Notice
A property owner must be sent a Notice of Valuation (NOV) every year regardless of whether or not the value has changed, § 20(8)(c), art. X, COLO. CONST. Statute requires that a protest form accompany the NOV, §§ 39-5-121(1) and (1.5), C.R.S. The notice must be mailed no later than May 1. In an intervening year (even-numbered years), the assessor may include the NOV with the tax bill, provided the notice meets the criteria set forth in § 39-5-121(1.2), C.R.S. With the passage of HB 10-1117, a taxpayer may also request the Notices of Valuation by electronic transmission, § 39-5-121(1.7), C.R.S. The required language for the NOV is identified in Chapter 9, Form Standards.
Taxpayer’s Responsibilities
Filing a Protest
If a taxpayer disagrees with the value assigned by the assessor, the taxpayer may file a protest during the statutory protest period. Real property protests must be postmarked or taxpayers must appear in person to protest no later than June 8, § 39-5-121(1)(a), C.R.S. Personal property protests must be postmarked or physically delivered no later than June 30. A protest form is included with the Notice of Valuation; however, it is not mandatory that the taxpayer use this form, or any other particular form, when protesting.
All Colorado counties have an option to elect to alter the protest process for real and personal property by expanding the assessor’s time to answer protests from the last regular working day in June to August 15. Section 39-5-122.7(4), C.R.S., requires counties with a population greater than 300,000 to use the alternate protest procedures during biennial reappraisal years. For counties with a population of 300,000 or less, or in the intervening year for all counties, the alternate protest process must be requested by the assessor and approved by the board of county commissioners, who shall notify the Board of Assessment Appeals (BAA) and district court, § 39-5-122.7(1), C.R.S.
If the protested property is rent producing commercial real property, and the county has elected to follow the alternate appeals process, the taxpayer shall submit to the assessor no later than July 15 the following information:
Two full years including the base year for the relevant property tax year:
- actual annual rental income
- tenant reimbursements
- itemized expenses
- rent roll data as of the valuation date, including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space; for two years including the year of valuation date and the prior year.
A taxpayer may protest the total value of the property, not individual components. See H.R. Cherne et al. v. Boulder County Board of Equalization, 885 P.2d 258 (Colo. App. 1994).
Filing Requirements
The United States Postal Service is the primary means of delivery of most documents. As such, the postmark is the qualifier as to whether the document has been considered timely filed with the assessor. The law provides that the document is considered to be received on the date it is postmarked, §§ 39-1-120(1) and (2), C.R.S.
If either the form initiating a protest or a written objection to the valuation of property is hand-delivered, the assessor must date stamp the protest because the protest will be presumed to be timely filed unless the assessor can present evidence to show otherwise, § 39-5-122(2), C.R.S.
Any taxpayer filing deadline that falls on a Saturday, Sunday, or legal holiday, shall be deemed to be timely filed if filed on the next business day, § 39-1-120(3), C.R.S.
Standing
Property owners are the parties given statutory authority to protest an assessor’s valuation or classification of their property. However, an owner may expressly designate others to pursue a property tax appeal on their behalf. Protests may be filed by an agent of a property owner when the agent has proper authority from the owner to represent the owner in their protest. The Division recommends that assessors require written authorization of agency from persons who are not the owner of record but are filing a protest on behalf of the owner. The title of the document containing this express authority is not important. Regardless of agency authority granted to others, the owner remains liable for payment of the property taxes. Legal considerations associated with agency and assignment differ. For questions concerning this difference or other issues, it is recommended that the assessor consult with the county attorney.
Assessor’s Responsibilities
After the passage of the 1982 Amendment One to the Colorado Constitution, there were many complaints to legislators regarding the treatment that taxpayers were receiving in their county offices. In the 1988 Legislative Session the following legislating declaration regarding taxpayer rights was passed into law:
Legislative declaration – taxpayer rights.
The general assembly hereby finds and declares that section 3 of article X of the state constitution was approved in 1982 by the voters of Colorado in order to ensure the fair and uniform valuation for assessment of real and personal property located in Colorado; that, since the adoption of said constitutional amendment, the property tax system in Colorado has developed into an impersonal system which is more concerned with the mechanisms to levy and collect such tax than with the fair and courteous treatment of the owners of real and personal property who pay such tax; that the purpose of the property tax system is to raise revenues to be used for purposes which benefit the citizens of Colorado, including such property owners; that property owners accept their civic responsibility to pay their fair share of taxes to be used for such purposes; that all levels of government involved in the property tax system should recognize that they exist to serve their citizens; and that the owners of real and personal property should be accorded the respect and courtesy which they deserve and should be provided such services which are necessary to assist them in complying with the property tax laws of this state.
§ 39-1-101.5, C.R.S.
This is a strong mandate that the county officials not adopt policies and procedures that impede the property owners’ access to their due process, or discourage them from exercising their full rights as granted by the Colorado Constitution. Further, that the property owners should be treated with respect and courtesy and assisted in every way possible to comply with the property tax laws of the state. This includes:
- providing accurate information and clear instructions on filing all levels of protests and appeals;
- providing sufficient notice for all hearings and proceedings;
- making no distinction between property owners who live within the county and those who do not; and
- making no distinction between property owners who represent themselves versus those who choose to engage an attorney or an agent.
All personal inquiries and letters received by the assessor regarding property valuations during the protest period are logged and date stamped because all protests are considered timely filed unless the assessor can show evidence to the contrary, § 39-5-122(2), C.R.S. As a part of good office policy, the assessor should consider logging telephone calls and filing a copy of the telephone contact in the property record file. Inquiries that require follow-up but are not considered by the assessor to be formal protests, should be answered by letter. Inquiries considered to be formal protests must be answered with a Notice of Determination, § 39-5-122(2), C.R.S. These procedures will help alleviate future questions regarding the nature and content of the conversation with the taxpayer.
The assessor should establish office procedures regarding facsimile correspondence and on-line filings. The Division recommends that the assessor consult the county attorney or district attorney on this issue. Each assessor needs to provide staff with written guidelines as to how to handle these types of protests.
Within seven working days, at the written request of the taxpayer, the assessor must make available the data used to determine the actual value of the taxpayer’s property, § 39-5-121.5, C.R.S.
The assessor must send two copies of the Notice of Determination form to the person presenting the objection on or before the last regular working day in June for real property or by July 10 for personal property, § 39-5-122(2), C.R.S.
For those counties using the alternate protest process, the assessor has until August 15 to mail Notices of Determination for both real and personal property.
In each determination, the assessor includes the reason(s) for denial and information regarding the taxpayer’s right of appeal to the county board of equalization, § 39-8-106, C.R.S. The presumption of correctness of the assessor’s values, as has existed in the past, was eliminated by § 20, art. X, COLO. CONST. As such, assessors must be prepared to provide sound evidence in all appeal hearings. Likewise, the taxpayer’s burden of proof requires a taxpayer to demonstrate that an assessment is incorrect, Board of Assessment Appeals v. Sampson, 105 P.3d 198 (Colo. 2005). Additional statutory requirements for information to be included in the Notice of Determination can be found in Chapter 9, Form Standards.
