawsuit filed to determine interests in real property. It can change the ownership of title to real property as well as vest or divest various interests in the property. In order for a Quiet Title Decree to be effective, the individuals or entities whose interests in the property are affected must be properly brought before the court, having been served with process as required by statute. A Quiet Title Decree may be challenged by any defendant who was not personally served with process in the lawsuit for a period of six months after the date of the decree. If the challenged Quiet Title Decree is found to be invalid, a court order or a lis pendens showing a pending lawsuit challenging the decree must be recorded.

Before the assessor’s records are changed based on a Quiet Title Decree, the assessor’s staff must verify that the record owner of the property was named as a party to the lawsuit. If a person owning or claiming an interest in the subject property is not named as a party to the lawsuit, the Quiet Title Decree issued by the court has no effect on that person’s interest in the property.

Name Variances

Real property instruments filed with a county clerk and recorder allow for certain name variances in instruments affecting title to real property. Section 38-35-116, C.R.S., states in part:

• The middle name or the initial of a middle name appearing in a name contained in an instrument affecting the title to real property or in a signature or an acknowledgment shall be deemed prima facie to be a material part of such name.

One or more of the following variances between any two instruments affecting the title to the same real property shall not destroy or impair the presumption that the person so named is the same person in both instruments:

• The full first name appearing in one and only the initial letter of the first name appearing in the other;
• A full middle name appearing in one and only the initial letter of the middle name appearing in the other;
• The initial letter of the middle name appearing in one and not appearing in the other; or
• A full middle name appearing in one and not appearing in the other.

Title Conveyance Procedures

1. Obtain necessary conveyance documents from the clerk and recorder’s records.
2. Review the conveyance document. Check for necessary deed elements. Check for severed mineral reservations. Determine if the deed has a documentary fee.
   1. If the conveyance document created a newly severed mineral interest, the interest must be flagged so it can be listed and valued on the next year’s assessment roll.
   2. If the conveyance document reflects a non-documentary fee transaction, enter the appropriate sales code into the computer system.
3. Verify that a Real Property Transfer Declaration (TD-1000) has been filed for every transaction involving a documentary fee, §§ 39-14-102, 39-13-102, C.R.S.
   1. Review the information included on the TD-1000 and mail a follow-up confirmation letter or questionnaire if more information is needed.
      1. If the TD-1000 is complete and reflects an arm’s-length sale, code the transaction as qualified and enter into the computer system.
      2. If the TD-1000 is complete and indicates the sale is not arm’s-length, code the transaction as an unqualified sale and enter a reason code into the computer system.
   2. Attach the TD-1000 to the conveyance document and file for in-house reference.
      Note: Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 3, Sales Confirmation and Stratification, for detailed procedures for sales confirmation.
   3. If a TD-1000 was not filed or is incomplete, mail the grantee a TD-1000 form and explain that a penalty will be applied if it is not completed and returned. If the TD-1000 is incomplete, highlight the appropriate area(s) needing completion, return the document to the grantee, and explain to the grantee your reasons for returning the document.
      1. Flag the parcel in the computer system to receive a penalty.
      2. Add the parcel information concerning the mailed declaration to a tracking log.
      3. Remove the penalty flag if the declaration is returned.
4. Sort the conveyance documents into the following categories:
   1. Subdivisions.
   2. Township and range.
   3. Metes and bounds.
      (Parcel number is an alternate sort category.)
5. Locate the property on the assessment map and determine if the conveyance is a straight transfer or creates a merger or split.

6. Sort the documents into the following categories:

   1. Straight transfer.
   2. Death certificate or verification of death document and/or supplemental affidavit.
   3. Severed mineral transfer or reservation.
   4. Merger.
   5. Split.

   NOTE: The process for ownership changes resulting from the filing of a death certificate or verification of death document for property held by joint tenants and severed mineral transfers that do not require interest changes are considered straight transfers. When the transfer requires an interest change, or the splitting or merging of parcels, additional steps are necessary.

7. Pull the necessary ownership records.
8. Verify the legal description. Contact the necessary parties by telephone or letter if an error exists in the legal description.
9. Verify that the owner’s name appearing on the ownership record is identical to the name listed on the deed. If the names are identical and the process is a straight transfer, simply change the ownership. If the names are not identical:
   1. Research clerk and recorder’s records for missed documents.
   2. Review any name variances per § 38-35-116, C.R.S.
   3. Contact the necessary parties by telephone or letter.

10. If a conveyance causes a split or merger, give the document to the mapping department for parcel number changes.

    When the conveyance causes a split, merger, or interest change, the following must be accomplished.

