Chapter 7 - Abstract, Certification, and Tax Warrant

Abstract of Assessment

The Abstract of Assessment (abstract) is a compilation of all real and personal property located within the boundaries of each county, § 39-5-123, C.R.S. Each county assessor is required to file this report with the Administrator annually. Real and personal property is classified according to use and listed accordingly within ten property classes. The ten property classes, as established by the Administrator, are: vacant land, residential, commercial, industrial, agricultural, natural resources, producing mines, oil and gas, state assessed, and exempt property. Within each property class, various subclasses are designated. The various subclasses are assigned a four-digit code for identification purposes.

Purpose

The assessed valuations and related statistics provide source information for the Administrator’s Annual Report to the Governor and the General Assembly, impact statements, state aid to schools, private corporations, and other governmental agencies and taxing entities.

Completing the Abstract

The assessment roll, which lists individual real and personal property records, serves as the primary source for compiling the abstract. The individual property records contain property subclass and tax area designations which serve as a tool for generating the various reports needed to complete the abstract. The distribution of the final state assessed property values must be finished prior to completing the abstract and certification of values. See Chapter 11, State Assessed Property, for value distribution guidelines.

The aggregate valuation of each property is compiled by subclass after the assessor renders decisions on real and personal property protests, applies appropriate value adjustments and prior to decisions rendered by the county board of equalization (county board or CBOE). The aggregate valuation of towns and school districts is compiled by property class after the county board renders decisions on appeals. The county board renders decisions no later than August 5 or no later than November 1 for counties that use the alternate protest procedure. The county board value changes are tracked by subclass for reporting purposes.

The prior year’s abstract is a valuable resource in completing the current abstract.

The Division recommends that assessors produce and review in-house abstract reports on a monthly basis to assist the assessor in keeping a tight control of value data maintained on the assessment roll. The following schedule is recommended as a minimum:

• January 1: documents the value base on the assessment date
• January 3: provides values for recertification of values to taxing entities (for 2024 only)
• May 1: documents the value base before the protest period
• July 10: documents the value base after the 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: documents the value base after county board appeals
  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 and certification of values
• December 10: provides values for recertification of values to taxing 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.

Computations and Codes

Agricultural and mineral acreages, and production volumes, are entered as whole numbers. The property class designations and the corresponding four-digit subclass codes are established by the Administrator and are described in Chapter 6, Property Classification Guidelines and Assessment Percentages.

The various property subclasses allow the assessor to closely track property. This assists the assessor in performing administrative and appraisal functions such as sales confirmation and analysis, valuation, and application of the appropriate assessment rate. Individual counties may establish internal subclass codes, which allow for more detailed tracking and data analysis. Internal codes established by a county are tied to a four-digit subclass code established by the Administrator for abstract reporting purposes.

Substantial Changes from Preceding Year

Substantial changes from the preceding year are specified in writing and attached to the abstract filed with the Administrator. These changes include, but are not limited to, large increases or decreases in assessed valuation, classification, parcel, unit, and other numerical counts, and any other significant differences from the prior year’s abstract.

Sections within Abstract of Assessment Form

A copy of the Abstract of Assessment may be obtained from the Division. This form is generated from the automated abstract program found on the Division’s web site.

Property Class Pages

Property values for each of the ten classes of property are shown on pages 2 through 11 of the abstract, listed by property subclass. The values reported on these pages reflect the value of

property in the county after protests to the assessor are processed. Exempt personal property is no longer tracked for the abstract of assessment report.

New Construction

New construction and demolished/destroyed property values are reported by class. They are expressed in terms of assessed values and reflect county board adjustments.

The value reported on the abstract for new construction is identical to the value reported on the county and sum of school district certifications for the 5.5 percent statutory property tax revenue limitation. A detailed description of new construction for the abstract and certifications (5.5% limit) is found later in this chapter under the heading Line E – New Construction.

Destroyed property is the full assessed value of all real property demolished or destroyed in the current year and personal property associated with real property demolished or destroyed in the previous year. New construction is entered into the abstract program by school district. It appears in the Abstract of Assessment on two pages, one by county, and one by school district. Each page includes the categories described below.

Shine – 20XX
Abstract of Assessment (CRS 39-5-123)
Colorado Department of Local Affairs - Division of Property Taxation
New Construction

1. Column One - Property Classes: The residential real and personal property amounts are reported separately because the personal property is assessed at a different rate. The personal property and real property amounts associated with the non-residential classes are reported as a total by class.
2. Column Two - All New Construction: Shows the assessed value of all new construction including new personal property connected to new improvements, additions to structures, new improvements, and substantial remodeling assessed as of January 1 of the current year. For natural resources, producing mines, and oil and gas, new construction is comprised of new improvements associated with the operation, and new personal property associated with those new improvements. Do not report increased production on this page, as we get this data from the oil and gas page of the abstract. For state assessed new construction, report the value shown under the 5.5% limit column on the final notice of valuation.
3. Column Three - Demolished and Destroyed: Shows the full assessed value of all real property demolished or destroyed in the current year and personal property associated with real property demolished or destroyed in the previous year. For natural resources, producing mines, and oil and gas, destroyed property is comprised of destroyed improvements associated with the operation and personal property associated with those destroyed improvements. Enter the destroyed property value as a negative number.
   NOTE: The Division does not provide assessors with the value of destroyed state assessed property; thus, the assessor does not report a value in this field.
4. Column Four - Net New Construction: The result of column two minus column three. This number is calculated by the automated program.

Municipalities and School Districts

The assessed value of property within each city and town is reported by property class in the abstract. The assessed value of property within each school district is also reported by property class in the abstract. The values listed on these pages reflect county board adjustments. The Total column on these two pages of the abstract represents the total value of all property within the city, town, or school district boundary.

Tax Increment Financing

The assessed values of the base and the increment for either a Downtown Development Authority (DDA), an Urban Renewal Authority (URA), or a County Revitalization Authority (CRA), are listed for school districts and cities and towns within the tax increment financing area of the Schools and Cities and Towns pages. County Revitalization Authorities (CRA) plan areas do not include schools, cities and towns. A negative increment is listed as a zero. The total value for the TIF area(s) within each school district and municipality is the sum of the base and increment values. It is calculated by the automated abstract program and listed on the printed Cities and Towns TIF page and the School District TIF page of the abstract. Refer also to Chapter 12, Special Topics.

Summary of Assessment Roll

The land, improvement, personal property, and total assessed values for each property class are carried forward from the property class pages of the abstract by the automated program.

Abstract Counts

The various types of counts entered for each subclass and the total assessed value of property within each subclass are reflected in the abstract. Oil and gas volumes, barrels, or MCFs, should reflect volumes sold at the wellhead. Abstract counts for possessory interest are the counts for the number of leases and are reported in the “Improvements” column.

County Board of Equalization Changes

The total number of county board changes and the net assessed value change are shown by subclass in the abstract. Value reductions are entered as a negative number. When value increases are entered, it is not necessary to use a plus sign.

Summary of County Board Changes

The total assessed value of the individual property class values plus or minus county board changes must equal the school district values by property class. This is possible because the school district values reflect county board changes, and the individual property class values do not. To verify the balance, match the property class values listed under the heading “School Districts” to the property class values listed under the heading “Total” on the Summary of County Board of Equalization Changes page of the abstract. A “0” in the “Difference” column for each property class, provides verification that the number sets match.