The assessor shall correct erroneous or improper valuations, § 39-5-122(2), C.R.S. When a protest is filed, adjustments that raise or lower the valuation may be made during protest period. By filing a protest, the taxpayer opens the door to all corrections, San Miguel County Board of Equalization et al. v. Telluride, 947 P.2d 1381 (Colo. 1997). The taxpayer, as a matter of due process, always has the right to continue the appeal process until remedies are exhausted.
Due Process
If the assessor fails or refuses to hear a protester, the taxpayer may appeal directly to the county board of equalization, § 39-8-106(3), C.R.S.
County Board of Equalization
In every county except the City and County of Denver and the City and County of Broomfield, the board of county commissioners sits as the county board of equalization (county board) from July 1 until August 5 each year until all hearings are concluded and decisions rendered, § 39-8-107(2), C.R.S. Counties have the option of using an alternate protest period. When the alternate protest period is used, the county board sits from September 1 until November 1, §§ 39-8-104(2) and 107(2), C.R.S.
The county board also hears individual taxpayers’ appeals of the assessor’s decisions. In order for the taxpayers to preserve their right of appeal, the appeal must be postmarked or delivered on or before July 15 for real property, and July 20 for personal property. The deadline for counties using the alternate protest period is September 15 for real and personal property, § 39-8-106(1)(a), C.R.S. If a taxpayer deadline falls on a Saturday, Sunday, or legal holiday, the document shall be deemed to have been timely filed if filed or postmarked on the next business day, § 39-1-120(3), C.R.S.
In addition, the county board reviews the valuations for assessment of all taxable property appearing in the assessment roll of the county, directing the assessor to supply any omissions which may come to its attention. Section 39-8-102(1), C.R.S., also directs the county board to correct any errors made by the assessor. Whenever appropriate, the board is allowed to raise, lower, or adjust any valuation for assessment appearing in the assessment roll to ensure that all valuations for assessment of property are just and equalized within the county.
If the county board determines that an adjustment is warranted, the county board issues a resolution to effect the change and a county board of equalization decision letter is mailed to the taxpayer explaining the reason for the adjustment and the taxpayer’s appeal rights. If errors are discovered by the assessor during the county board’s appeal period that impact the valuation of a class or subclass of property, the assessor shall recommend an adjustment to correct the error.
When circumstances arise that may require the county board to sit outside the statutory timeframe, the Division recommends that the commissioners discuss the situation with the county attorney and review Wenner v. Board of Assessment Appeals, 866 P.2d 172 (Colo. 1993).
At a meeting of the county board of equalization on or before each September 15 in a county using the alternate protest period pursuant to section § 39-5-122.7(1) and (4),C.R.S., or on or before each July 15 in all other counties, the assessor reports the valuation for assessment of all taxable real property in the county, submits a list of all persons who have protested valuations of real property, and reports the assessor’s action in each case, § 39-8-105(1), C.R.S.
At the meeting of the county board described above, the assessor reports the valuation of all taxable personal property in the county. The report includes the valuation for assessment of all portable or movable equipment which has been apportioned to the county pursuant to § 39-5-113, C.R.S. The assessor submits a listing of those persons in the county who have failed to return any declaration schedules and the action for each case. The assessor also submits a list of all persons who have protested valuations of personal property and the action taken, § 39-8-105(2), C.R.S.
The taxpayer may appear before the county board in person or may be represented by an authorized representative. If desired, the taxpayer may choose not to be present and simply provide written documentation to the county board, Isbill Associates Inc. v. Jefferson County Board of County Commissioners, 894 P.2d 52 (Colo. App. 1995). The assessor, or a representative of the assessor, must be present at the hearing and present evidence to support the basis and amount of the valuation, § 39-8-107(1), C.R.S.
At the written request of any taxpayer or taxpayer’s agent, the assessor must make available the data used in determining the actual value of any property owned by the taxpayer within three (3) working days following the written request. Upon receiving the request, the assessor must immediately advise the taxpayer or agent of the estimated cost of providing the data. The intent of the statute is that the assessor immediately estimates the cost because payment must be sent to the assessor prior to providing the data. Once the data is gathered, the assessor can choose whether the data is mailed, faxed, or sent by electronic transmission to the taxpayer or agent. No transmission fee may be charged for records sent via electronic mail. If the estimated cost was lower than actual costs, the assessor may include a bill with the data for any reasonable cost above the estimated cost subject to the statutory maximum. The additional costs are due and payable upon receipt of the data, § 39-8-107(3), C.R.S.
Section 24-72-205, C.R.S., was amended in 2014 with the addition of paragraph (6), which delineates how the charges may be calculated; a custodian may now impose a fee when responding to a request for the research and retrieval of public records if they have a written policy in place regarding charges. The policy must have been published or made available on the custodian’s website prior to receiving the request for information.
The statute does not allow the custodian to charge for the first hour of time expended in connection with the research and retrieval of public records. However, after the first hour, the custodian may charge a fee for the research and retrieval of public records. The fee may not exceed thirty-three dollars and fifty-eight cents per hour. This hourly rate will remain in effect until July 1, 2024, when the Director of Research of the Legislative Council adjusts the maximum hourly fee. This adjustment will occur every five years in accordance with the percentage change over the period in the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for Denver-Aurora-Lakewood, all items, all urban consumers, or its successor index, § 24-72-205(6), C.R.S.
The assessor is to produce information, including the primary method and rates used to support the basis and amount of the assigned value. The assessor may not rely on any confidential data during the hearing which is not available for review by the taxpayer, unless the data is presented in such a manner that the source cannot be identified, § 39-8-107(3) and (4), C.R.S. The county board is required to consider all testimony and exhibits, § 39-8-107(1), C.R.S.
The county board shall grant or deny the petition, in whole or in part, and shall notify the petitioner in writing within five (5) business days of the decision, § 39-8-107(2), C.R.S., and Tri-Havana Limited Liability Company v. Arapahoe County Board of Equalization, 961 P.2d 604 (Colo. App. 1998). County boards of equalization may send decisions via fax, email to a phone number, or email to an electronic address if a person or an agent requests such notification, § 39-8-107(2)(b), C.R.S. The county board should also notify the county assessor of its decisions in order to ensure that appropriate adjustments are made to the Abstract of Assessment pursuant to § 39-5-123(1)(a), C.R.S. The county board must conclude its hearings and render all decisions by August 5. The county board decisions must be rendered no later than November 1 for counties that use the alternate protest process, § 39-8-107(2), C.R.S.
If any hearing on appeal is heard by a referee, at the written request of any taxpayer or taxpayer’s agent, the county board must make available the referee’s findings and recommendations within seven (7) working days following the written request. Upon receiving the request, the county board must immediately advise the taxpayer or agent of the estimated cost of providing the recommendations. The intent of the statute is that the county board immediately estimates the cost because payment must be sent to the county board prior to providing the data. Once the data is gathered, the county board can choose whether the data is mailed, faxed, or sent by electronic transmission to the taxpayer or agent. If the estimated cost was lower than actual costs, the county board may include a bill with the data for any reasonable cost above the estimated cost subject to the statutory maximum. The additional costs are due and payable upon receipt of the data, § 39-8-107(1), C.R.S.
