Volume 2: Administration All Chapters

Assessor’s Duties

The county assessors are responsible for the management and operation of the assessor’s office. Their goal is to produce the tax warrant with fair and equalized property values. The county assessor’s office must be located at the county courthouse or at a location in the county seat provided by the board of county commissioners. The assessor may keep one or more offices outside of the county seat, in addition to the office located in the county seat. The additional location may be kept only if the board of county commissioners makes office space or funding available, § 30-10-803, C.R.S.

A complete list of all Colorado county assessors is shown in Addendum 1-A, List of Assessors. More information on the Colorado Assessors’ Association (CAA) such as officers and assessors’ districts can be found on the CAA website at Colorado Assessors' Association.

Discover – List – Classify – Value

The major duties of an assessor can be categorized as discovering, listing, classifying, and valuing all taxable real and personal property and all property granted exemption by the Division of Property Taxation that is located within the county on the assessment date. These categories are often referred to as the assessment function, § 39-5-101, C.R.S.

Some property in the county such as state assessed properties are valued and apportioned to each county by the Division of Property Taxation (Division), article 4 of title 39, C.R.S. Refer to Chapter 11, State Assessed Property for more details. Other property is classified by the assessor or by the Division as exempt, article 3 of title 39, C.R.S. Please see Chapter 10, Exemptions for more information regarding this class of property.

The discovery of property is accomplished by examining the records of the county clerk and recorder; physically reviewing all property; examining building permits; and reviewing those listings of business firms contained in telephone books, business journals, and other documents.

The listing phase of the assessment function includes describing and identifying the physical location of property. Listing also includes the maintenance and updating of records linking properties to respective owners so that a current assessment file is created.

Classification consists of determining the correct class for all property located in the county according to its use on the assessment date. The proper classification will have a bearing on both the method used to value the property and the assessment rate applied. Classification is also important when properties are compared in both the appeals and the valuation processes. Refer to Chapter 6, Property Classification Guidelines and Assessment Percentages for detailed information on property classes. Division of Real Estate at 303-894-2166 prior to the meeting to confirm the meeting date and location.

Property is valued by the assessor following valuation criteria as stipulated by statute and by using manuals, appraisal procedures, and instructions issued by the Property Tax Administrator (Administrator). The valuation phase of the assessment function includes notifying the taxpayer of the value and the administrative remedies that must be followed if the taxpayer disagrees with the assessor’s valuation.

Certification of Appraisers

All county real property appraisal staff are required to be Colorado licensed or certified appraisers, § 12-10-606(4)(A), C.R.S. The requirements, examination, and licensing are under the administration and supervision of the Colorado Board of Real Estate Appraisers (Board).

Additionally, the Board is empowered to determine whether an applicant for licensure or certification possesses the necessary qualifications for licensure or certification required. The Board may consider such qualities as the applicant’s fitness and prior professional licensure and whether the applicant has been convicted of a crime, § 12-61-712(1), C.R.S.

Appraisal staff members have two years from the date of hire to become licensed or certified. For more information, refer to Addendum 1-B, Certification of Real Estate Appraisers.

Taxpayers’ Remedies

Notices of value and protest forms are mailed to property owners annually, § 20, art. X, COLO. CONST. and § 39-5-121, C.R.S. A taxpayer may also request a notice of valuation by electronic transmission, § 39-5-121, C.R.S. Assessors review real and personal property protests during the months of May and June. The assessor must respond to the property owner’s protest in writing. Refer to Chapter 5, Taxpayer Administrative Remedies, for more information on taxpayers’ remedies.

Abstract of Assessment

The assessor prepares an Abstract of Assessment report (a summary of assessed value by class and subclass of property) which is for official use by the State Board of Equalization and the Division, § 39-5-123, C.R.S.

The assessor files the Abstract of Assessment (abstract) with the Property Tax Administrator no later than August 25. If the county is required to, or has chosen to follow the alternate protest period procedures, the final Abstract of Assessment is due no later than November 21. For those counties following the alternate protest period, the Division requests that the county file a preliminary abstract no later than August 25.

The abstract serves many other purposes. It contains the aggregate assessed valuation for assessment of all property by class and subclass. The data is the basis for the certification of values to the various taxing entities. The abstract data collected from each county is included in the Annual Report to the Governor and the General Assembly.

Other groups including the General Assembly and the general public use the information for a variety of purposes. The abstract values, with changes, serve as the basis of the next year’s tax warrant. Additional information on the abstract can be found in Chapter 7, Abstract, Certification, and Tax Warrant.

Certification of Value

On August 25, the assessor certifies total values to the Department of Education and the various taxing entities within the county, § 39-5-128, C.R.S. The entities use the data to calculate their property tax rates (mill levies), calculate revenue and spending limitations, and decide whether or not they must ask the electorate for additional funds. If valuation changes occur after certification, the assessor must notify the entities of these changes prior to January 3, for 2024 only, § 39-1-111(5), C.R.S. Changes between the abstract and tax warrant should be documented so that the assessor can justify those changes, if requested to do so. For more information see Chapter 7, Abstract, Certification, and Tax Warrant.

Tax Warrant

January marks the end of one assessment year and the beginning of another. On January 24, for 2024 only, the assessor delivers the prior year’s tax warrant to the treasurer for collection. The warrant lists all property owners’ names, property legal descriptions, assessed valuation attributable to land, improvements, and personal property, and the taxes due, § 39-5-129, C.R.S. The treasurer is then responsible for collection of all taxes listed on the warrant, § 39-5-129, C.R.S. For additional information on the tax warrant, refer to Chapter 7, Abstract, Certification, and Tax Warrant.

Public Records

The statutes declare that all public records shall be open for inspection by any person at reasonable times, except as otherwise provided by law, § 24-72-201, C.R.S. The assessor may implement inspection rules which protect the records and prevent unnecessary interference with the regular discharge of the duties of the assessor’s office, § 24-72-203, C.R.S.

Public records include all writings kept by the state or political subdivision (county) for use in performing functions that are required by law or administrative rule § 24-72-202(6), C.R.S. Writings include all books, papers, maps, photographs, cards, tapes, recordings, or other documentation, regardless of physical form or characteristics, but does not include computer software, § 24-72-202(7), C.R.S.

If records are in active use or in storage, and therefore, not available for inspection, the assessor shall notify the applicant in writing if requested. If requested by the applicant, the assessor shall set a date and hour within three working days at which time the records will be available.

If the request involves a large volume of records and the assessor is unable to provide them within three working days due to extenuating circumstances, the assessor will provide the records within seven working days, § 24-72-203(3), C.R.S. Records may be provided in a digital, searchable or sortable format if the custodian of the record has the ability to do so, § 24-72-203(3.5)(a), 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 seven (7) 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. 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, § 39-5-121.5, C.R.S. No transmission fees may be charged for the transmission of public records via electronic mail, § 24-72-205(1)(b), C.R.S.

The assessor may 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 assessor is not allowed 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 amendment to § 39-5-121.5, C.R.S., in HB 00-1268, provides a mechanism for taxpayers to acquire the data used to calculate the value of their properties outside the public records statutes. In essence, it gives assessors seven (7) working days to prepare the data and send it to the taxpayer or agent instead of the three working days if records are not readily available, or seven (7) working days under extenuating circumstances provided in § 24-72-203, C.R.S. The amendment should be read in concert with article 72 of title 24, C.R.S.

NOTE: The public records statutes presently provide that all public records must be open for inspection by anyone at reasonable times; that officials should take measures to assist the public in locating any public record; and that officials must ensure public access to the public documents. If the records are not readily available at the time of the request, the custodian must notify the applicant of this fact. If the applicant requests an appointment, the custodian must set a date and hour for the inspection to take place. The reasonable time stated in the statute is within three working days unless extenuating circumstances exist as outlined in the statute. If extenuating circumstances exist, the inspection must occur within seven working days, §§ 24-72-203(1) and (3), C.R.S.

Records Request of Public Officials

Public records are writings which are made, maintained or kept by the state, an agency, or political subdivision of the state for use in the performance of public functions or that they are involved in the receipt and spending of public money. When the custodian of requested public record under the Colorado Open Records Act (CORA) is an individual who is also a public official, the plaintiff bears the burden of proving that the requested records are likely public records, Denver Post Corp. v. Ritter, 255 P.3d 1083 (Colo. 2011).