Shine – 20XX
Abstract of Assessment (CRS 39-5-123)
Colorado Department of Local Affairs - Division of Property Taxation
Summary of CBOE Changes

Please verify that the final amount certified is the total assessed valuation of all property after changes by the county board.

Affidavit of Assessor

The assessor must complete and sign the affidavit. The deputy assessor cannot sign for the assessor. The county clerk notarizes the assessor’s signature.

NOTE: The State Board of Equalization (state board) requires original signatures on the abstract. Stamped signatures are unacceptable.

Certification by County Board of Equalization

The chair of the county board of commissioners must complete and sign the Certification by County Board of Equalization. The county clerk notarizes the chair’s signature.

NOTE: The State Board of Equalization requires original signatures on the abstract. Stamped signatures are unacceptable.

State Board of Equalization Changes and Certification

Any changes made by the state board are noted on the final page of the abstract. This page also includes the state board’s certification to the county assessor.

Review of Abstract Data

The current abstract should be compared to the prior year’s abstract. Data that seems out of line should be verified and corrected if necessary. The following items are examples of situations to verify when generating your reports or the final review of your abstract.

• Internal codes that are not tied to a subclass code established by the Administrator
• 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 (compared to prior year)
• Significant increase/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
• Omission of entire class or subclass (compared to prior year)
• Classification codes that do not match the state assigned codes or internal codes
• Acreages are rounded to the nearest whole number
• Proper entry of new construction and destroyed property
• Verify school districts and cities and towns listed in the automated abstract (If changes occurred, contact the Division)
• Zero parcel/unit count for a subclass with a value entry
• Proper entry of the CBOE adjustments (including the number of adjustments and the value change)
• Cities and Towns page must reflect CBOE adjustments
• School District page must reflect CBOE adjustments

Balancing the Abstract

The following areas within the abstract must balance:

• Both the State Assessed Property class page and the state assessed class total for school district(s) from the School District page of the abstract = August County Notice of Valuation (companies and carlines) from the Division
• Property class pages +/- CBOE adjustments = School District Values by Class
  The Summary of County Board of Equalization Changes page of the abstract can be used to verify the balancing. The “Assessed” column represents the class values prior to CBOE changes. The “Total” column represents the “Assessed” column +/- the “CBOE” changes. The “School District” column represents the class values from the school district page. A “0” in the “Difference” column for each property class, provides verification that the number sets match.
• The base value total on the Cities and Towns page and the base value total on the School District page should match.
• The increment value total on the Cities and Towns page and the increment value total on the School District page should match.

Colorado County 2001
Abstract of Assessment (CRS 39-5-123)
Colorado Department of Local Affairs Division of Property Taxation 
Cities and Towns (Tax Increment Financing)

Colorado County 2001
Abstract of Assessment (CRS 39-5-123)
Colorado Department of Local Affairs Division of Property Taxation 
Cities and Towns (Tax Increment Financing)

When balancing within the abstract, be reminded that:

• The Residential Personal Property subclass (1410), which has a residential abstract code, is reported on the Commercial page.
• The Agricultural Residences subclass (4277), which has an agricultural abstract code, is reported on the Residential page.
• The Agricultural Manufactured Homes subclass (4278), which has an agricultural abstract code, is reported on the Residential page.

Because these subclasses are reported on a class page that does not correspond with the abstract code, an adjustment is required on the Cities and Towns page and the School District page for those property classes. When this process is not completed correctly, the Summary of County Board of Equalization Changes page will reflect the error. Administrative systems may be programmed to adjust for this situation. When this capability is missing within the system, the adjustments must be made manually.

Balancing Abstract to Certification of Values

• Total taxable value of school districts from the Summary of CBOE Changes page and/or the School District page of the abstract = Current Year’s Assessed Value certified to the country
• Total taxable value of school districts from the Summary of CBOE Changes page and/or the School District page of the abstract = Sum of Current Year's Assessed Value certified to school district(s)
• Total taxable value for cities from the Cities and Towns page of the abstract = Sum of Current Year's Assessed Value certified to city(s)/town(s)
• Total new construction shown in the new construction column on the New Construction page of the abstract = Total New Construction certified to the country
• New construction shown in the new construction column for each School District page of abstract = Total New Construction certified to each school district

Filing the Abstract

The assessor prepares three copies of the abstract, and is required to file two copies with the Administrator no later than August 25 of each year or no later than November 21 for counties that elect to use the alternate protest period, §§ 39-5-123(1)(a) and (2), C.R.S. The third copy is maintained in the assessor’s office for endorsement of the tax warrant, § 39-5-124(1), C.R.S. If the alternate protest and appeals procedure is used, the Division requests that the assessor complete a preliminary abstract as of August 25, without CBOE adjustments. The preliminary abstract should include a note explaining that the values are preliminary and that a final abstract will be provided after county board hearings are completed. Value changes that occur after August 25 are reflected in the November abstract.

To assist the assessor in meeting this deadline, an automated abstract program is provided to each county by the Division. A unique county account will need to be created when the county logs into the automated system for the first time. At the time of the creation of the account, the county will need to agree and accept the mandatory terms and conditions before logging into the system. Please contact the Division if school district names change or new cities are created in your county so the automated abstract can be updated.

The assessor and the chair of the county commissioners must sign the copies filed with the Administrator, §§ 39-5-123(1)(a) and (b), C.R.S. The abstract may be mailed or hand-delivered to the Property Tax Administrator at 1313 Sherman Street, Room 419, Denver, Colorado 80203.

If the individual abstracts are found to be complete and in balance, the Administrator certifies such fact to each assessor. When an abstract is not completed properly or does not balance, the assessor is contacted for a correction. The certification is conclusive evidence of the correctness as to form, time, and place of filing, § 39-5-124(2), C.R.S.

Certification of Abstract of Assessment

After the abstracts have been reviewed and accepted by the Administrator, they are forwarded to the state board no later than October 15 for review and certification by the chair, § 39-2-115(3), C.R.S. Abstracts for counties that elect to use the alternate protest and appeals procedure are submitted no later than November 21. The Administrator will review and accept those abstracts and will forward the abstract to the state board for review as soon after their receipt as possible.

The state board reviews the assessed value of the various classes and subclasses of taxable real and personal property as reflected in the abstract of each county, § 15, art. X, COLO. CONST., and § 39-9-103(4), C.R.S. The state board may, by order, change the valuation of any class or subclass of property changed by a county board, § 39-9-103(7), C.R.S. The state board corrects any obvious errors in an abstract, § 39-9-104, C.R.S. The changes are noted on the State Board of Equalization Certification page of the abstract.

The abstract is returned to the county assessor upon certification of the assessed values by the state board chair. This certification must be completed no later than December 20 of each year, § 39-9-105(1), C.R.S. The returned copy contains all required signatures. The assessor must implement any changes made by the state board, §§ 39-5-127 and 39-9-104, C.R.S.

Certification of Values to Taxing Entities

Certification of values is a process by which the assessor reports value and revenue information to each taxing entity for property within its boundary. The final state assessed value distribution must be finished and actual value adjustments applied to properties prior to completing the certification of values. See Chapter 11, State Assessed Property, for value distribution guidelines.

Purpose

The data certified by the assessor to a taxing entity is used by the entity to determine such information as the amount of revenue that can be generated from the taxable property within its boundary, the maximum revenue and spending increase over the prior year’s revenue and spending, and the mill levy needed to generate the desired revenue.