BAA, District Court, Binding Arbitration
BAA and District Court
The decision of the county board must include language that the petitioner has the right to appeal the county board’s decision within thirty (30) days from the date of the decision to the Board of Assessment Appeals or district court, or to submit the case to binding arbitration, §§ 39-8-107(1) and 108(1), C.R.S. House Bill 21-1083 allows the board of assessment appeals, or district court, or the arbitrator to determine a value, based on the evidence presented, that is higher than the value determined by the county board of equalization. If the petitioner requests binding arbitration, the decision reached by the arbitrator shall be final and not subject to review, § 39-8-108(4), C.R.S. Two (2) working days prior to any hearing, the assessor, upon request, is required to make available to the taxpayer data supporting the assigned property valuation, § 39-8-108(5)(d), C.R.S.
Such request must be accompanied by the data supporting the taxpayer’s valuation. This disclosure does not prohibit the introduction of additional data at the hearing discovered as a result of the exchange of the information, § 39-8-108(5)(d), C.R.S.
If the assessor or the county board fails to respond within the time provided by statute, the taxpayer may file directly with the BAA, § 39-2-125(1)(e), C.R.S.
Appeals to district court and the BAA are de novo hearings; in other words, the taxpayer and the county may present new evidence. Evidence submitted originally to the county board can be supplemented, §§ 39-8-107(1) and 108(1), C.R.S.
Any petitioner appealing either a valuation of rent-producing commercial real property to the Board of Assessment Appeals pursuant to § 39-8-108(1), C.R.S., or a denial of an abatement of taxes pursuant to § 39-10-114, C.R.S., shall provide rental income, tenant reimbursement, itemized expenses and rent roll data; including the name of any tenants, the address, unit, or suite number of the subject property, lease start and end dates, option terms, base rent, square footage leased, and vacant space to the county board of equalization or the board of county commissioners in the case of an abatement. The information shall be provided to the county board of equalization or the board of county commissioners within ninety (90) days after the appeal with the Board of Assessment Appeals is filed. The information is considered confidential and is not to be sent to the Board of Assessment Appeals, § 39-8-107(5)(a)(I), C.R.S. The county assessor should be aware that if the submitted data is used to establish value, only data prior to the appraisal date can be used. Data subsequent to the appraisal date cannot be used to establish value. A petitioner who has already provided information prior to July 15 to an assessor in a county using the alternate appeals process is not required to provide additional information under this subsection.
Upon request from the petitioner, the assessor, county board of equalization or board of county commissioners shall identify within ninety (90) days of the request the primary method used by the county to determine the value of the subject and the rates used by the county to determine that value under the method identified above, § 39-8-107(5)(b)(I)(A), C.R.S.
The rates identified in this statute include such things as rent rates, vacancy rates, expense rates, and capitalization rates. This list is not exhaustive as there could be other rates associated with any of the three approaches to value that should be identified. The goal of this law is to increase transparency earlier in the process § 39-8-107(5)(b)(I)(B), C.R.S.
Taxpayers filing an appeal in district court can represent themselves, however, they should be made aware that there are costs associated with filing in district court, as well as certain filing requirements, which if not followed could result in the court’s not taking jurisdiction. Guidance to actions brought in district court is located in title 13 – Courts and Court Procedure, C.R.S., and in The Colorado Rules of Civil Procedure for Courts of Record in Colorado. Additionally, information regarding filing information as well as forms can be found on the Colorado Courts website.
If an agent or an attorney files an appeal with the BAA on behalf of the taxpayer, the BAA requires a filing fee in an amount specified in §§ 39-2-125(1)(h) and 39-8-108(1), C.R.S. All fees collected by the BAA shall be transmitted to the state treasurer, who shall credit the same to the Board of Assessment Appeals Cash Fund, § 39-2-125(1)(h), C.R.S. A pro se (self-represented) taxpayer may file up to two appeals in a fiscal year with no filing fee. A pro se taxpayer includes the trustee of a trust that may be represented by an attorney admitted to practice law in this state, by the trustee of the trust, or by the trustee’s designee, §§ 39- 2-125(1.5) and 39- 2-127(4), C.R.S.
The BAA publishes its own rules and the most recent version of the rules is available on BAA’s website. One rule, Rule 11, requires parties to exchange documentation at least 28 calendar days prior to the hearing. The documentation must be in the possession of the petitioner and respondent 28 business days prior to the hearing; therefore, additional time must be allowed for mailing the documents. Rebuttal information is exchanged 21 calendar days prior to hearing. Information and documentation not provided to the other party will generally not be admitted into evidence.
Senate Bill 13-146 changed the written decision format to allow either a full decision or a summary decision. A request for a summary decision must be requested by both parties before the board. If a party is dissatisfied with the summary decision, a written request for a full decision must be received by the board within ten (10) working days after the date on which the summary decision was mailed. A full decision is required to proceed to Court of Appeals, § 39-8-108(2), C.R.S.
NOTE: To date, the BAA has issued only full decisions.
If the board members who conduct the hearing are unable to reach a decision, an additional board member may be added after the hearing to review the evidence and hearing transcript or recording, § 39-2-127(2), C.R.S. Additionally, the BAA may permit, in its discretion and upon prior written application, the intervention of another affected party in a matter pending before the BAA. The intervenor’s participation, however, may be limited by the BAA.
Decisions of the BAA may be appealed to the Court of Appeals within forty-nine (49) days for judicial review. However, the respondent (county) may appeal only when the matter is of statewide concern, the decision results in a significant decrease in county valuation, or when alleged procedural errors or errors of law have occurred. The BAA may or may not grant permission to appeal the issues of statewide concern or a significant decrease in valuation. If the BAA does not grant permission, the county may petition the Court of Appeals for judicial review of such questions. Appeals by the respondent (county) must be made within thirty (30) days of the date of the decision, § 39-8-108(2), C.R.S. Decisions of the district court may be appealed to the Court of Appeals for judicial review within forty-nine (49) days, §§ 24-4-106(9) and 39-8-108(3), C.R.S.
If the appeal is granted (in whole or in part) by the BAA or district court, then the taxpayer need only present a certified copy of the order or judgment to the county assessor. The county assessor presents the order or judgment to the county treasurer, who subsequently refunds the appropriate amount of taxes and delinquent interest to the taxpayer. The refund interest accrues from the date the payment of taxes and delinquent interest was received by the treasurer. Such refund shall be paid to the appellant even if the appellant is not the current owner of the property, § 39-8-109, C.R.S. Effective August 11, 2010, the appellant and the county shall each be responsible for their respective costs in said court or Board of Assessment Appeals, as the case may be, § 39-8-109(1), C.R.S. 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 assessor will capture and report the value and taxes received on the Certification of Valuation form, DLG 57, on the appropriate lines related to omitted property and revenue.
The above proceedings are specified in §§ 39-5-122, and 39-8-101 through 109, C.R.S.