Acceptance & Distribution of Electronic Records by Governmental Agencies

Each governmental agency may determine the extent to which it shall send and accept electronic records and electronic signatures and otherwise create, generate, communicate, process, store, use and rely upon electronic records and signatures, § 24-71.3-118, C.R.S. It is important to note that statute does not require a governmental agency to use electronic records or electronic signatures, § 24-71.3-118(3), C.R.S.

Legal Recognition of Electronic Records, Signatures and Contracts

A record or signature may not be denied legal effect or enforceability solely because it is in an electronic form. If the law requires a record to be in writing, an electronic record satisfies by law, § 24-71.3-107, C.R.S.

House Bill 15-1117 clarified the application of the “Uniform Electronic Transactions Act” with the addition of two definitions to § 7-90-102, C.R.S.

“Writing” or “written,” unless otherwise provided in the constituent document, includes an “electronic record” as that term is defined in the “Uniform Electronic Transactions Act,” § 24-71.3-102(7), C.R.S.

“Signature” or signed,” unless otherwise provided in the constituent document, includes an “electronic signature” as that term is defined in the “Uniform Electronic Transactions Act,” § 24-71.3-102(8), C.R.S.

Confidential Information

Unless otherwise provided by law, the assessor shall deny inspection of records containing the following information: trade secrets; privileged information; and confidential commercial, financial, geological, or geophysical data, furnished by or obtained from any person. The assessor shall also deny inspection of social security numbers unless the disclosure of such a number is required, permitted, or authorized by state or federal law, §§ 8-2-128(2), 24-72-204(3)(a)(IV), 39-1-104(16)(c), 39-5-115(2) and 120, 39-7-101(4), and 39-14-102(1)(c), C.R.S.

The individual Real Property Transfer Declaration forms are subject to confidentiality requirements as provided by law. The declarations may be inspected by the grantee specified in the document, the grantor (if the grantor filed the document), the persons conducting any valuation for assessment study or their employees, and the Property Tax Administrator and Division employees, § 39-14-102(1)(c), C.R.S. Although the use of the information derived from the forms to assist the assessor in the valuation of property is allowed, it must be presented in such a manner that the source cannot be identified, § 39-5-121.5, C.R.S.

Manufactured Home Transfer Declaration forms are subject to confidentiality requirements as provided by law. The declarations may be inspected by the county assessor and his or her employees, the taxpayer specified in the manufactured home title application or the person that filed the declaration, and the Property Tax Administrator and Division employees, § 39-14-103(1)(c), C.R.S. The county assessor will review information derived from the declarations to properly adjust sales for sales ratio analysis for determining the value of titled manufactured homes, § 39-14-103(3), C.R.S.

Confidential information also includes detailed listings of personal property reported by a prior owner, whether or not values are included with the listing. Pursuant to § 39-5-120, C.R.S., the Personal Property Declaration Schedule and attachments are confidential documents and only the following persons have a legal right to view them:

1. The county assessor or members of the assessor’s staff
2. The county treasurer or members of the treasurer’s staff
3. The annual assessment study contractor, hired pursuant to § 39-1-104(16), C.R.S., and employees of the contractor
4. The executive director of the Colorado Department of Revenue and staff members of the Department of Revenue
5. The Property Tax Administrator and Division of Property Taxation staff
6. The county board of equalization (CBOE) and the Board of Assessment Appeals (BAA) when pertinent to a hearing or protest review
7. The person whose property is listed on the schedule
8. Personal property records ordered opened by the district court

Anyone listed above who uses the personal property schedules as part of official duties is also subject to the confidentiality provisions and may be held accountable for divulging the information on the schedule. The statutory penalties for divulging confidential information include a fine of not less than $100 nor more than $500, or a prison term of up to three months, or both as provided for in § 39-1-116, C.R.S.

Section 7602 of title 26 of the United States Code allows representatives from the Internal Revenue Service (IRS), the federal authority, to examine and/or summon certain information (including confidential declaration schedule information) that the Secretary of the Treasury or his delegate may deem as proper, related to ascertaining the correctness of any return for federal taxation purposes.

Any person that is served with an IRS summons to produce confidential records and information must timely comply or be faced with penalties as noted in 26 U.S.C. § 7604. Any person summoned to produce confidential records is released from liability, 26 U.S.C. § 7609.

The natural resources property declaration schedules and appraisal records are used for both real and personal property data. Since confidential real and personal property information is contained on both the front and back of these declaration schedules, request for non-confidential information should be directed to other public agencies which have access to this information and have the means of disclosing it to the public. These agencies include, but are not limited to, the Colorado Oil and Gas Conservation Commission, Colorado Division of Reclamation, Mining and Safety, and the Federal Bureau of Land Management.

See ARL Volume 5, Personal Property Valuation Manual, for a more detailed discussion of this issue.

Senior Citizen and Veteran With A Disability Exemption – Social Security Numbers and Application

A county treasurer, the Property Tax Administrator, state treasurer and state auditor shall keep each individual exemption application received from a county assessor confidential but may release statistical compilations or informational summaries of any information contained in exemption applications and may introduce a copy of an exemption application as evidence in any administrative hearing or legal proceeding in which the accuracy or veracity of the exemption application is at issue so long as neither the applicant’s social security number nor any other social security number is divulged, § 39-3-205(4)(a)(I)(B)(II), C.R.S.

Sections 8-2-128(2) and 24-72.3-102(2), C.R.S., prohibit a public entity from requesting a person’s social security number over the telephone, internet, or by mail, unless the public entity determines that receiving the social security number is required by federal law or is essential to the provision of services by the public entity. This directly impacts the senior citizen and veteran with a disability exemptions. It is the Division’s position that the social security number requirement is essential to the administration of the senior citizen and veteran with a disability exemption programs. Authorization to require the social security numbers of the applicant and each occupant is provided by §§ 39-3-205(2)(a)(I) and (III), C.R.S. Social security numbers obtained through the administration of these programs, or for other reasons, must remain confidential; they cannot be publicly displayed or otherwise made available to the general public, § 6-1-715, C.R.S.

Additionally, an assessor, the Property Tax Administrator, county treasurer, state treasurer and state auditor shall not provide anyone a listing of individuals who have applied for an exemption or any other information that would enable a person to easily assemble a mailing list of those who have applied for an exemption, § 39-3-205(4)(b), C.R.S.

Public Dissemination of Personal Information – Protected Persons and Election Workers

Pursuant to §§ 18-9-313(2.7) and 18-9-313.5(2)(a) C.R.S., it is unlawful for a person to knowingly make available on the internet personal information about either a protected person or an election worker, as well as their immediate family, if the dissemination of personal information poses an imminent and serious threat to the person’s safety or the safety of the their immediate family and the person making the information available on the internet knows or reasonably should know of the imminent or serious threat.

A protected person, as defined by §18-9-313(1)(n), C.R.S., means an educator, a code enforcement officer, a human services worker, a public health worker, a child representative, a health-care worker, a reproductive health-care services worker, an officer or agent of the State Bureau of Animal Protection, an animal control officer, an office of the Respondent Parents’ Counsel Staff member or contractor, a judge, a peace officer, a prosecutor, a public defender, firefighter, or a public safety worker.

Immediate family, as defined in §§18-9-313(1)(f) and 18-9-313.5(1)(b), C.R.S., means a person’s spouse, child, or parent or any other person who lives in the same residence as the qualified person.

An exempt party, as defined in §§ 18-9-313(1)(c) and 18-9-313.5(1)(d), C.R.S., may access a record that includes information otherwise subject to redaction, pursuant to §§ 18-9-313(2.8)(b) or 18-9-313.5(3)(b), C.R.S., if the person seeking access to the record provides evidence and an affirmation under penalty of perjury that they are an exempt party.

The Division recommends that assessors consult the county attorney for guidance on how to best implement the provisions of these statutes. County assessors may wish to develop a standard form for qualified persons to request that their and/or their immediate family’s personal information be withheld from the county’s websites or any databases made available to the public.

Address Confidentiality Program for Victims of Domestic Violence

The Address Confidentiality Program was created to protect the confidentiality of the actual address of a relocated victim of domestic violence, a sexual offense or stalking and to prevent the victim’s assailants or potential assailants from finding the victim through public records, § 24-30-2104, C.R.S. The program establishes a substitute address for a program participant to be used by state and local government agencies whenever possible to permit agencies access to the participant’s actual address when appropriate; to establish a mail forwarding system for program participants; and to ensure that there is adequate funding to pay the program costs for all persons who apply for the program, § 24-30-2102(2), C.R.S.