Each year, taxing entities are required to develop a budget for the upcoming year. Once the projected expenses have been determined and the budget is finalized at a public hearing, revenue must be generated to fund the expenses. Most taxing entities derive some of their operating revenue from property tax. The data furnished by assessors is essential to the process.

Revenue and Spending Limitations

Local Limits

Section 20 of article X of the Colorado Constitution (TABOR), places several limits on the budgets of local and state governments. Two of the local government (taxing entity) limits, the fiscal year spending limit and the property tax revenue limit, are calculated in part from information provided by the assessor to each taxing entity on the certification of values form. The limits require voter approval for any increase in annual spending or property tax revenue that exceeds the rate of inflation plus the rate of local growth. For non-school taxing entities, “local growth” is the percentage change in the actual value of real property resulting from new construction and other taxable additions of real property minus destroyed property and other taxable deletions of real property. The certification of values form includes the total actual value of real property and line items for additions to and deletions from taxable real property. For school districts, “local growth,” is the percentage change in student enrollment.

TABOR also prohibits an increase to a taxing entity’s mill levy, unless the increase was approved by voters. However, the Colorado Supreme Court ruled in Bolt v. Arapahoe County School District Number Six, 898 P.2d 525 (Colo. 1995), that voter approval is not required for a mill levy increase certified to recover revenue lost through abatements because such an increase does not constitute growth in government. The responsibility for enforcing any of the limits found in TABOR rests with the taxpayers.

Most local taxing entities, other than school districts and home rule municipalities, are also subject to a limitation found in § 29-1-301, C.R.S. This restriction, called the 5.5% limit, is similar in concept to the TABOR property tax revenue limit, but it is calculated using different information. The 5.5% limit allows taxing entities to increase their property tax revenue above the previous year by a maximum of 5.5 percent, and excludes certain types of revenue from the limit. Examples of excluded revenue include revenue associated with the assessed value of new construction, annexations/inclusions, increases in the production of a producing mine, and new oil and gas production. These amounts and others needed to calculate the limit are also listed on the assessor’s certification of values form. The limit can be exceeded with voter approval.

The assessor sends a copy of each taxing entity’s certification of values to the Division of Local Government. The Division of Local Government calculates the 5.5% limit for each taxing entity subject to the limitation and enforces the provisions of the law. Taxing entities, assessors and county commissioners may contact the Division of Local Government for a copy of the 5.5% limit calculation worksheet. The form number is DLG 53.

An attorney general’s opinion issued August 27, 1993, states that the more restrictive of the constitutional and statutory property tax limitations shall prevail. See Addendum 7-A, Attorney General’s Opinion, for a copy of the attorney general’s opinion.

State Limits

In addition to the local limits described above, § 20, art. X, COLO. CONST., places various limits on the revenue and spending of state government, including a state limit on fiscal year spending and prohibitions against new taxes and tax rate increases without voter approval.

Assessor Reporting Requirements

The assessor is required to certify values to all legally formed taxing entities, including entities that have never levied or did not levy for property tax the previous year. The Division recommends that assessors also certify values to special districts that have declared themselves inactive pursuant to § 32-1-104(3), C.R.S. See Inactive Special Districts in Chapter 3, Specific Assessment Procedures.

The data assessors are required to certify is detailed in this section and is separated into “local growth data” and “5.5 percent limitation data.” Other reporting requirements are also placed upon the assessor. Those are detailed later in this section under the headings School District Elections,” “truth in taxation,” and “growth valuation for assessment.”

The Division of Local Government publishes a form (DLG 57) annually that can be used for the certification of values process. The Division of Local Government does not mandate the use of the DLG 57 form. Assessors may generate their own form, as long as the required data is included.

The values reported to taxing entities reflect county board of equalization adjustments unless the county implemented the alternate protest and appeals procedure. If the alternate protest and appeals procedure is used, the assessor will certify values as of August 25, without CBOE adjustments. Value changes that occur after August 25 are reflected in the January recertification, for 2024 only. An example of a certification of values form is shown below, and a detailed description of each line item is found on the pages that follow the form.

House Bill 21-1312 states the assessor shall calculate the aggregate value of exempt business personal property within the county based on the property that is listed on schedules for the property tax year with a total value that is more than seven thousand nine hundred dollars and less than or equal to fifty thousand dollars. Additionally, for property tax years commencing on January 1, 2022, and each year thereafter, each assessor shall calculate an estimate of the aggregate value of exempt business personal property for the county and each local governmental entity located within the county that is equal to the applicable baseline exemption total adjusted by the growth factor for each property tax year commencing on and after January 1, 2022.

Senate Bill 24-233 establishes a reimbursement mechanism for local governments, excepting schools.

For property tax year 2024, county
assessors shall report to the Property Tax Administrator by March 1, 2025, the necessary information of every local government that had a decrease in assessed value of real property between 2022 and 2024. Reimbursements will be based on the loss of value and the 2022 modified mill levy less mills for bonds and contractual obligations.

When calculating the property tax revenue loss or revenue reduction for a local government entity, the assessor shall use the entity’s modified mill levy for property tax year commencing January 1, 2022. The modified mill levy is calculated by excluding, from the approved mill levy, any mills levied for payment of bonds and interest or for payment of any other contractual obligations that have been approved by a majority of the local governmental entity’s voters. 

No later than March 1, 2025, each treasurer shall report the reduction in assessed valuation of real property for each entity that had a decrease in assessed valuation between property tax year 2022 and 2024, and any additional information as necessary, to the Administrator. After confirming the amounts are correct, the administrator shall forward the correct amounts for each county to the State Treasurer for reimbursement to each county treasurer in accordance with
§ 39-3-210, C.R.S.

Certification of Valuation

5.5 Percent Statutory Property Tax Revenue Limitation

No later than August 25, the assessor must certify to each taxing entity located in the county the total valuation for assessment and the exceptions to the 5.5% limitation described in §§ 29-1-301 and 39-5-121(2)(a), C.R.S. The following information must be certified:

Line A - Previous Year’s Net Total Taxable Assessed Valuation

Certify the prior year’s net total assessed value of taxable real and personal property within each taxing entity’s boundaries. Generally, this value is taken from the prior year’s final certification of values.

Line B - Current Year’s Gross Total Taxable Assessed Valuation

Certify the current year’s gross assessed value of the taxable real and personal property, including taxable real and personal property possessory interests, within each taxing entity’s boundaries.

• When a non-school taxing entity gives a personal property exemption as allowed under the Colorado Constitution, the assessed value must reflect that action.
• If a school district gives a personal property exemption as allowed under the Colorado Constitution, the assessed value must reflect that action, but the reduction must also be itemized on the certification. Section 22-54-106(9), C.R.S., provides that any such exemption granted by a school district will not result in an increase to the state’s share of the total program.
• The assessed value for state assessed property is shown in the column titled “$ Assessed” on the Notice of Valuation. This amount reflects the taxable value of both real and personal property. The assessor must split each company’s value between real and personal according to the company’s distribution letter or according to Division recommendations.

Line C - TIF Area Increments

Certify the sum of the increment values of any tax increment finance areas that lie within the boundaries of the taxing entity.

Line D - Current Year’s Net Total Taxable Assessed Valuation

Certify the current year’s net total assessed value. The value is the difference between the current year’s gross total assessed value and the increment value. If there is no tax increment financing area or no increment value, the “Current Year’s Net Total Assessed Value” is the same as the “Current Year’s Gross Total Assessed Value.”