Petitions to the Board of Assessment Appeals, Form BAA-1, can be obtained from:
Board of Assessment Appeals
1313 Sherman Street, Room 315
Denver, CO 80203
Board of Assessment Appeals Website
Phone: 303-864-7710
The Board of Assessment Appeals mails notices of hearing to the county commissioners and petitioners at least thirty (30) days prior to the hearing date.
It is very important that county assessors be aware of such hearing dates. Assessors should arrange with their board of county commissioners and the county attorney to obtain a copy of notices of hearing affecting the county.
Binding Arbitration
Proceedings
The arbitration hearing is held within sixty (60) days from the date the arbitrator was selected, § 39-8-108.5(3)(a), C.R.S. Both the county board and the taxpayer may participate in arbitration, § 39-8-108.5(3)(d), C.R.S. These hearings are informal and may be confidential and closed to the public if there is mutual agreement between the county board and the taxpayer, § 39-8-108.5(3), C.R.S. Typically, the assessor is the expert witness for the county board.
In order to prepare for the hearing, both the taxpayer and assessor gather information to support the valuation of the property, § 39-8-108.5(3), C.R.S. Valuation of like property similarly situated is credible evidence, § 39-8-108(5)(b), C.R.S. Once the taxpayer raises the issue, the assessor should be prepared to explain/prove why the values are different. The value being appealed to arbitration may be a value set by the county board and not the assessor’s value. So, upon request, the county must make the data supporting the assessor’s valuation available within two (2) working days prior to hearing. Each request must include the data supporting the taxpayer’s valuation, § 39-8-108(5)(d), C.R.S.
Please note that the county cannot rely on any confidential data which is not available to the taxpayer. If confidential data is used and made available to the taxpayer, the data must be presented so that the source cannot be identified, § 39-8-108(5)(c), C.R.S.
The arbitrator then considers all information presented by both parties and makes a decision in accordance with applicable Colorado property tax laws, § 39-8-108.5(3), C.R.S. An arbitrator may determine a value, based on the evidence presented, that is higher than the value determined by the county board of equalization.
Arbitrator’s Decision
The arbitrator’s written decision is delivered to both parties personally or by registered mail within ten (10) days of the hearing. The decision is final and not subject to further review, § 39-8-108.5(3)(g), C.R.S.
Arbitrator’s Fee
The arbitrator’s fees and expenses are an amount agreed upon by the taxpayer and the county board, § 39-8-108.5(5)(a) and (b), C.R.S. In the case of residential real property, fees and expenses are not to exceed $150 per case. The arbitrator’s fees and expenses, not including counsel fees, are paid as provided in the decision.
Selection of Arbitrator
The taxpayer requesting binding arbitration and the county board must select an arbitrator within forty-five (45) days after the county board’s decision, or thirty (30) days after the list is available, § 39-8-108.5(2)(a), C.R.S.
Taxpayers’ Rights and Responsibilities
The petitioner may request binding arbitration following the denial of an appeal to the county board of equalization (county board). The arbitrator’s decision is final and not subject to further review, § 39-8-108.5, C.R.S.
In order to pursue arbitration, the taxpayer must notify the county board of the intent to pursue binding arbitration within thirty (30) days of the county board decision and select an arbitrator from the official list of arbitrators prepared by the county board. If the county board and the taxpayer cannot reach an agreement as to the selection of the arbitrator, the district court of the county in which the property is located selects an arbitrator from the list.
County Commissioners’ Responsibilities
List Of Arbitrators
The county commissioners develop a list of persons who are qualified to act as arbitrators of property valuation disputes. The official list of arbitrators is kept in the county clerk and recorder’s office, § 39-8-108.5(1)(a), C.R.S.
Arbitrator’s Qualifications
All arbitrators must be licensed or certified appraisers, § 39-8-108.5(1)(b), C.R.S. In addition to being licensed or certified, they must be experienced in the area of property taxation.
The county commissioners may require any other qualifications that they deem necessary.
The law does not require arbitrators to be residents of the county. They are also not prohibited from serving as arbitrators in more than one county. If, however, a person has represented a taxpayer in a protest, appeal, or abatement/refund action in the same tax year in the county where such property is located, he cannot be an arbitrator, § 39-8-108.5(1)(c), C.R.S.
Assessment Appeal Procedures Flowchart
Not later than May 1
Assessor must send valuation notice and protest form to real property taxpayers. Upon taxpayer’s request, the NOV may be transmitted electronically, §§ 39-5-121(1) and (1.7), C.R.S.
First working day after NOVs are mailed or e-mailed
Assessor begins to hear real property protests,
§ 39-5-122(1), C.R.S.
By June 8
Taxpayers must file real property protests via the U.S. mail or in person,
§§ 39-5-121(1) and 122(1), (2), C.R.S.
June 8
Assessor concludes real property protest hearings,
§§ 39-5-122(1) and (4), C.R.S.
Not later than June 15
Assessor must send valuation notice and protest form to owners of personal property, apportioned movable equipment, drilling rigs, oil and gas leaseholds and lands, and producing and nonproducing mines. Upon taxpayer’s request, the NOV may be transmitted electronically, §§ 39-5-113.3(2) and 121(1.5) and (1.7), 39-6-111.5, and 39-7-102.5, C.R.S.
Beginning on June 15
Assessor begins to hear personal property protests, §§ 39-5-122(1), 39-6-111.5, and 39-7-102.5, C.R.S.
Last working day in June
Assessor must notify real property taxpayers of determination, § 39-5-122(2), C.R.S. (Except for counties using the alternate appeal process – August 15.)
Not later than June 30
Taxpayer must physically deliver or mail personal property protest, §§ 39-5-121(1.5) and 122, C.R.S. (Except for counties using the alternate appeal process.)
July 1
County board of equalization begins to hear real and personal property appeals, § 39-8-104(1), C.R.S. (Except for counties using the alternate appeal process.)
July 5
Assessor concludes personal property protest hearings, § 39-5-122(4), C.R.S.
July 10
Assessor must notify personal property taxpayers of determination, § 39-5-122(2), C.R.S. (Except for counties using the alternate appeal process.)
On or before July 15
Real property taxpayers must file appeals to county board of equalization, §§ 39-5-122(3), 39-8-101 and 106(1)(a), C.R.S. (Except for counties using the alternate appeal process.)
On or before July 20
Personal property taxpayers must file appeals to county board of equalization, § 39-8-106(1)(a), C.R.S.
August 5
County board of equalization must conclude all hearings and render all decisions. Decisions are mailed to taxpayers within five (5) business days of the date the decision was made. County boards of equalization may send decisions via fax, electronic mail to a phone number, or email to an electronic address if a person or an agent requests such notification, § 39-8-107(2), C.R.S. (Except for counties using the alternate appeal process.)
August 15
If alternate protest process is chosen, assessor must notify real and personal property taxpayers of determination, § 39-5-122(2), C.R.S.
September 1
If alternate protest process is chosen, county board of equalization begins to hear real and personal property appeals, § 39-8-104(2), C.R.S.
On or before September 15
If alternate protest process is chosen, real and personal property taxpayers must file appeals to county board of equalization, §§ 39-5-122(3), and 39-8-106(1)(a), C.R.S.