Pursuant to § 24-30-2108(1), C.R.S., an address confidentiality participant is responsible for requesting a state or local government agency to use the participant’s substitute address. The request may be in writing and may include a valid address confidentiality program authorization card. It is unlawful for a person to knowingly make available on the internet personal information about a participant in the address confidentiality program, § 18-9-313(2.5), C.R.S.

Retention of Records

The state archivist is responsible for the administration of a program to conserve the public records of the state of Colorado and political subdivisions. Applicable statutes are found in the state archives and public records law, §§ 24-80-101 through 113, C.R.S.

The state archivist drafts a records retention and disposition plan for political subdivisions, § 24-80-102(3), C.R.S. Records maintained by county officials are subject to this plan. The plan indicates which office records are permanent and which are not permanent. Records considered not permanent are assigned a minimum retention period which is usually six years plus the current year. The minimum retention period schedule for the assessor’s records can be found in Addendum 1-C, Records Retention.

The schedule is a set of recommendations that were developed through the cooperation of the state archivist, the Division of Property Taxation, and county assessors. Records may be kept longer than recommended if the assessor determines that a longer retention period is necessary; however, records may not be destroyed sooner than allowed. Each year the state archivist will post on the State Archives website permission for the county assessor to destroy or dispose of specified items which are not permanent records. It is emphasized that the assessor may not destroy records unless authorized by the state archivist to do so. Additionally, the assessor should not destroy records that pertain to any pending case, claim, action, or audit even though permission has been granted by the archivist.

It is important for the assessor to establish a plan for record retention as well as a plan for destruction of records. Effective August 4, 2004, each public and private entity in the state that uses documents during the course of business that contain personal identifying information shall develop a policy for the destruction or proper disposal of paper documents containing personal identifying information such as a social security number; a personal identification number; a password; a pass code; an official state or government-issued driver’s license or identification card number; a government passport number; an employer, student or military identification number or a financial transaction device, §§ 6-1-713(1) and (2), C.R.S. A recommended retention and destruction schedule for senior citizen and veteran with a disability applications and related documents is provided in Addendum 1-C, Records Retention.

General guidelines are found in Addendum 1-C, Records Retention. Each assessor should periodically review the record retention and disposition plan. The assessor should document records destroyed, the means of disposition, and file with the annual letter of permission.

Oath of Office - Bond

When inaugurated into office, assessors subscribe to an oath or affirmation that pertains to the faithful performance of all duties of the office, § 30-10-801, C.R.S.

The elected assessor must acquire bond with two or more sufficient bondsmen at a minimum level of $6,000. In lieu of the bond, a county may purchase crime insurance coverage in an amount not less than $10,000 on behalf of the assessor to protect the people of the county from any malfeasance on the part of the assessor while in office, § 30-10-801(2), C.R.S. The bond assures that the duties are performed according to law and to the satisfaction of the board of county commissioners, § 30-10-801, C.R.S.

Appointment of Deputy

The county assessor may appoint a deputy, § 30-2-104(1)(a), C.R.S.

Legal Representation

Any county officer may request a written opinion on any question regarding the duties of his or her office. Upon the request of a board of county commissioners or city council, the district attorney may represent a county officer in the defense of any civil suit or civil proceeding brought against the officer if such action directly relates to the duties of the officer, § 20-1-105, C.R.S.

County Fiscal Policies

Among other duties, county commissioners are responsible for the financial position of the county. This includes preparation and maintenance of the county budget, expenditure approval, personnel classification and compensation plans, and insurance plans as found in part 1 of article 11 of title 30, C.R.S.

Budget and Warrant Expenditure Approval

Annually, each assessor makes appropriate, documented budget recommendations to the board of county commissioners for the operation of the office. The assessor’s request reflects reasonable and necessary expenses that will be incurred in the performance of statutory duties. The commissioners’ budget-making power is presumed to be a valid exercise of the powers granted by statute. The board of county commissioners is empowered to examine and settle all accounts of the receipts and expenses of the county. This means that every warrant of the assessor’s office is subject to the board’s approval, §§ 30-10-803 and 30-11-107(2)(a) and (b), C.R.S.

The Division of Property Taxation is available to help assessors determine workforce needs and subsequent budgetary requirements.

Forty-Hour Week

Under § 30-2-104, C.R.S., county commissioners may adopt classification and compensation plans for all county employees paid by the county. The plans are to include workweek formulas of not less than forty hours. Once the plan is accepted by an elected official, it becomes binding upon each employee in that office.

Assessor Compensation Plan

Each assessor is paid a salary that is set by the General Assembly. Each county is classified into one of six categories, and statutes define an assessor’s salary base for each category, §§ 30-2-102(1) and (2), C.R.S.

The salaries cannot be increased or decreased during the term of office to which the assessor has been elected or appointed, § 30-2-102(3)(e), C.R.S., except as provided in § 30-2-102(3)(f), C.R.S., which allows public officials in categories III, IV, V, and VI counties to elect to lower their salary by 50%. For additional information regarding the statutory duties of public officials, refer to Addendum 1-D, Public Officials.

With the passage of HB 16-1367, the categorization of counties was revised for the purpose of establishing the salaries of county officers whose terms of office begin on or after January 1, 2016. The following table illustrates the counties that are included in each category for this purpose pursuant to § 30-2-102(2.3)(a), C.R.S. 

Category I-A

• Adams
• Arapahoe
• Boulder
• Douglas
• El Paso
• Jefferson
• Larimer
• Pueblo
• Weld  

Category I-D

• Mesa

Category II-A

• Eagle
• Garfield
• La Plata
• Routt
• Summit

Category II-C

• Fremont
• Pitkin

Category III-A

• Archuleta
• Chaffee
• Clear Creek
• Delta
• Gunnison
• Moffat
• Montezuma
• Montrose
• Morgan
• Ouray
• Park
• Rio Blanco
• San Miguel
• Teller

Category III-B

• Alamosa
• Gilpin
• Grand
• Logan

Category III-C

• Las Animas
• Otero
• Rio Grande

Category IV-A

• Custer
• Prowers

Category IV-B

• Kit Carson
• Lake
• Washington

Category IV-C

• Huerfano
• Yuma

Category V-A

• Baca
• Conejos
• Costilla
• Hinsdale
• Lincoln
• Mineral
• Phillips
• Saguache
• San Juan

Category V-B

• Crowley

Category V-C

• Bent
• Dolores

Category V-D

• Cheyenne

Category VI-C

• Jackson
• Sedgwick

Category VI-D

• Kiowa

The General Assembly may move a county to any of the categories for which salaries are specified above to another category. Any movement within the categories can be made after due consideration has been given to the variations among the counties including population, the number of persons residing in unincorporated areas, assessed valuation and such other factors as may be relevant to reflect the variations in the workloads and responsibilities of county officers and the tax resources of the several counties, § 30-2-102(1.5)(b), C.R.S.

Prior to January 1, 2018, and prior to January 1 each two years thereafter, the Director of Research of the Legislative Council shall adjust the amount of each annual salary in each category specified above 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. The adjustments are to be posted on the General Assembly’s website.

Other Property Tax Administrative Agencies

Other agencies and boards may make decisions that affect various actions taken by the assessor. The duties of these boards and agencies are discussed below.

Board of Assessment Appeals

The major duty of the Board of Assessment Appeals (BAA) is to hear taxpayer appeals of decisions rendered by county boards of equalization, § 39-2-125(1)(c), C.R.S. Taxpayers who disagree with the county board’s decision may file an appeal with the BAA, district court, or request binding arbitration within thirty (30) days of the county board’s written decision. Arbitration decisions are final and not subject to review, §§ 39-8-108(4) and 108.5(3)(g), C.R.S. Each venue is a de novo hearing, which means that it is a completely new hearing of the matter, conducted as if the original hearing had not taken place. If a taxpayer is not heard at the county level within the statutory time periods, the taxpayer may appeal directly to the BAA, § 39-2-125(1)(e), C.R.S. See Chapter 5, Taxpayer Administrative Remedies, for additional information on the appeals process.

The BAA has other duties:

1.   Hears appeals from orders and decisions of the Property Tax Administrator, § 39-2-125(1)(b), C.R.S.
2.   Hears appeals on abatement petitions denied by the board of county commissioners. The appeals must be filed within thirty (30)        days of the commissioners’ written decision, § 39-2-125(1)(f), C.R.S.

The BAA may issue such orders as it deems necessary to determine facts and to carry out its decisions § 39-2-128, C.R.S. If a county does not comply with a BAA order, the Property Tax Administrator may request that the district court enforce such order, § 39-2-121, C.R.S.