    1. Set up new records for each parcel. Include the following:
       1. Schedule or parcel number, tax area, abstract classification code(s), name of project or subdivision, building and unit number or the block and lot number.
       2. Name of the current owner and reception numbers.
       3. Create new legal descriptions for the parcels.
       4. Acreage of the lot and number of buildable units, if available.
    2. Determine the actual and assessed values for land and improvements. Remember the values are set as of the property status on the assessment date and cannot be increased or decreased for the year the split or merger is processed. Abstract codes are assigned based on the use of the property on the assessment date. The account should be flagged for review the following January.
       1. If a split or merger occurs before the notice of valuation deadline, the current land and improvement values should be verified with the Appraisal Team.
          Note: This check is suggested because the current actual value as of the assessment date may not be listed on the assessment roll at the time of processing.
       2. If a split or merger occurs after the notice of valuation deadline, the current actual value as of the assessment date is apportioned to the parcels.
       3. This apportionment can be based on acreage, buildable units, or site. The method used should be verified with the Appraisal Team.
       4. If there are improvements on the parcel, use aerial photos or appraiser notes to determine the location of the improvement.
    3. Prepare documents for computer input.

11. Enter the grantee, reception number, and sales information on the ownership records (appraisal records, computer, etc.).

    Priority of deed dates:

    1. Date of delivery; date title passes to the grantee (shown in the signature area of the deed).
    2. Acknowledgment date; date deed signed by grantor and acknowledged by a notary public.
    3. Date made; date deed was prepared.
    4. Recording date; date deed was recorded by the clerk and recorder.

    If the TD-1000 is not filed with the deed, the above list should be used to identify the date the property was transferred. If the TD-1000 is available, it should be reviewed in conjunction with the deed. If the date of closing shown on the TD-1000 is significantly different than the date of delivery or the acknowledgment date shown on the deed, the date of closing should be verified. This review can be performed at the time the transfer is processed or in the sales confirmation process.

    Review the information included on the returned TD-1000 or follow-up confirmation letters. If more information is needed, contact the grantee.

12. When real property is conveyed, any interest the grantor may have in an adjoining vacated street, alley, or other right of way is also conveyed, unless expressly excluded in the deed, § 38-30-104.5, C.R.S.
13. There are instances where a privately owned building is erected or moved onto exempt land. Examples are airplane hangars at a public airport and cabins on land owned by the U. S. Forest Service. In these cases, the building is classified as real property, based on the physical and permanent attachment of the building to the land. The building is conveyed by deed, as the building is real property. A bill of sale is typically used to transfer personal property. Occasionally, a bill of sale may be improperly used to transfer real property; however, this improper use does not necessarily void the conveyance. If the bill of sale contains the essential elements of a deed, it should be interpreted and processed as a deed, conveying the real property (see addendum 3-B). It is possible in real estate law to have a “split fee” in which the ownership of land is separate from ownership of the improvements on the land. In some instances there may be a taxable possessory interest in the land through a ground lease.

Tracking Flags

Many tasks require follow-up and/or tracking by the administrative and appraisal sections of the assessor’s office. Some tasks involve reporting values on the certifications of value and/or the Abstract of Assessment; others require that changes be made to the record at a later time. As such, a flagging system is needed to identify those records.

Addendum 3-A, History of Data Gathering Periods and Assessment Rates

Addendum 3-B, Elements of a Deed

Addendum 3-B, Elements of a Deed

The following elements of a deed are necessary to its validity.

Information Sources: State of Colorado Real Estate Manual, and ARL Volume 2, Administrative and Assessment Procedures

1. Written instrument: To be effective, the deed must be in writing.
2. Parties
   1. A valid deed must clearly name or designate the grantor who is conveying interest in the property. The name of the grantor should be identical to the name that appeared in the conveyance by which the grantor received the title. Information regarding name variances can be found in, § 38-35-116, C.R.S.
   2. A minor discrepancy in the name may not invalidate the deed, but may lead to a legal challenge. A natural person grantor should be of legal age and sound mind, otherwise the grantor might later have the deed set aside and recover the property.
   3. A deed is void if it fails to designate with reasonable certainty the grantee to whom title passes.
   4. Deeds, dated after January 1, 1977, and recorded with the county clerk and recorder, shall include a notation of the legal address of the grantee of the instrument. Any such deed submitted to the county clerk and recorder lacking such address shall not be recorded, § 38-35-109(2), C.R.S.
3. Recital of consideration
   1. A deed is valid without tangible consideration, but should contain at least a recital of consideration (e.g. for $1, or for love and affection). Lack of consideration does not render a gift conveyance void, but may preclude a grantee from enforcing warranty deed covenants against the grantor. If a deed recites consideration, the burden of proving lack of consideration is on the one who challenges the deed.
      Some deeds will recite the actual consideration on the face of the deed. The actual consideration is required on the Real Property Transfer Declaration and Manufactured Home Transfer Declaration prescribed by the Property Tax Administrator per §§ 39-14-102 and 103, C.R.S.
   2. When recording documents conveying title to real property, statute requires payment to the clerk and recorder of a documentary fee. The documentary fee is based on the consideration for the real property and is calculated at one cent per hundred dollars, (sales price × 0.0001) i.e., $59,000 real property sale price × 0.0001 = $5.90 documentary fee, § 39-13-102, C.R.S.
4. Words of conveyance
   1. A deed must contain words that manifest intent to transfer title, or it is ineffective.
   2. Words commonly used include “sell and convey,” “grant, bargain, sell and convey,” “convey and warrant,” or “sell and quit-claim.”
5. Description of the property (Granting clause)
   1. A deed is not valid unless it legally describes the real estate conveyed. Any description that clearly identifies the property is sufficient, but using the same legal description used in previous deeds to the same parcel avoids discrepancies in the records and possible future title litigation.
      A deed normally contains words following the description indicating that all the appurtenances go with the land. All improvements go with the land as appurtenances; e.g., in a deed for a residential property, it is necessary to describe only the land upon which the house is situated.
   2. The law also provides that the street address or identifying numbers on buildings appear on the conveyance document, although failure to include these will not make the deed invalid, § 38-35-122, C.R.S.
6. Delivery and acceptance
   1. To be effective, a deed must be both delivered by the grantor and accepted by the grantee. The delivery of the deed is a question of the intent of the grantor. Presenting the deed to the grantee to afford him an opportunity to examine it does not constitute delivery, § 38-35-101, C.R.S.
   2. According to Colorado statute, when a deed is acknowledged and recorded, it is prima facie evidence of delivery, § 38-35-101(4), C.R.S. Prima facie: “clear on its face” or “sufficient to establish a given fact.” If unexplained, it is sufficient to sustain a judgment in favor of the issue it supports.
   3. For delivery of deed to be effective, it generally must be made during the lifetime of the grantor.
7. Signed by grantor: Must contain grantor’s original signature. If there is more than one grantor, each must sign the deed