November 1
If the alternate protest process is chosen, county board of equalization must conclude all hearings and render all decisions. Decisions are mailed to taxpayers within five (5) business days of the date the decision was made. County boards of equalization may send decisions via fax, electronic mail to a phone number, or email to an electronic address if a person or an agent requests such notification, § 39-8-107(2), C.R.S.
Within thirty (30) days of denial
Taxpayer may file appeal with Board of Assessment Appeals or district court, or request binding arbitration within thirty (30) days of the mailing of the county board’s written decision, § 39-8-108(1), C.R.S.
Within ninety (90) days of denial
Any petitioner appealing rent-producing commercial real property to the Board of Assessment Appeals must provide rental income, tenant reimbursement, etc., to the county board of equalization or board of county commissioners within ninety (90) days after the appeal is filed, § 39-8-107(5)(a)(I), C.R.S.
Within forty-nine (49) days of denial
Taxpayer may file appeal with Court of Appeals within forty-nine (49) days after Board of Assessment Appeals or district court decision, § 39-8-108(2), C.R.S. Respondent may appeal under certain circumstances, § 39-8-108(2), C.R.S.
Court of Appeals hears appeals when calendar permits, § 24-4-106(11), C.R.S.
Either party may appeal decision to the Colorado Supreme Court.
Correction of Errors
Prior to the delivery of the tax warrant, it is the duty of the assessor to correct any errors or omissions found on the assessment roll, § 39-5-125, C.R.S. Errors found prior to the mailing of NOVs can be corrected by the assessor. Errors discovered after NOVs have been mailed or electronically transmitted can be corrected by the assessor if the taxpayer protests, or by the county board whether or not the taxpayer files a protest, San Miguel County Board of Equalization et al. v. Telluride, 947 P.2d 1381 (Colo. 1997). Case law, specifically Athmar Park v. Denver, 151 Colo. 424, 378 P.2d 638 (Colo. 1963) and Yen LLC, v. Jefferson, 2021COA107, precludes the assessor from adjusting valuations for prior assessment years. In Athmar Park v. Denver, the court stated, “Every time an assessor finds that a new adjustment in value is indicated it is neither realistic nor required to say that taxes for prior years, even if paid under protest, must be refunded when no action was brought as required by C.R.S., ‘53, 137-3-38, otherwise there could be no certainty in tax revenues to operate the government. By the same token it would be as untenable to urge that a prior year’s tax should be increased due to a later increase in valuation.”
Many county attorneys believe that once the county board hearings have concluded, no value changes can be made to the assessment roll. Other county attorneys feel that corrections lowering the value can be made by the assessor prior to the delivery of the tax roll to the treasurer. If a taxpayer should bring a correction to the assessor’s attention after values have been finalized by the county board, the assessor should consult the county attorney for an opinion. If the county attorney agrees that the correction should be made, and the taxpayer and the assessor agree to a corrected value, then the value should be corrected. If, however, the taxpayer and the assessor disagree on the proper valuation of the property, the taxpayer should file an abatement petition after the tax warrant is published.
Omitted property can be added to the tax roll at any time upon discovery. A Special Notice of Valuation must be mailed to the taxpayer allowing the taxpayer the opportunity to protest the new valuation of the property. If the taxpayer disagrees with the valuation, an abatement may be filed. The abatement should be treated like a protest; in other words, approval is not automatic. Both the taxpayer and the assessor need to present evidence to the board of county commissioners regarding the correct valuation of the property. For additional information on omitted property, refer to Chapter 3, Specific Assessment Procedures.
Abatement/Refund Process
The abatement process enables taxpayers to object to the property taxes billed by a county, and its use is required to change tax amounts after the tax warrant is delivered to the treasurer, § 39-10-114, C.R.S. A property owner or the owner’s agent files an abatement petition with the county to officially request either an abatement of taxes due or a refund of taxes paid. The term “abatement” is frequently used to refer to either abatement or refund because the abatement petition is used under both circumstances. Abatement petitions are available at county assessors’ offices, county treasurers’ offices, or abatement petitions can be downloaded from the Division of Property Taxation’s website.
Definitions
A refund is given to the taxpayer when the tax has already been paid to the treasurer. The refund amount may include statutory interest, § 39-10-114(1)(b), C.R.S. An abatement of tax is a cancellation or reduction in the amount of tax owed by the taxpayer. In some cases, the taxpayer may owe penalty interest on the amount outstanding, § 39-10-104.5(9), C.R.S.
Due Process
The U.S. Constitution and the Colorado Constitution guarantee that no person shall be deprived of life, liberty, or property without “due process.” Due process means the notice of and opportunity to challenge the legality of an action. The abatement process is considered to be a part of due process.
Through the abatement process, a taxpayer has an opportunity to challenge the validity of an assessment as established by the county assessor. A taxpayer may take the issue as far as the Colorado Supreme Court, if so desired. It should be noted that while it is the taxpayer’s right to file an abatement, approval is not automatic. The taxpayer should be prepared to present evidence that the value or tax is incorrect. In cases of overvaluation, abatement action is barred if a protest was filed and the assessor mailed a notice of determination for the assessment year for which abatement is sought, § 39-10-114(1)(a)(I)(D), C.R.S. A statutory exception to the overvaluation rule exists for personal property that is undergoing an audit by the assessor, § 39-10-114(1)(a)(I)(D), C.R.S.
Colorado Case Law Concerning Abatements
Thibodeau v. Denver County Board of Commissioners, 2018 COA 124 428 P.3d 706 . The Court of Appeals ruled that assessors have the authority to revalue properties in an intervening year under three circumstances: “(1) to correct a clerical error or supply a clerical omission; (2) to adjust for an unusual condition; or (3) to correct an incorrect value.”
Lowe Denver Hotel v. Arapahoe County Board of Equalization, 890 P.2d 257 (Colo. App. 1995). The Court of Appeals ruled that an adjudicated value in the first year of a reassessment cycle must carry forward as the valuation in the second year of that cycle. The court clarified that assessors may make “corrective” intervening year revaluation only when the assessor’s original base period valuation for the first year of reassessment cycle is subsequently asserted to be incorrect, and therefore, in need of correction.
Cherry Hills Country Club v. Arapahoe County Board of Commissioners, 832 P.2d 1105 (Colo. App. 1992). If property value is reduced through the appeal process in the intervening year, that value also applies to the first year even if the value was protested and adjusted.
Wyler/Pebble Creek Ranch v. Board of Assessment Appeals, 883 P.2d 597 (Colo. App. 1994). The Court of Appeals denied an abatement on the grounds that reclassification from agricultural to vacant residential land was overvaluation and because the petitioner had availed himself of the protest procedure based upon overvaluation. This case defines reclassification from agriculture to residential land to be an issue of overvaluation.
5050 S. Broadway Corporation v. Arapahoe County Board of Commissioners, 815 P.2d 966 (Colo. App. 1991). This case defines clerical errors that include “transcription mistakes, errors of law, mistakes appearing on the face of the record, and other defects or omissions in record.” Clerical errors do not encompass mistakes of assessors who make factual errors in valuing property.