Taxpayers may appeal decisions of the BAA to the court of appeals within forty-nine (49) days for judicial review, § 24-4-106(11), C.R.S. If the decision is against the respondent and the BAA recommends that the matter is of statewide concern, or if the decision results in a significant decrease in the total valuation of the county, the respondent may appeal to the Court of Appeals within forty-nine (49) days. If the BAA does not recommend its decision to be a matter of statewide concern or if the decision does not result in a significant decrease in the total valuation of the county, the respondent may petition the court of appeals within thirty (30) days of the decision for judicial review of such questions. In addition, if the decision of the BAA is against the respondent, the respondent may petition the Court of Appeals for judicial review of alleged procedural errors or errors of law within thirty (30) days 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, §§ 39-8-108(3) and 24-4-106(9), C.R.S.

State Board of Equalization

The State Board of Equalization (state board) has various duties concerning statewide administration of property tax laws and equalization of valuations of classes and subclasses of taxable property. The members of the state board include the governor, the speaker of the Colorado House of Representatives, the president of the Colorado Senate, and two members knowledgeable in property taxation, appointed by the Governor and confirmed by the Senate. The governor, speaker, and president may serve on the state board or may appoint a designee. Duties of the state board are found primarily in § 15, art. X, COLO. CONST., § 39-1-105.5, and article 9 of title 39, C.R.S.

1. The state board reviews the annual valuation for assessment study and orders reappraisals in counties found not to be in compliance, §§ 39-1-105.5 and 39-9-103(1) and (4), C.R.S. The annual study is conducted by the Director of Research of the Legislative Council, § 39-1-104(16), C.R.S. The study and resulting orders of reappraisal are the primary means of achieving statewide equalization of valuations.
2. The state board reviews county Abstracts of Assessment and the recommendations of the Property Tax Administrator, §§ 39-2-115(3) and 39-9-103(4), C.R.S.
   1. It may change actual values for a class or subclass of property in the year following an ordered reappraisal, § 39-9-104, C.R.S.
   2. It corrects obvious errors in any county abstract made by the assessor or Property Tax Administrator, § 39-9-104, C.R.S.
   3. It may order valuation changes of classes or subclasses of property which were changed by a county board of equalization, § 39-9-103(7), C.R.S.
   4. It certifies the abstract and any changes made by it to the assessor no later than December 20, § 39-9-105, C.R.S.
3. Upon written appeal, the state board reviews decisions of the Board of Assessment Appeals and may change decisions which affect classes or subclasses of property, § 39-9-103(5), C.R.S.
4. The state board also conducts hearings on complaints brought by the Property Tax Administrator either directly or by a tax levying authority or taxpayer. These include:
   1. Complaints alleging improper valuation or violation of property tax laws, §§ 39-2-111, 39-2-115(2), and 39-9-103(2), C.R.S.
   2. Complaints alleging dereliction of duty by a county assessor, § 39-9-103(6), C.R.S.
   3. Petitions for reappraisal, §§ 39-2-114 and 39-9-103(2), C.R.S.
5. The state board has supervision over the administration of all laws concerning the valuation and assessment of taxable property and the levying of property taxes, § 39-9-106, C.R.S.
6. The state board reviews and approves or disapproves the Division’s manuals, appraisal procedures, and instructions after review by the Statutory Advisory Committee. If the state board does not act within thirty (30) days of receipt, the manuals, appraisal procedures, or instructions are automatically approved, §§ 39-2-109(1)(e) and 39-9-103(10)(b), C.R.S.

Statutory Advisory Committee

The Statutory Advisory Committee (SAC) to the Property Tax Administrator has the authority to review and make recommendations to the State Board of Equalization (state board) to approve or disapprove manuals, appraisal procedures, instructions, guidelines, forms, notices, records published, approved or prescribed before they are presented to the Legal Services Committee and published by the Administrator, § 39-2-129, et. seq., C.R.S.

With the consent of the senate, the governor appoints five members to SAC: One assessor and one non-assessor are appointed from counties of 75,000 or more population. One assessor and one non-assessor are appointed from counties of less than 75,000 population. One non-assessor is appointed from the western slope. The governor shall appoint one of the non-assessor members as chair of the advisory committee. Not more than three of the members can be from the same political party. The members serve a four-year term. Vacancies are filled by the governor for the remaining term.

The SAC meets quarterly; however, the chair may hold additional meetings when necessary. Three members are required to be present to conduct official business. All meetings are open to the public.

At least two weeks prior to the meeting the Division provides a notice of hearing. Assessors, industry representatives, and other interested parties may attend and make comments on any agenda item.

Property Tax Administrator

The Division of Property Taxation is directed by the Property Tax Administrator (Administrator) who is appointed by the State Board of Equalization for a five-year term. The Administrator has responsibilities over many aspects of property taxation. Some of these responsibilities are listed below.

1. Approves the form and size of all personal property declaration schedules, forms, and notices furnished or sent by assessors to owners of taxable property, the form for petitions for abatement or refund, the form of all field books, plat and block books, maps, and appraisal cards, and other forms and records used and maintained in the office of the assessor. Exclusive use shall be required by all assessors to ensure uniformity and promote equalization, §§ 39-2-109(1)(d) and 39-8-106(1), C.R.S.
2. Prepares and publishes manuals, appraisal procedures, and instructions concerning methods of appraising and valuing land, improvements, manufactured homes and personal property. The publications are to be reviewed by the Statutory Advisory Committee, approved by the state board and are subject to legislative review, §§ 39-2-109(1)(e) and 131, C.R.S.
   Assessors are required by statute and case law to use the instructions in valuing and assessing taxable property. In Huddleston (Property Tax Administrator) v. Grand County, 913 P.2d 15 (Colo. 1996), the Colorado Supreme Court recognized and affirmed the Property Tax Administrator’s broad authority to prepare manuals and procedures, as well as to require that the Colorado county assessors utilize these manuals and procedures to carry out their responsibilities pursuant to section 3 of article X of the Colorado Constitution.
3. Conducts public hearings affording interested persons an opportunity to submit written data, views, or arguments and to present the same orally unless the administrator deems it unnecessary. The Administrator shall consider all submissions when finalizing proposed changes to property tax materials prior to submitting those changes for review by the Statutory Advisory Committee, §§ 39-2-109(2) and 131, C.R.S.
4. Prepares and supplies to all assessors those forms required to be completed by them and filed with the Administrator, such as the Abstract of Assessment, § 39-2-109(1)(f), C.R.S.
5. Upon not less than ten (10) days’ prior notice, may call meetings of assessors at some designated place in the state; and upon reasonable notice, may call group or area meetings of two or more assessors, § 39-2-109(1)(g), C.R.S.
6. Examines complaints of taxpayers regarding improper appraisal or valuation practices of classes or subclasses of property, or that property tax laws have been violated. An assessor may be required to appear before the Administrator to determine whether the assessor has complied with statutes in appraising and valuing taxable property. The Administrator may use the complaint findings to petition the state board for a reappraisal in the county, §§ 39-2-111, 112 and 114, C.R.S.
7. Reviews each county’s Abstract of Assessment to ensure compliance with appraisal procedures. Any comments or recommendations are forwarded to the state board, §§ 39-2-115(2) and 39-5-124(2), C.R.S.
8. Files a complaint with the state board if it is found that the assessor has not valued property correctly. This may occur after examination of the abstract of assessment, § 39-2-115(2), C.R.S.
9. Reviews and approves or disapproves, in whole or in part, all tax abatements or refunds greater than $10,000 submitted by the board of county commissioners, §§ 39-1-113 and 39-2-116, C.R.S.
10. Receives a copy of the certification of levies from the board of county commissioners, § 39-1-111(2), C.R.S.
11. Provides an annual school for assessors and their staff. Statute requires the assessor to attend, § 39-2-110, C.R.S.
12. Values the property and plant of all state assessed companies doing business in the state, § 39-2-109(1)(a) and article 4 of title 39, C.R.S.
13. Examines, reviews, and approves or disapproves all applications claiming exemption of taxable property from general taxation pursuant to §§ 39-2-117, 39-3-101, and 106 through 116, C.R.S.
14. May appear as a party in interest in any proceeding before a court or other tribunal in which an abatement or refund of property taxes is sought or when a question bearing on statewide assessment policy is raised, § 39-2-113, C.R.S.
15. May issue subpoenas and compel attendance of witnesses and relevant records whenever a person may be lawfully questioned on matters pertaining to assessment practices. The Administrator’s orders are enforceable through the courts, §§ 39-2-120, 121, and 122, C.R.S.
16. May file a complaint with the state board whenever a county assessor is alleged to be derelict in assessment duties, §§ 39-2-111 and 39-9-103(6), C.R.S.
17. Prepares an annual report at the end of each calendar year which contains the aggregate value of each class and subclass of property in each county, the levies imposed, and revenues derived therefrom, § 39-2-119, C.R.S.
18. Participates in the estimation of projected assessed values when a qualifying operation desires to take advantage of ad valorem tax prepayments, § 39-1.5-104, C.R.S.
19. Assists and cooperates in the administration of all laws concerning the valuation and assessment of taxable property and the levying of property taxes, § 39-2-109(1)(b), C.R.S.
20. Prepares and designs basic forms to be used by all assessors in the assessment of real property, § 39-2-109(1)(h), C.R.S.
21. Establishes guidelines to be used by assessors in their mapping programs, § 39-5-103.5, C.R.S.
22. The Administrator shall examine the reports of the senior and veteran exemptions provided by all county assessors’ each year and determine that applicants have met all legal requirements for claiming the exemption, § 39-3-207(2)(a)(I), C.R.S.
23. The Administrator shall examine all county tax warrants to ensure that no additional senior or veteran exemptions have been allowed since the administrator examined the reports previously and determines that any exemption previously denied was removed from the tax warrant. Administrator will cross-check the county treasurers reports prior to forwarding to the state treasurer for reimbursement, §§ 39-3-207(2)(b), (3), and (3.5), C.R.S.
24. The Administrator provides information to the Department of Revenue and the Department of Public Health and Environment to determine if any applicant does not meet the legal requirements for claiming the senior or veteran exemptions, §§ 39-3-205(4)(a)(III) and 39-3-207(3.7), C.RS.
25. The Administrator calculates the percentage increase or decrease in total valuation of business personal property in the state over the prior two property tax years. The percentage increase or decrease will be published on the Division of Property Taxes website, § 39-3-119.5(3)(b) C.R.S.
26. The Administrator reviews and confirms the total property tax revenues lost for each county, as reported by the county treasurer. If necessary, the amount will be rectified. The correct amount for each county will be forwarded to the state treasurer to enable the state treasurer to issue a reimbursement warrant to each county treasurer, § 39-3-119.5(3)(d) C.R.S.