The mill levy is calculated using the current year’s net assessed value, but it is levied against the current year’s gross assessed value. The tax revenue produced by the increment valuation is paid into the funds of the tax increment financing authority, §§ 39-5-128(3), 31-25-107(9)(a), and 31-25-807(3)(a), C.R.S. Please refer to the discussion of Tax Increment Financing found in Chapter 12, Special Topics.

Line E - New Construction

Certify the assessed value of taxable real property improvements newly constructed in the previous year and new personal property connected with the new construction. Also certify the current year assessed value of taxable real property that was constructed during a recent prior year, and associated personal property, if the value of the property had never been reported as new construction because it was omitted from the assessment roll. This includes any new construction that was missed in the prior to the current year. New construction includes remodels and additions. A titled manufactured home may be considered new construction if it is new to the county and is not replacing a manufactured home that previously existed at the same location. For state assessed properties, use the new construction amount listed in the “5.5% Limit” column on the Notice of Valuation.

• The value assigned to new construction must reflect the new property’s contribution to the total value of the property, at the current level of value. It is the difference between the assessor’s total value of the property and what the total value would have been if the new construction had not occurred. In the first year of a revaluation period, new construction is the amount of value equal to the additional percentage of completion or the percentage of contribution to the new total value.
  Example: If a structure increases from 80% complete to 100% complete, the new construction will reflect 20% of the total value of the improvement calculated at the new level of value. Similarly, if a remodel or addition contributes 20% of the value to the structure, then new construction would be reported at 20% of the new reappraised value
• For residential properties, the value of the remodel or addition must be determined by the market approach to value. If the structure change results in added value to the improvement, it is reported as new construction.

For structures that take longer than one year to complete, two options exist for reporting the value of the new construction. Option one: report only that portion of the value of the structure completed each year as new construction. Any portion of the value of the structure that was reported as new construction the previous year is not reported again. Option two: report the full value of the new structure as new construction when the structure is 100 percent complete.

NOTE: New construction does not include the production-based value of a new well, and it does not include the personal property associated with a new well.

Line F – Increased Production of Producing Mine

Certify the increased assessed valuation due to the increased volume of production of a producing mine (abstract codes 6110, 6120, 6130, 6140, 6150). Do not certify the increased valuation of a natural resources property. For instructions on classification, refer to Producing Mines Property in Chapter 6, Property Classification Guidelines and Assessment Percentages.

There is no assessment rate applied to producing mines land. The actual and assessed values are the same amount, which is the greater of 25 percent of gross proceeds or 100 percent of net proceeds.

The assessor certifies this value automatically; however, before a taxing entity can exclude this from the limit, it must provide evidence showing that the increase causes an increase in the level of services provided by the taxing entity. The impact certification document is obtained from the Division of Local Government. The Division of Local Government recommends that each affected entity file the impact certification document no later than ten days after the certification of values is received.

Line G – Annexations/Inclusions

Certify the assessed value of taxable real and personal property annexed into the boundary of a municipality, and the assessed value of taxable real and personal property included within the boundary of a special district. The amount is certified ONLY to the entity that is affected.

• If new construction exists within an annexed or included area, the value of the new construction is certified as either new construction OR as an annexation for that taxing entity, NOT BOTH.
• The assessed value of the taxable real and personal property within the annexed or included area is reflected in the “Current Year’s Gross Assessed Value” for the taxing entity that included the property in its boundaries.

Line H – Previously Exempt Federal Property

Certify the increased assessed valuation due to previously exempt real and personal federal property that became taxable. The assessed value of real and personal property possessory interests is included in this amount the first year the interest is valued. The assessor certifies this value automatically; however, the affected taxing entity must file an impact certification document with the Division of Local Government. The impact certification document is obtained from the Division of Local Government. The Division of Local Government recommends that each affected entity file the impact certification document no later than ten days after the certification of values is received.

Line I – New Primary Oil or Gas Production

Certify the assessed valuation due to new oil and gas production. The assessment rates for oil and gas leaseholds and lands are 87.5 percent for primary production and 75 percent for secondary production.

In order for an entity to exclude this value from the limit, the Division of Local Government must grant the authority to do so, § 29-1-301(1)(b), C.R.S. The entity makes a request for exclusion by filing an impact certification document with the Division of Local Government. The Division of Local Government recommends that each affected entity file the impact certification document no later than ten days after the certification of values is received.

The definition for “new oil and gas primary production” is the primary production of oil and gas wells that reported production for the first time in the preceding year. It does not include:

1. Increased level of production from old wells
2. Renewed production from shut-in wells
3. Any valuation of equipment or fixtures
4. Any site improvements, buildings, or other structures

Because of the nature of coal bed methane gas wells, new primary production for this type of well will include increased levels of production for the wells until they have reached their maximum production.

Example:

Line J – Omitted Taxes and Taxes Received Last Year on Omitted Property

Certify the amount of revenue received by the taxing entity between August 1 of the preceding year and July 31 of the current year as taxes paid on taxable property that was previously omitted from the tax warrant. This includes omitted property revenue from taxable real and personal property possessory interests. It also includes revenue received in conjunction with oil and gas leaseholds and lands that had been omitted from the assessment roll, but it does not include revenue received for a prior year from oil and gas leaseholds and lands due to underreporting of the selling price or quantity sold, § 29-1-301(1), C.R.S. Increases in value ordered by the Board of Assessment Appeals, District Court, or an arbitrator are tracked as omitted property for the most current year. 

Based on the Supreme Court’s decision in Aggers, Assessor v. People Ex Rel. The Town of Montclair, 20 Colo. 348, 38 P. 386 (1894), the concept of omitted property has been expanded to include property for which the mill levies of one or more taxing entities were omitted from the property on the tax warrant. According to the Division of Local Government, revenue collected on this type of omitted property is included in the calculation of the 5.5% limit. As such, it is certified as omitted property revenue for the 5.5% limit calculation. The Division’s policy on this issue is discussed in Chapter 3, Specific Assessment Procedures, under Omitted Revenue.

Example:

A residential improvement was assessed as omitted property for the prior year. The tax amount collected by the treasurer was $569.84. The property is located in a tax area where the following taxing entities have the authority to levy. The mill levies for those entities are listed below. Calculate the amount that should be certified as omitted revenue to each entity.

Two mathematical approaches are:

Tax ÷ Mill levy = Assessed value

Assessed value × Individual mill levy = Tax

OR

Individual entity mill levy ÷ Total mill levy = Decimal relationship for that entity

Total tax amount × Decimal for entity = Tax

Manual calculation examples:

OR

The assessor obtains this information from the county treasurer. The amount is the total property tax revenue received by the taxing entity from August 1 of the previous year through July 31 of the current year from taxes paid on property that was previously omitted from the assessment roll of any year.

Omitted revenue for purposes of certification of values does not include typographical errors or otherwise erroneous levies applied for a specific taxing entity. Omitted revenue should only include revenue from property completely omitted from the tax roll or property omitted from a taxing district.

Line K – Abated and Refunded Revenue

Certify the amount of revenue abated or refunded by the taxing entity. The assessor obtains this information from the county treasurer. The amount reported is the total property tax revenue for any year that was abated or refunded by the taxing entity from August 1 of the previous year through July 31 of the current year. The amount includes revenue lost as a result of BAA and court decisions on appeals of value. The amount reported includes abatements for real and personal property possessory interests.