Woodmoor Improvement Association v. Property Tax Administrator, 895 P.2d 1087 (Colo. App. 1994). The petitioner requested an abatement for the previous six years citing the taxes were illegal and erroneous. The court held that the two-year time limitation found in § 39-10-114(1)(a)(I)(A), C.R.S., was binding.
Landmark Petroleum, Inc. v. Mesa County Board of Commissioners, 870 P.2d 610 (Colo. App. 1993). An arbitrator’s decision was enforced through the abatement procedure because the arbitrator made a clerical error.
South Suburban Park and Recreation District v. Board of Assessment Appeals, 894 P.2d 771 (Colo. App. 1994). Due to lack of notice of taxes due and reclassification of the property, the two-year abatement limit was waived.
Property Tax Adjustment Specialists, Inc. v. Mesa County Board of Commissioners, 956 P.2d 1277 (Colo. App. 1998). Property was valued as a state assessed company for 13 years before it was discovered that it should have been exempt. No procedures were violated and taxpayer was given proper notice; therefore, relief was given only for two years.
Bea Kay Real Estate Corp. v. Aragon (Huerfano County Assessor), 782 P.2d 837 (Colo. App. 1989). When the Notice of Valuation is not sent by the statutory deadline, the taxpayer has the abatement remedy.
Huerfano County Board of Commissioners v. Atlantic Richfield Company, 976 P.2d 893 (Colo. App. 1999) . The board of county commissioners does not have the ability to appeal the Property Tax Administrator’s decision on an abatement petition.
Boulder Country Club v. Boulder County Board of Commissioners, 97 P.3d 119 (Colo. App. 2003). The case dealt with a matter of law. The court determined the valuation for 1999 and 2000 must be the same. No unusual conditions existed that would have allowed the property to be reappraised for the intervening year.
Red Junction LLC v. Mesa County Board of Commissioners, 174 P.3d 841 (Colo. App. 2007). The court determined that multiple abatement petitions are not permissible for the same property for the same tax year.
Boulder County Board of Commissioners; and JoAnn Groff, Colorado Property Tax Administrator, and Board of Assessment Appeals v. HealthSouth Corporation, 246 P.3d 948 (Colo. 2011). HealthSouth Corporation filed two abatement petitions with Boulder County for reduction in the valuation of personal property for refund of taxes for property tax year 2002 stemming from the self-reporting of fictitious assets in an effort to support a fraudulent scheme of inflating earnings to meet expectations set by Wall Street analysts. Both the Boulder board of county commissioners and the Board of Assessment Appeals denied HealthSouth’s petition for abatement. The Court of Appeals, then reversed the Board of Assessment Appeal’s decision and ordered a refund. The Colorado Supreme Court reversed the Court of Appeals’ decision and held that section 39-10-114, C.R.S., (2010) does not contain a provision for abatement or refund of property taxes paid by a taxpayer based on self-reporting of personal property it knows does not exist.
The Abatement Process
Abatement petitions must be filed within two years after January 1 of the year following the year in which the taxes were levied, § 39-10-114(1)(a)(I)(A), C.R.S. Case law provides that the taxpayer has until the first working day of the January following the two-year deadline, Golden Aluminum Company v. Weld County Board of Commissioners, 867 P.2d 190 (Colo. App. 1993). For instance, a taxpayer has until the first working day in January 2023, to file an abatement petition for assessment year 2020. A United States postmark constitutes filing as provided in Leprino v. Huddleston (Property Tax Administrator), 902 P.2d 962 (Colo. App. 1995).
The county commissioners conduct a hearing on the taxpayer’s petition or appoint independent referees to conduct the hearing on his/her behalf. The referee submits a recommendation to the commissioners for the commissioners’ final decision. The assessor has the opportunity to be present, § 39-1-113(1), C.R.S. The taxpayer must also be notified of the hearing, §§ 39-1-113(1) and (5), C.R.S. In some counties, the board of county commissioners has authorized the assessor, through a formal resolution, to settle abatements or refunds of $10,000 or less in tax without the necessity of holding a hearing. The settlement must be by written, mutual agreement, § 39-1-113(1.5), C.R.S. The county commissioners, or the assessor if appropriate, must act upon the petition within six (6) months of the date the petition was filed with the county, § 39-1-113(1.7), C.R.S.
If the petition is approved by the county commissioners, or settled by the assessor, and the amount of tax involved is $10,000 or less per year, per schedule, the abatement petition remains in the county for processing by the county treasurer.
If the county commissioners approve the petition and the tax amount is more than $10,000 per schedule, per year, the petition is forwarded to the Administrator for review, §§ 39-1-113(3) and 39-2-116, C.R.S. The review ensures that the approval of the petition is in conformity with statutes and case law. The Administrator may approve the petition and return it to the county for processing, or the petition may be denied in whole or in part.
If the county commissioners deny the abatement in whole or in part, the commissioners notify the taxpayer of the denial in writing and provide information on the right to appeal to the BAA within thirty (30) days of the date of the decision, § 39-2-125(1)(f), C.R.S. Any petitioner appealing the denial of abatement of taxes regarding rent-producing commercial real property, must provide rental income, tenant reimbursement, etc., to the board of county commissioners within ninety (90) days after the appeal with the Board of Assessment Appeals is filed, § 39-8-107(5)(a)(I), C.R.S. If the Administrator denies the abatement in whole or in part, the Administrator notifies the taxpayer of the denial in writing and provides information on the right to appeal to the BAA within thirty (30) days of the date of the decision, §§ 39-2-125(1)(b)(I) and (1)(f), and 39-10-114.5(1), C.R.S. If the taxpayer disagrees with the decision rendered by the BAA, the decision may be appealed to the Court of Appeals, and the Court of Appeals’ decision may be appealed to the Colorado Supreme Court, § 39-10-114.5(2), C.R.S.
Need for Abatements
The abatement process begins after the tax roll is printed. The process corrects illegal or erroneous value or tax.
Illegal and erroneous assessments or taxes are defined in statute as, “erroneous valuation for assessment, irregularity in levying, clerical error, or overvaluation,” § 39-10-114(1)(a)(I)(A), C.R.S. “Overvaluation” is defined as valuation adjustments that require judgment. Factors that can contribute to overvaluation include effective age of a property, quality, condition, depreciation, or economic obsolescence.
Taxpayers may file abatement petitions requesting a value adjustment for years in which a protest was filed. However, in cases involving “overvaluation,” the abatement should be denied if the taxpayer filed a protest with the assessor for the same property tax year and the assessor mailed a notice of determination.
The Notice of Determination provides the property owner with the assessor’s decision on the protest, § 39-10-114(1)(a)(I)(D), C.R.S.
It is not necessary to process abatement petitions on properties that the Division grants exemption due to religious, charitable, or private school uses. The notice from the Administrator granting exemption is sufficient for the treasurer to process an abatement or refund.