Addendum 1-A, List of Assessors

Telephone numbers, office addresses, e-mail addresses, website addresses, as well as other Colorado Assessors’ Association (CAA) information is available on the Colorado Assessors’ Association website.

Addendum 1-B, Certification of Real Estate Appraisers

Regulations

In 1989, Congress enacted the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). This law was necessary to resolve the huge national problem of the thousands of savings and loan institutions and banks that had failed or were in serious financial trouble. The provisions of FIRREA included:

•  Establishment of a federally chartered foundation to create uniform appraisal and certification standards for the industry.
•  Establishment of a federal inter-agency council to establish appraisal standards to protect federally sponsored agencies which buy   and guarantee loans and insure deposits.
•  Establishment of minimum education and experience levels for real estate appraisers.
•  Directives to the states to implement legislation creating state licensing boards for the regulation and discipline of appraisers. Each state’s legislation must conform to FIRREA.

These provisions have directly impacted Colorado county assessor appraiser employees. State legislation in 1990 created part 7 in article 61 of title 12, C.R.S. These statutes were recreated and reenacted in 2014, per SB 14-117. Section 12-10-606(4)(a), C.R.S., requires appraiser employees of the county assessor’s office, but not the county assessor, to be licensed or certified.

Colorado Board of Real Estate Appraisers (BOREA)

Colorado’s FIRREA legislation created the Colorado Board of Real Estate Appraisers (BOREA or Board) within the Division of Real Estate of the Department of Regulatory Agencies (DORA). Seven board members are appointed by the Governor, and confirmed by the state Senate. Board members serve staggered three-year terms. Beginning July 1, 1997, of the seven members, three shall be licensed or certified appraisers, one member shall have expertise in eminent domain matters; one member shall be a county assessor in office; one member shall be an officer or employee of a commercial bank experienced in real estate lending; one member shall be an officer or employee of an appraisal management company; and one shall be a member of the public at large not engaged in any of the businesses represented by the other members of the Board.

BOREA has the responsibility to promulgate rules and regulations for the implementation and administration of Colorado’s appraisal legislation. BOREA approves or disapproves all applications submitted for licensure in the state of Colorado. BOREA meets once a month. Contact the Division of Real Estate at 303-894-2166 prior to the meeting to confirm the meeting date and location.

Categories of Appraisers

There are four categories for licensure included in Colorado’s legislation. They include:

1. Licensed Ad Valorem Appraiser
2. Licensed Appraiser
3. Certified Residential Appraiser
4. Certified General Appraiser

The Ad Valorem Appraisal License has replaced the Registered Appraisal license. Effective July 1, 2013, “Licensed ad valorem appraisers licensed under this article are not regulated by the federal Real Estate Appraisal Reform Amendments”, Title XI of the federal “Financial Institutions Reform, Recovery, and Enforcement Act of 1989”, as amended, 12 U.S.C. secs. 3331 to 3351,” § 12-10-601, C.R.S. The Board shall transfer Registered Appraisers in the county assessors’ offices, as well as those in the Division of Property Taxation within the Department of Local Affairs as of July 1, 2013, to the category of Licensed Ad Valorem Appraiser. This transference of licensure is contingent upon the adherence to additional requirements imposed by the Board pursuant to § 12-10-604(1)(a), by December 31, 2015, as amended, § 12-10-606(1)(d), C.R.S.

Appraiser employees of any county assessor’s office who are employed to appraise real property must be licensed or certified within two years from the date of hire, § 12-10-619(2), C.R.S. A county assessor or an assessor’s office employee who is a Licensed Ad Valorem Appraiser may not perform real estate appraisals outside of his or her official duties, § 12-10-606(1)(c), C.R.S. Licensed or certified appraiser employees of any county assessor’s office are not required to hold errors and omissions insurance per § 12-10-608(1), C.R.S. Employees applying for the Ad Valorem Appraiser License are not subject to fingerprinting and background check requirements per § 12-10-606(6)(b), C.R.S. However, those holding any other level of license must still comply with those requirements.

BOREA has determined that nothing precludes an assessor’s employee from becoming licensed or certified at a level higher than Licensed Ad Valorem Appraiser;” however, § 12-10-619(2), C.R.S., requires the appraiser to obtain this license within two years of employment. Appraiser employees of the county assessors who are employed to appraise real property shall not be subject to disciplinary actions by BOREA on the grounds that they have performed appraisals beyond their level of competency when appraising real estate in fulfillment of their official duties. County assessors, if licensed or certified, shall not be subject to disciplinary actions by BOREA on the grounds that they have performed appraisals beyond their level of competency when appraising real estate in fulfillment of their official duties, pursuant to § 12-10-606(4)(b), C.R.S.

Licensure and Certification

Education Requirements for Initial License

All education requirements may be completed at any time prior to filing the application for licensure or certification. However, the education requirements must be completed when the application is filed.

Appraisal education and training courses must be taken from course providers that have been approved by the Colorado Board of Real Estate Appraisers.

The Division of Property Taxation is an approved course provider for courses necessary to obtain the Ad Valorem License.

Each applicant must complete, as part of the total education and training hour requirement for initial licensure or certification, at least 15 hours classroom coverage of the Uniform Standards of Professional Appraisal Practice (USPAP). All pre-licensing courses in appraisal ethics and USPAP must be approved by the Appraiser Qualifications Board of the Appraisal Foundation and taught by an instructor certified by the Appraiser Qualifications Board.

Applicants must take a series of appraisal education courses and training which build upon and augment previous appraisal courses. Courses which substantially repeat other course work in terms of content and level of instruction will not be accepted, at the discretion of BOREA.

Qualifying education classes for the initial license or upgraded licenses must be a minimum of fifteen hours and tested.

The education and state examination requirements for each level of licensure are listed as follows:

No college-level education is required. The applicant must have at least 150 creditable classroom hours of real property appraisal education as follows:

• Licensed Ad Valorem Appraiser
  Applicant must have at least 110 creditable classroom hours of real property appraisal education as follows:

  • Basic Appraisal Principles (no less than 30 hours)
  • Basic Appraisal Procedures (no less than 30 hours)
  • The 15-Hour National USPAP Course
  • Introduction to Ad Valorem Mass Appraisal (no less than 35 hours)
  • Licensed Ad Valorem Appraiser state examination

  If the appraiser was previously a Registered Appraiser, completion of the 35 hour Introduction to Ad Valorem Mass Appraisal is the only education requirement.