Tabor Local Growth Data

No later than August 25, the assessor notifies non-school taxing entities of the total actual value of all real property within the taxing entity; the actual value of newly constructed taxable real property improvements; the actual value of destroyed taxable real property improvements; and additions to, minus deletions from, taxable real property, in accordance with the manner prescribed by the Administrator, § 39-5-121(2)(b), C.R.S. The local growth data is located in the lower half of the certification form (DLG 57). The following information must be certified:

Line L – Current Year’s Total Actual Value of All Real Property

Certify the actual value of the real property, including taxable real property possessory interests, located within each non-school taxing entity’s boundaries. This amount includes the actual value of all taxable real property plus the actual value of religious, private schools, and charitable real property, §§ 39-1-102(14) and 39-3-128, C.R.S.

• The actual value for state assessed property is shown in the column titled “$ Actual” on the Notice of Valuation. This amount reflects the value of both real and personal property. The assessor must split each company’s value between real and personal, according to the company’s distribution letter or according to Division recommendations.
• For producing mines land (abstract codes 6110, 6120, 6130, 6140, 6150), the actual and assessed values are the same amount, which is the greater of 25 percent of gross proceeds or 100 percent of net proceeds.

Line M – Construction of Taxable Real Property Improvements

Certify the actual value of taxable real property improvements newly constructed in the previous year (assessed as of January 1 of the current year). Also, certify the current year’s actual value of taxable real property that was constructed during a recent prior year if the value of the property had never been reported as new construction because the property was omitted from the assessment roll. New construction includes remodels and additions. For state assessed properties, use the new construction amount listed in the “Tabor Actual” column on the notice of valuation. Titled manufactured homes new to the county may be considered as new construction. If the assessor chooses to recognize titled manufactured homes as new construction, titled manufactured homes that move out of the county must be recognized as destroyed property.

• The value assigned to new construction must reflect the new property’s contribution to the total value of the property, at the current level of value. It is the difference between the assessor’s total value of the property and what the total value would have been if the new construction had not occurred. In the first year of a revaluation period, new construction is the amount of value equal to the additional percentage of completion or the percentage of contribution to the new total value.
  Example: If a structure increases from 80% complete to 100% complete, the new construction will reflect 20% of the total value of the improvement calculated at the new level of value. Similarly, if a remodel or addition contributes 20% of the value to the structure, then new construction would be reported at 20% of the new reappraised value.
• For residential properties, the value of the remodel or addition must be determined by the market approach to value. If the structure change results in added value to the improvement, it is reported as new construction.

For structures that take longer than one year to complete, two options exist for reporting the value of the new construction. Option one: report only that portion of the value of the structure completed each year as new construction. Any portion of the value of the structure that was reported as new construction the previous year is not reported again. Option two: report the full value of the new structure as new construction when the structure is 100 percent complete.

Line N – Annexations/Inclusions

Certify the actual value of taxable real property annexed into the boundary of a municipality and the actual value of taxable real property included within the boundary of a special district. The amount is certified ONLY to the entity that is affected.

• If new construction exists within an annexed or included area, the value of the new construction is certified as either new construction OR as an annexation/inclusion for that taxing entity, NOT BOTH.
• The actual value of the taxable real property within the annexed or included area is reflected in the current year’s actual valuation for the taxing entity that included the property in its boundaries.

Line O – Increased Mining Production

Producing Mines Land (abstract codes 6110, 6120, 6130, 6140, 6150): For a new producing mine, certify the actual value of the producing mines land. For an existing producing mine, certify an increase to the actual value of the producing mines land, § 39-6-106(5), C.R.S. Producing mines are defined in §§ 39-6-101(1), 104 and 105, C.R.S. There is no assessment rate for producing mines land. The actual and assessed values are the same amount, which is the greater of 25 percent of gross proceeds or 100 percent of net proceeds. (For instructions on classification, refer to Producing Mines Property in Chapter 6, Property Classification Guidelines and Assessment Percentages.)

Natural Resources Land (abstract codes 5110, 5120): For a new producing natural resources property, certify the actual value of the natural resources land. Do not certify an increase to the actual value of a previously existing natural resources property. The assessment rate for natural resources land is 27.9 percent. (For instructions on classification, refer to Natural Resources Property in Chapter 6, Property Classification Guidelines and Assessment Percentages.)

Line P – Previously Exempt Property

Certify the actual value of real property that changed from an exempt status to a taxable status (previously exempt).

To simplify the reporting of this value, it is recommended that assessors report the full-year value of the property that changed taxable status rather than certifying prorated values over two years. In some instances, the property that became taxable is only a portion of the entire property.

The actual value of real property possessory interests is included in this amount the first year the interest is valued. The value reported is for the current year only, and is the full value of the possessory interest.

The actual value of real property that was exempt pursuant to a lease with the state, a political subdivision, or a state supported institution of higher education is included in this amount when the property returns to a taxable status. See § 39-3-124(1)(b)(I), C.R.S., for details regarding this exemption.

Line Q – Oil or Gas Production from a New Well

Certify the actual value of new oil or gas production. This production must be from a new well. For all wells except coal bed methane wells, the production certified to taxing entities will be the amount reported in the first year of production.

The value certified for coal bed methane gas wells includes the first 12 months of product sold or transported from the premises unsold. In most cases, the 12 months of production will be reported by the operator over a two-year time period. For example, a well began producing in June of 2021. The June through December 2021 production values are reported by the operator in 2022. The value from this seven-month period is certified to the taxing entities in August of 2022. The January through December 2022 production values are reported by the operator in 2023. The value reported in 2023 must be prorated to account for the full 12-month period (seven months reported in 2022 as 2021 production + five months reported in 2023 as 2022 production = 12 months). The assessor must determine the value attributable to the five-month period from January 2022 through May 2022. The value from this five-month period is certified to taxing entities in August of 2023.

Line R – Taxable Real Property Omitted from The Previous Year’s Tax Warrant

Except for omitted property that is being certified as new construction, certify the current year actual value of real property omitted from the previous year’s tax warrant. The value certified reflects property that was discovered and valued as omitted property at any time after values were recertified in December of the prior year. The actual value of taxable real property possessory interests is included in this amount. Increases in value ordered by the Board of Assessment Appeals, District Court, or an arbitrator are tracked as omitted property for the most current year.

Based on the Colorado Supreme Court’s decision in Aggers, Assessor v. People Ex Rel. The Town of Montclair, 20 Colo. 348, 38 P. 386 (1894), the concept of omitted property has been expanded to include property for which the mill levies of one or more taxing entities were omitted from the property on the tax warrant. Revenue collected on this type of omitted property is included in the omitted revenue certified to taxing entities for the 5.5% limit calculation. However, the question of whether it should also be included in the actual value certified to taxing entities as omitted property for local growth is more complex. The Division recommends that such value should not be included in the total actual value of omitted property certified, but it should be separately listed and explained on an addendum to the certification.

Omitted revenue for purposes of Certification of Values does not include typographical errors or otherwise erroneous levies applied for a specific taxing entity. Omitted revenue should only include revenue from property completely omitted from the tax roll or property omitted from a taxing district.