Standing
Abatements filed by individuals other than the owner must have specific authority in either a letter of agency or in the lease agreement. Abatement petitions filed for any reason may be considered only for assessment years in which the taxpayer owned the property. When a taxpayer takes ownership during an assessment year, the new owner of record has standing to file an abatement petition. If the former owner filed a protest for the assessment year in question, the new owner has no standing to file an overvaluation petition, Yale Investments, Inc. v. Property Tax Administrator, 897 P.2d 890 (Colo. App. 1995). If, however, a protest was not filed, then the new owner may challenge the value, even though the new owner may have held title for only part of the assessment year, Utah Motel Assoc. v. Denver County Board of Commissioners, 844 P.2d 1290 (Colo. App. 1992).
Division policy is to allow the foreclosing party to have standing to file an abatement petition when the foreclosing party paid back taxes. However, in cases where a protest was filed based on overvaluation and the assessor mailed a Notice of Determination, the abatement should be denied, § 39-10-114,(1)(a)(I)(D), C.R.S. See Yale Investments, Inc. v. Property Tax Administrator, 897 P.2d 890 (Colo. App. 1995).
Tax lien certificate holders do not have standing to file an abatement petition prior to the county treasurer’s issuing a treasurer’s deed, Hughey v. Jefferson County Board of Commissioners, 921 P.2d 76 (Colo. App. 1996).
Prior owners sometimes give new property owners “abatement rights.” The written “assignment of abatement rights” allows the new owner to file for an abatement for prior years’ taxes and keep the refund. When the situation occurs, the assessor should consult the county attorney before approving or denying the abatement.
The Division recommends that assessors establish policies for processing abatement petitions. These policies should include procedures for deciding when a petition is properly filed and when a petition is considered timely filed. Most questions seem to arise when petitions are filed by agents and/or the petition contains incomplete information. By establishing office policies, staff can be sure that each petition is handled according to policy, statutes, and case law.
Typical Abatement Situations
Examples of typical abatement situations that can be approved include:
- Illegal Assessment Rate
A property was erroneously classified, i.e., a residential property was assessed as commercial. - Illegal Levy
A property was assigned an incorrect tax area code, resulting in the application of an illegal mill levy. - Clerical Errors
Examples of clerical errors include data entry errors, computation errors, and incorrect measurement of improvements. - Real Property Changed from Taxable to Exempt
The value is prorated based on the number of days the real property was exempt from taxation, §§ 39-3-129 through 132, C.R.S. - Incorrect Acreage or Square Footage of Land
The petition will be approved if a clerical error occurred when the land area was calculated. If, however, the acreage was provided on a deed or survey that has been recorded by the clerk and recorder, the abatement will be denied as the assessor relied on information provided and of record, Citibank v. Board of Assessment Appeals, 826 P.2d 871 (Colo. App. 1992). - Improvement Assessed to Incorrect Parcel
The improvement value is removed from the incorrect parcel via an abatement petition and added to the parcel of the correct owner through a special notice of valuation. The tax roll is adjusted. If the property was incorrectly assessed as improved residential property and the parcel is vacant, the assessment rate applied to the land is changed to reflect the correct assessment rate. Due to the change in assessment rate, the abatement will be the net of the applicable tax on the value of the improvement and the increase in tax on the value of the vacant land at the correct assessment rate. Double check the applicable assessment rate based on the year of the petition. - Double Assessment
Real or personal property is on the tax roll twice. - Taxpayer Reporting Error
A taxpayer misreported the amount or value of property owned when completing a personal property declaration schedule, § 39-10-114(1)(a)(I)(A), C.R.S. - Overvaluation
A taxpayer believes the value is incorrect for a previous assessment year, and no protest was filed for that year. - Overpayment on Destroyed or Demolished Property
This includes the overpayment of tax on destroyed or demolished real property that was reported to the assessor prior to the levying of taxes (January 24, for 2024 only). If the owner fails to notify the assessor of the destruction, a proportionate valuation by the assessor is not required by law, § 39-5-117, C.R.S. Taxes assessed on destroyed improvements in subsequent years are considered illegal assessments. - Overpayment or Underpayment of Prepaid Tax
This includes the overpayment or underpayment of prepaid tax on titled manufactured homes that were relocated, § 39-5-205(4), C.R.S. - Net Overpayment of Audited Personal Property
This includes the net overpayment of audited personal property accounts, oil and gas leaseholds or producing mines, § 39-10-114(1)(a)(I)(E), C.R.S. - Value Adjustments
This includes value or classification adjustments made during protest or the county board appeals period that were not reflected on the tax warrant. - BAA or Court Order
This includes value changes made by the BAA or a court. The court or BAA order is presented to the treasurer, in lieu of an abatement petition, for a refund or abatement of taxes, § 39-8-109, C.R.S. - Tax Lien Sold in Error
Whenever an abatement petition is processed due to a tax lien sold in error on land upon which no tax was due at the time, the county shall reimburse the purchaser in the amount paid by him in connection with the purchase of the tax lien on the land, together with interest from the date of the purchase, § 39-12-111(1), C.R.S.
Examples of typical abatement situations that should be denied include:
- Best Information Available (BIA) Assessments
When an owner does not file a personal property declaration schedule with the assessor, the assessor assigns a BIA assessment to the property, § 39-5-116(1), C.R.S. A Notice of Valuation is mailed to the owner, and if the BIA value is not protested during the statutory time frame, an abatement petition filed by the owner on the BIA assessment should be denied, § 39-5-118, C.R.S. See Property Tax Administrator v. Production Geophysical Services, Inc. et al., 860 P.2d 514 (Colo. 1993). - Personal Property No Longer Used by a Business
If personal property was located in the county on the assessment date, the property continues to be taxable. It is important to remember that if personal property is sold during the calendar year or is put into storage, the property remains taxable for the entire assessment year and an abatement petition should be denied. Property in storage remains on the tax roll until it is sold, removed from the state, or put into use as personal effects. Newly acquired personal property remains non-taxable until January 1 following the year in which it is put into use, § 39-3-118.5, C.R.S. - Overvaluation
The law precludes owners from filing a protest and an abatement petition for the same assessment year when overvaluation is the reason the abatement was filed, § 39-10-114(1)(a)(I)(D), C.R.S. A statutory exception to the rule exists for personal property when 1) a Notice of Determination has been mailed to the taxpayer, and 2) an objection or protest is withdrawn or not pursued, and 3) the county assessor has undertaken an audit of the personal property that shows a reduction in value is warranted, § 39-10-114(1)(a)(I)(D), C.R.S. - Late Filing
Abatement or refund of taxes is limited to a maximum of two years after January 1 of the year following the year in which the taxes were levied, § 39-10-114(1)(a)(I)(A), C.R.S. The court ruled in Golden Aluminum Company v. Weld County Board of Commissioners, 867 P.2d 190 (Colo. App. 1993), “that the two-year period in which [the] taxpayer was required to file...[a] property tax abatement petition commenced on January 1 of [the] year after [the] year in which [the] disputed taxes were levied, and expired on [the] first business day of [the] calendar year two years later.” The court ruled in Leprino v. Huddleston (Property Tax Administrator), 902 P.2d 962 (Colo. App. 1995), that the abatement petition must be postmarked no later than the first working day in January following the two-year anniversary of the date the taxes were levied. - Best Information Available – State Assessed
If a state assessed company (public utility) fails to file a “statement of property,” the Administrator assigns a BIA value and mails a notice of the assigned value to the taxpayer. If the public utility does not file a petition or complaint as provided in § 39-4-108, C.R.S., the public utility shall be deemed to have waived any right to file an abatement petition, § 39-4-103(1.5)(c), C.R.S. - Tax Lien Certificate Holders
Tax lien certificate holders do not have standing to file petitions for years prior to obtaining a treasurer’s deed, Hughey v. Jefferson County Board of Commissioners, 921 P.2d 76 (Colo. App. 1996). - Homeowners Association Common Elements
The value of common elements transferred to a homeowners association after January 1 is not prorated. The full value remains on the tax roll for the current year. There is no provision in the law for prorating the value in these cases.