• Licensed Appraiser

  No college-level education is required. The applicant must have at least 150 creditable classroom hours of real property appraisal education as follows:

  • Basic Appraisal Principles (30 hours)
  • Basic Appraisal Procedures (30 hours)
  • The 15-Hour National USPAP Course
  • Residential Market Analysis and Highest and Best Use (15 hours)
  • Residential Appraiser Site Valuation and Cost Approach (15 hours)
  • Residential Sales Comparison and Income Approaches (30 hours)
  • Residential Report Writing and Case Studies (15 hours)
  • Licensed Real Property Appraiser state examination
     

• Certified Residential Appraiser

  An appraiser has 6 options to meet the education requirement, which are outlined in the tables below In addition, applicant must have at least 200 creditable classroom hours of real property appraisal education as follows:

  • Basic Appraisal Principles (30 hours)
  • Basic Appraisal Procedures (30 hours)
  • The 15-Hour National USPAP Course
  • Residential Market Analysis and Highest and Best Use (15 hours)
  • Residential Appraiser Site Valuation and Cost Approach (15 hours)
  • Residential Sales Comparison and Income Approaches (30 hours)
  • Residential Report Writing and Case Studies (15 hours)
  • Statistics, Modeling and Finance (15 hours)
  • Advanced Residential Application and Case Studies (15 hours)
  • Appraisal Subject Matter Electives (20 hours)
  • Certified Residential Appraiser state examination
     

  	College Level Education Requirement Options for Certified Residential
  Option #1	Bachelor’s Degree in any field of study
  Option #2	Associate’s Degree in a field of study related to: Business Administration Accounting Finance Economics; or Real Estate
  Option #3	Successful Completion of 30 semester hours of college-level courses that cover each of the following specific topic areas and hours: English Composition (3 hours) Microeconomics (3 hours) Macroeconomics (3 hours) Finance (3 hours) Algebra, Geometry, or Higher Math (3 hours) Statistics (3 hours) Computer Science (3 hours) Business Law or Real Estate Law (3 hours) Two elective courses in any of the above topics or in Accounting, Geography, Agricultural Economics, Business Management, or Real Estate (3 hours each)
  Option #4	Successful completion of at least 30 semester hours of College Level Examination Program ® (CLEP®) examinations (see equivalency table below)
  Option #5	Any combination of Option #3 and Option #4 that includes all of the topics identified in Option #3
  Option #6	No college-level education required. This option applies only to appraisers who have held a Licensed Residential credential for a minimum of five (5) years and have no record of any adverse, final, and non-appealable disciplinary action affecting the Licensed Residential appraiser’s legal eligibility to engage in appraisal practice within the five (4) years immediately preceding the date of application for a Certified Residential Credential.

  Equivalency Table

  CLEP Exams	CLEP Semester Hours Granted	Applicable College Courses
  College Algebra	3	Algebra, Geometry, Statistics, or higher mathematics
  College Composition	6	English Composition
  College Composition Modular	3	English Composition
  College Mathematics	6	Algebra, Geometry, Statistics, or higher mathematics
  Principles of Macroeconomics	3	Macroeconomics or Finance
  Principles of Microeconomics	3	Microeconomics or Finance
  Introductory Business Law	3	Business Law or Real Estate Law
  Information Systems	3	Computer Science

  
   

• Certified General Appraiser

  A Bachelor’s degree is required. In addition, the applicant must have at least 300 creditable classroom hours of real property appraisal education as follows:

  • Basic Appraisal Principles (30 hours)
  • Basic Appraisal Procedures (30 hours)
  • The 15-Hour National USPAP Course
  • General Appraiser Market Analysis and Highest and Best Use (30 hours)
  • Statistics, Modeling and Finance (15 hours)
  • General Appraiser Sales Comparison Approach (30 hours)
  • General Appraiser Site Valuation and Cost Approach (30 hours)
  • General Appraiser Income Approach (60 hours)
  • General Appraiser Report Writing and Case Studies (30 hours)
  • Appraisal Subject Matter Electives (30 hours)
  • Certified General Appraiser state examination

Each applicant must provide a signed statement attesting to the successful completion of the required hours of appraisal education and training. BOREA reserves the right to require an applicant to provide additional documentary evidence of completion of appropriate course work.

It is important that all qualifying education hours be completed prior to filing an application with the Colorado Board of Real Estate Appraisers.

Continuing Education Requirements

The continuing education requirement for Colorado appraisers, at all levels, is a total of twenty-eight (28) hours, which must be completed in the two years prior to the expiration date of his or her license. Continuing education programs must be at least two hours in length and may cover a wide range of appraisal related topics.

The twenty-eight (28) hours for continuing education must include a 7-Hour National USPAP Update Course that has been approved by the Appraiser Qualifications Board of the Appraisal Foundation and taught by an instructor certified by the Appraiser Qualifications Board. Each renewal applicant must complete the course every other year.

Licensees should always ask if there is an examination for the education program provided. The Division of Property Taxation, as a course provider, requires all students to take examinations at the end of four or five-day courses. Any time an examination is taken, a passing grade must be achieved in order for the student to gain any type of credit for the course or workshop. Examinations are not given for one-day workshops since these may be taken only to satisfy continuing education requirements. Teaching of continuing appraisal education courses and programs shall constitute successful completion.

The Division of Property Taxation is maintaining a database of course attendees so that transcripts of all courses and workshops offered through its education program are available. IAAO course transcripts and grades are provided through IAAO at the following address:

IAAO Headquarters
314 West 10th Street
Kansas City, MO 64105-1616
IAAO Website
Email: info@iaao.org
Phone: 800-616-4226
Fax: 816-701-8149

Licensees should maintain their own records of qualifying and continuing education since the Board may require each licensee to prove he or she has met any and all education requirements.

The Colorado Board of Real Estate Appraisers may consider alternatives to continuing appraisal education programs and courses such as teaching, authorship of textbooks or articles, educational programs development or similar activities. Licensees desiring continuing appraisal education credit for alternative activities must petition BOREA for approval on a form provided by BOREA.

A licensee may be placed on an inactive status if the continuing education requirements have not been met to renew a license. The license may be activated if the licensee submits written certification of compliance with the required number of continuing education hours as determined by the Appraiser Qualifications Board of the Appraisal Foundation or its successor organization. The holder of an inactive license shall not perform an appraisal or appraisal management duties, § 12-10-610(3)(b), C.R.S.

“No revocation, suspension, annulment, limitation, or modification of a license by any agency shall be lawful unless, before institution of agency proceedings therefore, the agency has given the licensee notice in writing of objective facts or conduct established upon a full investigation that may warrant such action and afforded the licensee opportunity to submit written data, views, and arguments with respect to the facts or conduct and, except in cases of deliberate and willful violation or of substantial danger to public health and safety, given the licensee a reasonable opportunity to comply with all lawful requirements. “Full investigation” means a reasonable ascertainment of the underlying facts on which the agency action is based,” § 24-4-104(3)(a), C.R.S.

A person who fails to renew his or her license, or certificate before the applicable renewal date may have it reinstated if the person does any one of the following, § 12-10-610(1)(b), C.R.S.

• Makes proper application, within thirty-one days after the date of expiration, by payment of the regular renewal fee; or
• If proper application is made more than thirty-one days, but within one year, after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to one-third the regular renewal fee; or
• If proper application is made more than one year, but within two years, after the date of expiration, by payment of the regular renewal fee and payment of a reinstatement fee equal to two-thirds the regular three-year renewal fee.

At the time of renewal or reinstatement, licensed or certified appraisers and each person or individual who owns more than ten percent of an appraisal management company shall submit a set of fingerprints to the Colorado Bureau of Investigation for the purpose of conducting a state and national fingerprint–based criminal history record check utilizing records of the Colorado Bureau of Investigation and the Federal Bureau of Investigation, if the person has not previously done so for issuance of a license, or certification by the Board. Each person submitting a set of fingerprints shall pay the fee established by the Colorado Bureau of Investigation for conducting the fingerprint-based criminal history record check of the Bureau. The Bureau shall forward the results to the Board. The Board may require a name-based criminal history record check for an applicant who has twice submitted to a fingerprint-based criminal history record check and whose fingerprints are unclassifiable. The Board may refuse to renew or reinstate a license or certification based on the outcome of the criminal history record check, § 12-10-610(4), C.R.S.

Appraisal Experience Requirements

The Board of Real Estate Appraisers has defined appraisal experience as specified numbers of hours of appraisal activity, accumulated across specified periods of time, depending on the level of license.