Depending on the circumstances of the omission, a taxing entity, in consultation with its attorney, may determine that the actual value associated with such revenue should be included in its local growth calculation. For instance, if the omission occurred because a recent annexation or inclusion was not processed correctly, the entity may determine that it had not been certified the appropriate value for the annexation or inclusion, resulting in a reduced local growth calculation for a prior year. The entity might then determine that it should correct the error by including the additional omitted value as local growth for the current year. However, if the omission was caused by the placement of a wrong tax area on property that had been serviced by the taxing entity for many years, the entity might determine that the error had no effect or a nominal effect on its local growth calculation. The question of whether such value should be included as local growth is a decision for the taxing entity, not the assessor.

The Division suggests that the addendum to the certification include a description of the properties involved, the tax year or years for which the entity’s mill levy was omitted, and a statement explaining why it was omitted. In addition, the statement should recommend that the entity consult with its attorney to determine if the value should be included in the calculation of its fiscal year spending and property tax limits pursuant to § 20(7)(b) and (c), art. X, COLO. CONST.

The collection of omitted revenue is discussed in Chapter 3, Specific Assessment Procedures, under Omitted Revenue.

NOTE: If land and/or an improvement, including real property possessory interests, was picked up as omitted property for multiple years, only the most current year’s value is reported as omitted property.

Line S – Destruction of Taxable Real Property Improvements

Certify the actual value of taxable real property improvements destroyed or demolished in the current year. Two options exist for tracking the total amount attributable to demolished and destroyed property. Option one: certify the full value of the destroyed property, not the prorated amount used for tax purposes. Option two: for the current year certify the prorated value removed from the current year’s tax roll and certify the remaining prorated value the following year; thus, the full value of the destroyed property is reported over a two-year period. If the assessor chooses to recognize titled manufactured homes as new construction, titled manufactured homes that move out of the county must be recognized as destroyed property.

Line T – Disconnections/Exclusions

Certify the actual value of taxable real property disconnected from the boundary of a municipality and the actual value of taxable real property excluded from the boundary of a special district. The amount is certified ONLY to the taxing entity that is affected.

The actual value of the taxable real property within the area disconnected or excluded is not reported in the current year’s actual valuation for the taxing entity that removed the property from its boundaries.

Property owners may be liable for taxes levied to retire outstanding indebtedness. 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, 31-12-705, C.R.S. In the case of property excluded from a special district, 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. When a bond exists, the taxable value of the property within the area disconnected or excluded may have to be separately certified to the taxing entity each year until the bond is retired. Please refer to the section below on “subdistricts” for further discussion of this issue.

Line U – Previously Taxable Property

Certify the actual value of real property that changed from a taxable status to an exempt status (previously taxable). The value reflected is for the current year only. To simplify the reporting of this value, it is recommended that assessors report the full-year value of the property that changed taxable status rather than certifying prorated values over two years. In some instances, the property exempted is only a portion of the entire property.

The actual value of real property possessory interests is included in this amount if an agreement (lease/permit) is not renewed. The value reported is for the current year only and is the full value of the possessory interest.

The actual value of real property that becomes exempt pursuant to a lease with the state, a political subdivision, or a state supported institution of higher education is included in this amount. See § 39-3-124(1)(b)(I), C.R.S., for details regarding this exemption.

School District Elections

Line V – Total Actual Value of All Taxable Property

No later than August 25, the assessor certifies to school districts the total actual value of all taxable real and personal property, including taxable real and personal property possessory interests, § 39-5-128(1), C.R.S. This information is utilized by school districts for election purposes.

• If a school district gives a personal property exemption as allowed under the Colorado Constitution, the actual value must reflect that action, but the reduction must also be itemized on the certification. Section 22-54-106(9), C.R.S., provides that any such exemption granted by a school district will not result in an increase to the state’s share of the total program.

Line W - HB21-1312 Assessed Value of Exempt Business Personal Property

The tax revenue lost due to the exemption will be reimbursed to the taxing entities by the County Treasurer.

Law Enforcement Authorities

By August 25 the assessor certifies to each law enforcement authority the total assessed value of all taxable property within the territorial limits of the authority and the mill levy that when applied to such value, [exclusive of the assessed value attributable to annexations or inclusions (real and personal property); new construction; increased volume of production by a producing mine if the mine is wholly or partially within the authority and if such increased production causes an increase in the level of services provided by the authority; and previously exempt federal property which becomes taxable if such property causes an increase in the level of services provided by the authority], will generate the same property tax revenue as was generated in the previous year.

Any authority that proposes to certify a mill levy in excess of the previous year’s mill levy, must submit the proposal at an election, § 30-11-406.5, C.R.S. There are seven law enforcement authorities in Colorado. They are located in Weld (3), Arapahoe, Douglas, Montezuma, and Jefferson counties.

Subdistricts

A subdistrict is a geographic area created when the mill levy certified for a portion of a taxing entity is different from the mill levy certified for the remainder of the taxing entity. Subdistricts are formed in two ways:

1. A subdistrict is formed when property is detached from a taxing entity, and the entity certifies a bond or other debt service levy to retire debt incurred prior to the exclusion or disconnection. This type of subdistrict is no longer part of the parent district. The property owners cannot vote in parent district elections, they do not receive the district’s services, and they are not responsible for payment of the district’s general operating levy or other non-debt service levies. However, the property owners remain liable for any debt incurred prior to the exclusion or disconnection.
2. Pursuant to § 32-1-1101(1)(f), C.R.S., a title 32 special district may impose a mill levy on a portion of the district (subdistrict) that is different from the mill levy on the remainder of the district. This authority was granted with the intent of allowing an area located within a district, or an area to be included in a district, to fund the construction or operation of services in that area without imposing the same burden on the entire district. Owners of property in other areas of the district are entitled to use the services of the subdistrict without paying additional fees. The subdistrict is considered an independent quasi-municipal corporation, but its board of directors is the board of the parent district.

When a subdistrict is created by either method, the assessor must create a new tax area for the subdistrict. The following example illustrates the administration of a subdistrict created when property was disconnected. The administration of a subdistrict created pursuant to § 32-1-1101(1)(f), C.R.S., is similar.

Example:

The assessed value of the property within the boundary of a municipality is $9,569,300 and the actual value is $65,622,500. Several properties were disconnected from the municipality. The boundary of the original tax area is changed and a new tax area is established for the excluded area. The disconnected property has an assessed value of $46,420 and an actual value of $686,180.

The current year’s certification of values reflects:

• The total assessed value reported to the municipality in the 5.5 percent revenue limit section of the form is $9,522,880. $64,936,320 is reported as the total actual value for local growth (TABOR). This area is identified as Tax Area 9.
• $686,180 actual value is reported to the municipality as “disconnected” property for local growth (TABOR).
• The bond mill levy is also extended against the $46,420 assessed value of the property disconnected from the municipality. This area is now identified as Tax Area 22.
• This information must be provided to the municipality until the bond is retired.

Growth Valuation for Assessment

Assessors of counties that operate under the provisions of § 39-5-132(3), C.R.S., must, by August 25, notify the county commissioners of:

1. The growth value for assessment of the county,
2. The percentage that such growth valuation for assessment bears to the total valuation for assessment of the county,
3. The portion of such growth valuation for assessment that is attributable to newly constructed taxable buildings within the boundaries of each taxing authority in the county, and
4. The percentage that such portion bears to the total valuation for assessment of each taxing authority in which such newly constructed taxable buildings are located.