 Following are additional elements of a deed

1. Date: Can prevent question or controversy as to time of delivery of the deed.

   1. Priority of dates:

      1. Date of delivery (shown in the signature area of the deed)
      2. Acknowledgment date
      3. Date the deed was made
      4. Recording date

      If the Real Property Transfer Declaration (TD-1000) is not filed with the deed, the above list should be utilized to identify the date the property was transferred. If the TD-1000 is available, it should be reviewed in conjunction with the deed. If the date of closing shown on the TD-1000 is significantly different than the date of delivery or the acknowledgment date shown on the deed, the date of closing should be verified. This review can be performed at the time the transfer is processed or in the sales confirmation process.

2. Exceptions and restrictions (habendum clause)
   1. A grantor is assumed to convey property free and clear of encumbrances except as specifically mentioned in the deed.
   2. A grantor may restrict the grantee’s rights to use the real estate conveyed, as long as such restrictions are reasonable and not contrary to public policy. The use of such deed restrictions is an old practice derived from the bundle of property rights. Once deed restrictions are established, they run with the land, limiting its use by all future grantees. Typical restrictions deal with minimum size of the house, type of building or roofing materials, or exclusion of commercial establishments. Deed restrictions must be enforced through court action brought by any party for whose benefit the restrictions were imposed.
3. Warranties and covenants: A grantor may convey interest by a quitclaim deed, giving no warranty of any kind, or by a general warranty deed, wherein the grantor makes numerous warrants to the grantee. Statute specifies a short-form warranty deed whereby every deed that is similar to the statutory form, and which includes the words “and warrant the title to the property,” automatically implies the usual general warranty deed covenants, § 38-30-113, C.R.S.
4. Acknowledgment of grantor’s signature, §§ 38-35-101, 38-35-104, and 38-35-106, C.R.S.:
   1. An acknowledgment is a declaration made by a grantor to a notary public, or other authorized official, that the execution of the instrument was a free and voluntary act.
   2. A deed is valid and may be recorded without being notarized. An acknowledged deed may be evidence should a title controversy arise. An unacknowledged or defectively acknowledged deed that has remained of record for 10 years is considered properly acknowledged, § 38-35-106, C.R.S.
5. Recording of document
   1. A deed is valid even though not recorded. The wording of the Colorado recording statute is permissible (“may be”) rather than mandatory (“shall be”).
      An exception to this, § 38-35-109, C.R.S., instructs that instruments conveying the title of real property to the state or a political subdivision must be recorded within 30 days of the conveyance pursuant to § 38-35-109.5, C.R.S.
   2. Recording protects an innocent purchaser and/or encumbrancer from acting in ignorance of an unrecorded instrument, and gives constructive notice, a legally conclusive presumption that all persons have knowledge of recorded instruments. Lack of acknowledgment does not invalidate constructive notice. A recorded deed that is not acknowledged still serves notice to subsequent purchasers, § 38-35-106, C.R.S.
      Since Colorado is a “race to the courthouse” state, recording an ownership transaction is very important.
   3. All deeds dated after January 1, 1977, and recorded with the county clerk and recorder, shall include a notation of the legal address of the grantee of the instrument, including road or street addresses if applicable. Any such deed submitted to the county clerk and recorder lacking such address shall not be recorded and shall be returned to the person requesting the recordation. Acceptance of a deed by the county clerk and recorder in violation of this shall not make such a deed invalid, § 38-35-109(2), C.R.S.
   4. All documents received for recording or filing in the clerk and recorder’s office must contain a top margin of at least one inch and a left, right, and bottom margin of at least one-half of an inch. The clerk and recorder may refuse to record or file any document that does not conform to these requirements. The requirement for the top margin does not apply to documents using forms where spacing is provided for recording or filing information at the top of the document, § 30-10-406, C.R.S.