The following areas of appraisal activity may constitute potentially acceptable evidence of appraisal experience:

• Fee and staff appraisal
• Ad valorem tax appraisal
• Review appraisal
• Appraisal analysis
• Real estate counseling
• Highest and best use analysis
• Feasibility analysis/study
• Such other experience as BOREA may accept upon petition by the applicant on a form provided by BOREA.

The experience requirements for each level of licensure are:

• Licensed Ad Valorem Appraiser
  No experience needed.
• Licensed Appraiser
  At least 1,000 hours of acceptable real property appraisal experience gained over a period of not less than 6 months.
• Certified Residential Appraiser
  At least 1,500 hours of acceptable real property appraisal experience, gained over a period of not less than 12 months.
• Certified General Appraiser
  At least 3,000 hours of acceptable real property appraisal experience, gained over a period of not less than 18 months, and shall include at least 1,500 hours in the appraisal of non-residential properties.

BOREA reserves the right to verify an applicant’s or licensee’s evidence of appraisal experience by such means as it deems necessary, including, but not limited to requiring the following:

1. Submission of a detailed log of appraisal activity
2. Submission of appraisal reports, files or file memoranda
3. Employer affidavits or interviews
4. Client affidavits or interviews, and
5. Submission of appropriate business records

Examination Procedures

The Appraisal Standards Board has developed the examinations for Colorado. A Colorado Department of Regulatory Agencies Letter of Exam Eligibility must be presented at the testing center in order to take the Licensed Real Property Appraiser exam, Certified Residential Appraiser exam or Certified General Appraiser exam. Applicants will submit their licensing application with all completed education and experience to DORA in order to get the Letter of Exam Eligibility. Licensed Ad Valorem applicants do not need a Letter of Exam Eligibility to take the test. These applicants should take the test and submit their passing score with their application.

PSI Examination Services will continue to administer the Real Estate Broker and Appraiser licensing examinations for the State of Colorado. Available exam times and locations are available online. It is important to note that each exam may have different exam sites.

The examination fee schedule is available on the PSI Exams online website. Visit the PSI Exams online website to find the most up-to-date information on the fee associated with your exam. Please be aware that the registration fees are not refundable or transferable.

The method of payment is dependent upon how the registration is made. Please visit the PSI Exams online website for details.

Examinations may be scheduled via the mail, telephone, internet or fax.

PSI Examination Services
3210 East Tropicana
Las Vegas, NV 89121
Website: PSI Exams online website
Phone: 800-733-9267

The test dates, times, and locations are listed on PSI’s website. The applicant must request one of the exams available according to the level of licensure for which application is made.

• Colorado Licensed Ad Valorem Appraiser
  • 110 Classroom Hours of Real Property Appraisal and Mass Appraisal Education
  • 0 Hours of Real Property Appraisal and Mass Appraisal Experience
  • 100 scored questions
  • In order to pass the examination, you must get 75 questions correct.
  • Time allowed: 3 hours
• Colorado Licensed Appraiser
  • 150 Classroom Hours of Real Property Appraisal Education
  • 1,000 Hours of Real Property Appraisal Experience
  • 110 scored questions
  • In order to pass the examination, you must achieve a minimum scaled score of 75. It is important to note that a scaled score of 75 is not a percentage score or the actual number of items needed to be answered correctly to pass the examination; those numbers will vary from examination to examination, based on the difficulty level of the items in any particular examination.
  • Weighted to the Sales Comparison Approach
  • Time allowed: 4 hours
• Colorado Certified Residential Appraiser
  • 200 Classroom Hours of Real Property Appraisal Education
  • 1,500 Hours of Real Property Appraisal Experience
  • 110 scored questions
  • In order to pass the examination, you must achieve a minimum scaled score of 75. It is important to note that a scaled score of 75 is not a percentage score or the actual number of items needed to be answered correctly to pass the examination; those numbers will vary from examination to examination, based on the difficulty level of the items in any particular examination.
  • Weighted to the Sales Comparison Approach
  • Time allowed: 4 hours
• Colorado Certified General Appraiser
  • 300 Classroom Hours of Real Property Appraisal Education
  • 3,000 Hours of Real Property Appraisal Experience
  • 110 scored questions
  • In order to pass the examination, you must achieve a minimum scaled score of 75. It is important to note that a scaled score of 75 is not a percentage score or the actual number of items needed to be answered correctly to pass the examination; those numbers will vary from examination to examination, based on the difficulty level of the items in any particular examination.
  • Weighted to the Income Approach
  • Time allowed: 6 hours

The applicant should be sure to request the correct examination and confirm both the site where the exam will be taken and the date of the examination. The applicant should also write down all information given by the testing service.

Examinees may use non-alpha-programmable financial calculators. All calculators must be cleared before entering the examination room and at the conclusion of the examination. Each examinee is required to bring the calculator’s instruction manual to assist the test proctor in ensuring that the calculator has been cleared. In addition, the Division recommends examinees bring the PSI Candidate Information Bulletin found on the PSI website when registering for the exam to the testing center to confirm the calculator is allowed. Solar calculators will not work due to lighting conditions of the examination room.

Exam results are valid for two years from the date of successful completion of the exam. The applicant will submit his or her passing score to the Colorado Department of Regulatory Agencies to complete their license application submission. Applicants for Licensed Ad Valorem Appraiser may submit their test score with their license application. Failure to file a complete application within the two-year period will result in the examination grade being void.

BOREA reserves the right to refuse any application based on lack of appropriate appraisal education or experience. However, the applicant has the right to appeal these decisions.

All correspondence and issues pertaining to licensing and certification should be addressed to the:

Division of Real Estate
1560 Broadway, Suite 925
Denver, Colorado 80202
Colorado Board of Real Estate Appraisers Website
Phone: 303-894-2166

Addendum 1-C, Records Retention

Applicable Statutes

Archival procedures are addressed in State Archives and Public Records Law - Sections 24-80-101 through 113, C.R.S. During the 2010 legislative session, § 24-80-101(10), C.R.S., was amended to include state agencies in those that are subject to fees. The current Colorado State Archives Fee Schedule appears at the end of this section.

Establishment of Guidelines

Each state agency is required to establish and maintain a records management program as well as designate a records liaison officer to review its policies and procedures. The officer shall establish both an inventory as well as a retention and disposition schedule of records for the agency. They will assist the State Archivist by providing them with information such as the number of records stored, amount of storage space used and cost of storage. The officer will also ensure that there is adequate security, public access and proper storage of the agency’s records, § 24-80-102.7, C.R.S.

Purpose of Guidelines

Personnel in an assessor’s office work with a large variety of documents and other records. Many of these records must be retained by the assessor’s office for a minimum number of years. At the end of the retention period, authorization must be obtained from the state archivist before the documents can be destroyed.

The minimum retention period schedule for assessor’s office documents begins later in this addendum. The retention periods listed are recommendations developed over the years by the state archivist, with the cooperation of the Division of Property Taxation and county assessors. In the event that a minimum retention period listed in the schedule conflicts with a legal requirement, the legal requirement shall supersede the schedule and the record must be kept as long as indicated in statute.

These guidelines have been prepared to implement the provisions of State Archives and Public Records Law, § 24-80-102(3), C.R.S., and to provide guidance to assessors in establishing a records retention and disposition plan. It is emphasized that the minimum retention periods listed in the schedule are to be interpreted as recommendations and not as authorization to retain or dispose of any records. Records may be kept longer than recommended if the assessor determines that a longer retention period is necessary; however, records may not be destroyed sooner than allowed.

Statutory Requirements for Record Keeping

Records containing ownership, legal description, and value of each parcel in the county are required by statute to be maintained by the assessor’s office. Additional records, such as appraisal records, are to be maintained as permanent records; others are kept as back-up documentation, such as address changes, determination of values, agricultural classification, income approach data, and protest information. It is important for the assessor to understand which records need to be kept on a permanent basis and which records can be destroyed after a certain period of time.

Custody of Public Records

Public records are public property. As such, public records should always remain in the custody and control of the office that created them or received them pursuant to law, or they should be destroyed. They should not be placed in the custody of private or semi-private institutions or individuals.

Need for a Plan

It is important for the assessor to establish a plan for records retention as well as a plan for destruction of records. Records considered not to be permanent are assigned a minimum retention period which is usually six years plus the current year § 24-80-102(3), C.R.S. Each assessor should periodically review the records retention and disposition plan drafted by the state archivist. The assessor should document records destroyed, the means of disposition, and file the documentation with permission granted by the state archivist on the State Archives website. Again, the assessor may keep records longer than recommended if desired; however, records may not be destroyed sooner than allowed by the state archivist.