Balancing the Certification of Values

The following areas within the certification must balance:

• Current Year's Assessed Value certified to the county = Sum of Current Year's Assessed Values certified to the school district(s)
• Items certified to county for 5.5% Limit = Sum of Items certified to school(s) for 5.5% Limit

*This works for new construction, increased production of producing mines, previously exempt federal property, and new primary oil or gas production.

The following areas of the certification must balance to the abstract:

• Total taxable value of school districts from the Summary of CBOE Changes page and/or the School District page of the abstract = Current Year's Assessed Value certified to the county
• Total taxable value of school districts from the Summary of CBOE Changes page and/or the School District of the abstract = Sum of current Year's Assessed Value certified to school district(s)
• Total taxable value for municipalities from the Cities and Towns page of the abstract = Sum of Current Year's Assessed Value certified to municipalities
• Tota new construction shown in the new construction column on the New Construction page of the abstract = Total New Construction certified to the county
• New Construction shown in the new construction column for each school district on the New Construction for School District page of the Abstract = Total New Construction certified to each school district

Assessor’s Filing Requirements

Pending Board of Assessment Appeals and Court Cases

Assessors are encouraged to notify taxing entities of pending Board of Assessment Appeals and court cases of both state assessed and locally assessed properties that may affect the value and taxes. This action can assist the taxing entities in planning for value reductions and/or abatements. This can be achieved by including a note with the August 25 certification and the January 3 recertification.

Non-School Taxing Entities

No later than August 25, a copy of the certification of valuation (DLG 57) for non-school taxing entities is sent to each taxing entity and the Division of Local Government, § 39-5-121(2), C.R.S. Taxing entity names and addresses may be obtained from the Division of Local Government website.

The address for the Division of Local Government is:

Division of Local Government
1313 Sherman Street, Room 521
Denver, CO 80203
Phone: 303-864-7720

School Districts

No later than August 25, the assessor certifies the total valuation for assessment to each school district. A copy of the certification of valuation (DLG 57) for school districts is also sent to the Colorado Department of Education, § 39-5-128(1), C.R.S. The Department of Education utilizes the assessed valuations to calculate state aid to schools under the Public School Finance Act of 1994, § 22-54-101, C.R.S., et. seq. Addresses for the school districts may be obtained from the Department of Education.

The address for the Colorado Department of Education is:

Department of Education
Public School Finance Unit
Attn: Gene Fornecker
201 East Colfax Avenue, Room 206
Denver, CO 80203
Email: fornecker_g@cde.state.co.us
Phone: 303-868-2447

Recertification of Values

The assessor is required to send a single notification prior to January 3 if value changes are made after the August 25 certification deadline, § 39-1-111(5), C.R.S.

In the short time-frame between the recertification of values and certification of levies deadlines, taxing entities must review the recertified values, review the budget, review the 5.5 percent revenue limit and TABOR calculations, making adjustments as necessary, in order to certify the levy. In an effort to assist the taxing entities with this challenge, the Division recommends that the assessor recertify values to taxing entities by December 1.

Senate Bill 21-130 authorizes any county, municipality, or special district to exempt up to 100% of any business personal property for the property tax year commencing on January 1, 2021. This will require any of the entities to notify the assessor if they are going to exempt a portion of, or 100% of, the business personal property value. Any exemption granted will require the assessor to calculate the current year’s gross total taxable assessed valuation and current year’s net total taxable assessed valuation and remove the value from these two values. Additionally, the assessor will be required to take exemptions per Senate Bill 21-130 under consideration when calculating the aggregate value for House Bill 21-1312.

Pursuant to § 39-1-111.5, C.R.S., any local government may approve a temporary property tax credit or temporary mill levy reduction to provide property tax relief. The temporary reduction must be certified annually, by the local government, on its certification to the board of county commissioners. This does not apply to school districts.

Recertified Data

The certification process followed in August is duplicated in December. The amounts reported for items that are tied to a specific tracking period, such as revenue from omitted property and abated/refunded revenue, are not changed for the December recertification.

The balancing processes used for the August certification of values are used for the recertification of values. Dating the recertification forms will assist the taxing entities and the Division of Local Government in identifying the most current data. If the alternate protest and appeals procedure is used, the county board of equalization adjustments are reflected in the recertification data.

Filing Requirements

As a courtesy, the Division recommends that each taxing entity receive a copy of the recertification because the county commissioners will not adjust a tax rate on behalf of a taxing entity. Addresses for taxing entities may be obtained from the Division of Local Government’s web site.

Contact the Department of Education for school district addresses.

Copies of the December recertification of values are sent to:

All entities:
Board of County Commissioners

All non-school district entities:
Division of Local Government
1313 Sherman Street. Room 521
Denver, CO 80203
Email: victor.chen@state.co.us
Phone: 303-864-7720

All school districts:
Department of Education
Public School Finance Unit
Attn: Gene Fornecker
201 East Colfax Avenue, Room 206
Denver, CO 80203
Email: fornecker_g@cde.state.co.us
Phone: 303-868-2447

Levy Adjustments

Upon being notified that the valuation has changed, the county commissioners or equivalent body shall adjust the levies certified by affected taxing entities to ensure compliance with the 5.5% limit found in § 29-1-301, C.R.S., if applicable, and may make adjustments in order that the same amount of revenue be raised. A copy of any adjustment to tax levies is transmitted to the Administrator and assessor, § 39-1-111(5), C.R.S. No statutory authority exists to adjust levies to conform to § 20, art. X, COLO. CONST. The intent of this provision is as follows:

1. To require county commissioners, or the equivalent body in Denver or Broomfield, to lower the mill levy if the valuation increases. This serves to prevent excess revenues over what was previously calculated by the Division of Local Government for the 5.5% limit.
   
   AND/OR
    
2. To give permission to increase the mill levy if the valuation decreases to ensure the allowed revenues are derived under the 5.5% limit as calculated by the Division of Local Government. However, § 20, art. X, COLO. CONST, prohibits increasing the mill levy without voter approval.

Value changes subsequent to the compilation of the abstract and the certification of values are usually the result of prorations caused by titled manufactured home movement, changes in taxable status of real property, demolition of real property, discovery of omitted property, and correction of errors. All such value changes are listed and explained in an internal supplemental record. Changes occurring after the August 25 certification are tracked and a final certification is made to the affected taxing entities before January 3, for 2024 only. At the time of the certification of values to taxing entities, the assessor also notifies the entities that levies must be certified to the board of county commissioners no later than January 10, for 2024 only, § 39-5-128, C.R.S.

It is recommended that each assessor maintain a record of all changes in the assessment roll to provide a tool for balancing the valuations between the abstract, certification of values, and the tax warrant. It is much easier to pull a file to refresh one’s memory than to try and recreate the various changes which may have occurred between the three reports.

Taxing Entities Calculate the Limitations

As previously mentioned, much of the information furnished by the assessor through the certification of values process is used by taxing entities to determine legal increases in revenue and spending. A worksheet is available from the Division of Local Government that details the steps each taxing entity must use to determine its legal revenue and spending limits as required by the Colorado Constitution and Colorado statute.

Certification of Levies

No later than December 15, each city, town, school district, and special district certifies its tax levy to the board of county commissioners, § 39-5-128(1), C.R.S. The county board, or its authorized party, certifies and orders into its record the levy for all towns, cities, school districts, and special districts that are in the county. No later than December 22, the county board certifies all levies to the assessor and mails a copy of the certification to the Property Tax Administrator, the Division of Local Government, and the Department of Education, §§ 39-1-111(1) and (2), C.R.S. The Certification of Levies and Revenue form (3-CLR-01) that is used to report the levies, is developed by the Division of Property Taxation.