The Abatement Hearing
Abatement petitions are typically heard at regular commissioners’ meetings. The county commissioners must provide a seven (7) day notice of hearing to the taxpayer, § 39-1-113(5), C.R.S. Boards of county commissioners may send notices of hearing via fax, electronic mail to a phone number, or email to an electronic address if a person or an agent requests such notification. Statute requires that both the taxpayer and the assessor shall have the opportunity to be present at the abatement hearing, § 39-1-113(1), C.R.S.
If the assessor recommends denial of the petition, the assessor should prepare for the abatement hearing in the same manner as for protest hearings before the county board of equalization. The assessor should present evidence to substantiate the value assigned. If the recommendation from the assessor is that the petition be adjusted and then approved, the evidence should support the assessor’s recommendation for adjustment and approval.
Upon request, the respondent (commissioners) shall make available to the taxpayer, two working days prior to the hearing, data supporting the assessor’s valuation. The request shall be accompanied by data supporting the taxpayer’s valuation. The exchange of information does not prohibit the introduction at the hearing of data discovered as a result of the exchange, § 39-8-108(5)(d), C.R.S. This statute applies to appeals authorized under §§ 39-8-108, 39-5-122, 39-5-122.7, or 39-10-114, C.R.S.
The taxpayer should also be prepared to present evidence regarding the requested adjustment. The commissioners make their decision based upon the preponderance (greater weight) of evidence.
After the hearing, the commissioners may approve the petition, deny the petition, or approve the petition in part and deny the petition in part. If the commissioners deny a petition in whole or in part, the taxpayer must be notified of the commissioners’ decision to preserve the taxpayer’s rights. The notification should tell the taxpayer that the appeal is to the BAA and that any appeal must be filed within thirty (30) days of the mailing date of the commissioners’ decision, § 39-10-114.5, C.R.S., and Ward v. Douglas County Board of Commissioners, 886 P.2d 310 (Colo. App. 1994). The notice should also include the address and telephone number for the BAA.
If the petition is approved and the tax amount per schedule, per request year is $10,000 or less, the petition remains in the county for processing, going to the treasurer’s office to have the value adjusted and a new tax bill sent for processing the refund check.
If the petition is approved and the tax amount is over $10,000, two copies of the petition are forwarded to the Administrator for review, §§ 39-1-113(3) and 39-2-116, C.R.S. The clerk to the county board should include with the abatement petition, a transmittal, the assessor’s recommendation form, appraiser worksheet, and any other documentation that shows how the value was adjusted and how the amount to be abated or refunded was calculated.
Review by Property Tax Administrator
The Administrator reviews the petition only if the amount approved in whole or in part exceeds $10,000 in tax per year, per schedule. If the total abatement exceeds $10,000, but each year requested is $10,000 or less, the Administrator does not review the petition, § 39-1-113(2)(a), C.R.S., and the Administrator will return the petition to the commissioners. The same applies to “blanket” abatement petitions when each schedule, per year is $10,000 or less. In addition, if the petition is not in proper form the Administrator will return the petition, § 39-2-116, C.R.S.
The Administrator reviews the petition to ensure that the commissioners’ decision is in conformity with the Colorado Constitution, state statutes, and case law. If further clarification or documentation is required, the Administrator contacts the assessor. Sometimes, documentation is also requested from the petitioner.
The Administrator may approve the petition, deny the petition, or approve the petition in part and deny the petition in part. If the petition is approved, the original petition is returned to the office designated by the commissioners (the clerk and recorder, the treasurer, or the commissioners) for final processing. The Division keeps the copy of the petition for its records.
If the Administrator denies the petition, or denies the petition in part, the taxpayer is notified in writing of the decision and also of the right of appeal to the BAA within thirty (30) days of the date the Administrator’s decision was mailed, § 39-2-125(1)(b)(I), C.R.S., and Ward v. Douglas County Board of Commissioners, 886 P.2d 310 (Colo. App. 1994). A copy of the denial letter is included with the copy of the petition returned to the county official designated by the commissioners.
Copies of the denial letter also are mailed to the assessor, treasurer, and the commissioners. The Division retains the original petition for its records.
The BAA hears appeals on orders and decisions of the Administrator, § 39-2-124(1)(b)(I), C.R.S. If the BAA finds that the decision is either a matter of statewide concern or has resulted in a significant decrease in the total valuation for assessment of the county wherein the property is located, the Administrator may petition to the court of appeals, §§ 24-4-106(11) and 39-10-114.5(2), C.R.S. If the BAA does not find the decision a matter of statewide concern or has not resulted in a significant decrease in the total valuation for assessment of that county, the Administrator may petition the court of appeals for judicial review of such questions. If the Administrator is petitioning the court of appeals, it is recommended that the county not process the abatement refund until the court of appeals renders a decision.
Refund of Interest
For abatement petitions filed prior to January 1, 2018, refund interest accrues from the date the taxes are paid, § 39-10-114(1)(b), C.R.S.
Refund interest is not included in a refund of prior years’ taxes in cases involving an error made by a taxpayer in completing personal property schedules pursuant to § 39-5-107, C.R.S.
Regarding refunds involving errors or omissions made by a taxpayer in completing statements pursuant to article 7 of title 39, C.R.S., interest accrues from the date the abatement petition is filed if the county pays the refund within the time frame described in §§ 39-10-114(1)(a)(I)(B) and 39-10-114(1)(b), C.R.S., which could be as long as a year.
Abatement – cancellation of taxes.
Where a final determination is made granting an abatement or refund pursuant to the provisions of this section, the abatement or refund granted shall be payable at such time as determined by the board of county commissioners after consultation with affected taxing entities but no later than upon the payment of property taxes for the property tax year in which said final determination was made.
§ 39-10-114(1)(a)(I)(B), C.R.S
For abatement petitions filed after January 1, 2018, refund interest begins to accrue from the date the complete abatement petition is filed. Beginning January 1, 2020, refund interest begins to accrue from the date the complete petition was filed or the date payment is received by the treasurer, whichever is later, § 39-10-114(1)(b), C.R.S.
If, based on competent evidence, a property owned by a non-profit organization should have been exempt from taxation but remained taxable due to a taxpayer’s error or omission, then interest on the abatement may be awarded for up to two years, § 39-10-114(1)(c), C.R.S.