In the event that a levy is not certified to the assessor, it is the duty of the assessor, upon direction of the Division of Local Government, to extend the levies of the previous year, subject to the limitations prescribed in § 29-1-301, C.R.S., (5.5% limit), § 39-1-111(3), C.R.S. Due to the limitations described in § 20, art. X, COLO. CONST., the Division recommends that the assessor discuss the issue with the county commissioners and county attorney to determine the best course of action. Neither the county commissioners nor the local board of education has the authority to modify the general fund levy of a school district, § 22-40-103, C.R.S. In the event that a school district should have certified a bond levy, but failed to do so, refer to § 22-42-118, C.R.S., for direction.

Tax Increment Financing Authorities

Urban renewal authorities (URA) and downtown development authorities (DDA) and county revitalization authorities (CRA) are the only bodies authorized to implement tax increment financing (TIF). These authorities receive the property tax revenue from the increment valuation, which is the portion of value that exceeds the base valuation of the tax increment area, §§ 31-25-107(9)(a) and 31-25-807(3)(a), and 30-31-109(13)(a), C.R.S. The revenues received by taxing entities that include a TIF area within their boundaries are calculated on the current year’s net assessed valuation. The net assessed valuation is the difference between the current year’s gross assessed valuation and the increment valuation.

When completing the Certification of Levies and Revenue form, the assessor must use the gross assessed valuation and total revenue for the county and each city, town, school district, and special district as if the TIF district did not exist. Some assessors in the past have mistakenly reported the net valuation. This causes problems at the Division as the computer program used to compile values for all counties, automatically deducts the valuation for the TIF. This, in essence, causes the TIF value to be deducted twice. The increment valuation and the revenue due to the tax increment financing authority for each taxing entity affected are reported on the last page of Form 3-CLR-01.

Tax Warrant

As soon as practicable after taxes for the year have been levied, but no later than January 24 of the following year, the assessor delivers the tax warrant to the treasurer. The tax warrant is a public document, and the treasurer must make it available to the general public. The assessor also retains one or more copies of the warrant, § 39-5-129, C.R.S.

Balancing Tax Warrant to Certification

The best practice is not to make changes to the tax warrant file after the December certification. Abatement petitions and orders from appeals should be processed after the warrant is published if at all possible. Any unavoidable changes between the value reported on the January 3, for 2024 only, recertification report and the tax warrant should be reported to the Division of Local Government to ensure proper calculation of the 5.5% limit for taxing entities.

Abstract and entity reports should be run frequently to maintain tight data control.

• Total mill levy reflected in the Certification of Levies and Revenue Report for each entity = Total mill levy for each entity listed in the tax warrant
• Total assessed value for each entity as of the January (for 2024 only) recertification = Total assessed value for each entity listed in the tax warrant

Mandatory Information

The tax warrant lists the owners of taxable property in the county, the class and valuation for assessment of such property, the individual levies extended against the valuation, and the total amount of taxes due on each property. At the end of the warrant, the aggregate of all taxes levied shall be totaled, balanced, and prorated to the funds of each levying entity, and the treasurer shall be commanded to collect all such taxes, § 39-5-129, C.R.S.

Temporary Tax Credit or Mill Levy Reduction

Taxing entities may approve and enact a temporary property tax credit or mill levy rate reduction for effecting refunds to taxpayers. If a taxing entity utilizes a temporary property tax credit or mill levy rate reduction, the assessor must itemize the gross mill levy, and the temporary tax credit or mill levy rate reduction by footnote, § 39-1-111.5, C.R.S.

Attachment of Lien

Property taxes become due and payable one year after the lien attaches. The lien of general taxes for the current year, including taxes levied against new construction in severe growth counties under the provisions of § 39-5-132, C.R.S., attaches to all taxable property on the assessment date. Taxes levied on real and personal property, together with any delinquent interest, advertising costs, and fees prescribed by law, shall be a perpetual lien on the property, and such lien shall have priority over all other liens until the taxes, delinquent interest, advertising costs, and fees are paid in full, § 39-1-107, C.R.S.

The fact that the tax lien attaches on the assessment date, January 1, provides the ability to prorate and/or collect taxes during the current year, before the taxes are actually levied. This applies to:

• Titled manufactured homes removed from the state, § 39-5-205, C.R.S.
• Real property destroyed after the assessment date, § 39-5-117, C.R.S.
• Real property gaining or losing exempt status, §§ 39-3-129, 130, 131, and 132, C.R.S.
• Removal of property from state or transfer of personal property, § 39-10-113, C.R.S.

Exceptions to lien attaching on assessment date:

Personal property brought into the state, § 39-5-110(1), C.R.S. The property tax lien attaches the assessment year following the year the property is put into use. The exceptions are mobile equipment and drilling rigs, which are apportioned based on the number of days the property is located in each Colorado county, §§ 39-5-113 and 113.3, C.R.S.

Titled manufactured homes brought into the county from out of state, § 39-5-204, C.R.S. If a titled manufactured home is brought into the county from out of state after January 1, but before December 16, the lien attaches on the date of location in the county.

Possessory interest:

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

Treasurer’s Responsibility

The county treasurer is commanded to collect all taxes listed in the tax warrant, § 39-5-129, C.R.S. The treasurer does not have discretion to determine whether or not taxes should be adjusted without statutory authority, People v. Pitcher, 61 Colo. 149 (1916). An informality in complying with the requirements of the delivery of the tax warrant or errors that may exist in the warrant do not invalidate the warrant, §§ 39-5-130 and 39-10-101(3), C.R.S., and Haley v. Elliott, 20 Colo. 379 (1894).

Changes to Tax Warrant

When the intent can be determined, omissions and errors may be supplied or corrected by the assessor at any time before the tax warrant is delivered to the treasurer or by the treasurer at any time after the tax warrant is delivered to the treasurer, § 39-5-125, C.R.S. Section 39-10-101(2), C.R.S., gives the treasurer the authority to add omitted property to the tax warrant after the tax warrant is delivered. The treasurer may also correct an error in the name of a person owing taxes and collect the taxes from the person intended, § 39-10-101(3), C.R.S. The treasurer may not correct valuation errors in the tax roll without an official document such as an abatement petition, Board of Assessment Appeals order, or court order.

A certified copy of the order or judgment of the BAA or district court may be presented to the treasurer for a refund of taxes and interest. The document is used by the treasurer as authority to change the value listed on the tax warrant. The document becomes a part of the treasurer’s records, § 39-8-109, C.R.S. An abatement petition signed and approved by the appropriate parties gives the treasurer authority to change the value listed on the tax warrant, § 39-10-114, C.R.S. The petition becomes a part of the treasurer’s records.

After a one-year period, uncollectible taxes levied on personal property, including titled manufactured homes, may be canceled by the board of county commissioners. When any real property has been stricken off by virtue of a tax sale and there has been no transfer by the county of a certificate of purchase, the taxes may be determined to be uncollectible after six years and may be canceled by the board of county commissioners, § 39-10-114(2), C.R.S. The commissioners’ resolution becomes a part of the treasurer’s records.

Addendum 7-A, Attorney General’s Opinion

Addendum 7-A, Attorney General's Opinion