Section 6-1-713, C.R.S., requires the assessor to develop a policy for the destruction or proper disposal of paper documents containing personal identifying information, including social security numbers. As such, a retention and destruction schedule for senior citizen and veteran with a disability exemption applications and related documents containing social security numbers is included in Retention Schedule below.

Methods of Destruction

After permission has been granted by the state archivist, and met the minimum retention period, records should be destroyed by one of the following methods to ensure that the identity of the record is destroyed to prevent unauthorized use:

• Shredding
• Recycling
• Burning (where authorized); and
• Burial in a landfill provided the paper is buried a minimum of three (3) feet below the surface.

It is recommended that a log be kept of the date(s) when records were destroyed including the types of documents (e.g., NOVs) and the years or range of years destroyed (e.g., 1990-2002). The log should also include electronic formats to reflect when the data/record information was deleted from the information technology system.

Be careful!! Records destroyed inadvertently are difficult to reconstruct.

Disposal of Records

The disposal of records should be documented in some permanent manner such as a notarized memorandum of disposal signed by the assessor. This documentation should include a description and quantity of each type of record or form destroyed including pertinent dates covered by the records or forms, and the date the destruction was completed.

Disposal When Microfilmed or Otherwise Reproduced

Many county assessors are adopting the practice of microfilming and/or scanning records, and either destroying the originals or storing them off-site or transferring them to the custody of the State Archivist for permanent preservation and administration.

Section 24-80-107, C.R.S., allows any public officer to photograph, microphotograph or reproduce on film any or all records kept by him. Such photographic film shall comply with the minimum standards of quality approved for permanent photographic records by the National Bureau of Standards as long as the device used to reproduce the records is one which accurately reproduces the original in all details. Such photographs, microphotographs, or photographic film are deemed to be original records for all purposes, including introduction in evidence in all courts or administrative agencies. A transcript, exemplification, or certified copy shall be deemed to be a transcript, exemplification, or certified copy of the original.

Whenever the necessary requirements are met pursuant to § 24-80-107, C.R.S., the public officer can have the original records disposed of according to methods prescribed by §§ 24-80-103 to 24-80-106, C.R.S.

As a general rule, originals of permanent records or other valuable documents that have been microfilmed or scanned should be carefully reviewed before any record is destroyed. Certain records may be disposed of after microfilming or scanning; however, it is the policy of the state archivist that records prior to 1900 always be retained because of their historical value. Always remember, if the original record is destroyed it cannot be replaced and an electronic copy is only as good as the technology available to access the copy.

Liability of the Custodian

When records have been destroyed or otherwise disposed of (transferred to the state archivist) under proper authorization, any liability that the assessor might incur for such destruction or other disposal shall cease.

Reservations to the Plan

The state archivist and the attorney general reserve the right to change or amend any plans developed from these guidelines at any time. No record shall be destroyed without the authorization of the state archivist and no record so authorized shall be destroyed so long as it pertains to any pending case, claim, action, or audit.

Further Information

For further information regarding the preservation and disposition of assessment records, please consult the Financial Management Manual for Colorado Local Governments, Records Management chapter.

For professional and technical services, and destruction authorization, the custodian of the records should contact the state archivist at:

State Archivist
Division of State Archives and Public Records
1313 Sherman Street, Room 120
Denver, CO 80203-2274
State Archivist Website
Phone: 303-866-2358

Retention Schedule

Colorado State Archives Fee Schedule

The Colorado State Archives Fee Schedule is available online.

Addendum 1-D, Public Officials

Statutory Citations

Ethical Actions of Public Servants

This section is a compilation of citations from Colorado Revised Statutes (C.R.S.), which relates to the ethics of public servants’ actions.

Assessment Districts and Deputies

This section is a compilation of citations from Colorado Revised Statutes (C.R.S.), and the Colorado Constitution, related to the vacancy of an assessor’s office.

Recall of Elected Officials

This section is a compilation of citations from Colorado Revised Statutes (C.R.S.) related to the recall of elected officials.

Other Fees Certified to the Treasurer

This section is a compilation of citations from Colorado Revised Statutes (C.R.S.) related to the collection of other fees certified to the county treasurer.

Assessor Accountability

This section is a compilation of citations from Colorado Revised Statutes (C.R.S.) related to the reporting requirements/guidelines for fees and the penalties associated with each when violated.

Introduction

This  chapter is intended to illustrate the general workflow of the assessor’s office, and provide an overview of the duties that the assessor’s staff must accomplish on an annual basis. The first section of this chapter, entitled Nondate-Specific Statutory Duties, reflects tasks that must be accomplished daily or intermittently throughout the year. The remainder of this chapter is devoted to a monthly breakdown of tasks associated with statutory deadlines and recommended nondate-specific statutory tasks. Detailed procedures for accomplishing many duties are shown in Chapter 3, Specific Assessment Procedures. 

Areas of responsibility were divided among the following three teams:

• Management Team: Assessor and top-level supervisors.
• Administration Team: Staff assigned to perform administrative duties such as transferring ownership, mapping, certifying values, completing the abstract, maintaining the assessment roll, etc.
• Appraisal Team: Staff assigned to perform real and personal property appraisal duties such as data gathering, appraising, data analysis, and building appraisal models, as well as supporting the values for protest and appeal hearings.

The procedures detailed in this chapter are based on the standard protest and appeal period, and should be reviewed and modified as necessary for each office depending upon the county’s parcel count, staff size, computer system and mapping capabilities, geographic location, etc.

Nondate-Specific Statutory Duties

Many duties must be accomplished before statutory deadlines or requirements can be met. This section deals with duties that are not tied to a specific deadline, but must be completed at various times throughout the year.

Management Team Tasks

• Monitor completion of duties detailed for the Administration and Appraisal Teams, review status of each and reassign or redefine priorities as necessary.
• Manage personnel issues.
• Review status of budget regularly.

Administration Team Tasks

• Process recorded title conveyance documents. Copies of conveyance documents that transfer commercial and industrial property should be routed to the individual(s) responsible for personal property records. (Refer to Title Conveyance in Chapter 3, Specific Assessment Procedures.)

• Sales Confirmation:

  Review Real Property Transfer Declarations (TD-1000s) filed with deeds bearing a documentary fee and Manufactured Home Transfer Declarations (MHTD) filed with title applications.

  Send penalty notifications to grantees of deeds filed with incomplete or missing TD-1000s.

  Send penalty notifications to buyers of titled manufactured homes who have not submitted or have not completed MHTDs.

  Enter sales information from TD-1000s and MHTDs into sales database.

  Code sales with the appropriate valid or invalid sales code. (Refer to ARL Volume 3, REAL PROPERTY VALUATION MANUAL, Chapter 3, Sales Confirmation and Stratification.)

  Enter the appropriate invalid sales codes for deeds that are exempt from the documentary fee. (Refer to ARL Volume 3, REAL PROPERTY VALUATION MANUAL, Chapter 3, Sales Confirmation and Stratification.)

• Process annexations, disconnections, inclusions and exclusions. (Refer to Boundary Changes for Taxing Entity in Chapter 3, Specific Assessment Procedures.)
• Process subdivision, re-subdivision, townhome, condominium, and planned unit development plats. (Refer to Processing Plats, Chapter 3, Specific Assessment Procedures.)
• Generate and review reports for data control; verify large changes in value. (Refer to Data Control Measures in Chapter 3, Specific Assessment Procedures.)
• Process abatement and refund petitions. (Refer to Abatements in Chapter 3, Specific Assessment Procedures.)
• Process changes of address.
• Prepare ownership lists for special district elections. (Refer to Special District Elections – Property Owners List in Chapter 3, Specific Assessment Procedures.)
• Update assessment maps by timely processing parcel and taxing entity boundary changes. (Refer to Mapping in Chapter 3, Specific Assessment Procedures and Chapter 14, Assessment Mapping and Parcel Identification.)
• Track and code changes when property goes from taxable to exempt or from exempt to taxable.

• Process real property value prorations for:

  Changes in taxable status
  Movement of titled manufactured homes into or out of the state
  Destruction of improvements
  (Refer to Chapter 4, Assessment Math.)

• Process Special Notices of Valuation for omitted property, titled manufactured homes moving into the county from out of state, and property that changed taxable status due to a forfeiture or revocation of tax exempt status or termination of a lease by the state, a political subdivision, or a state supported institution of higher education. (Refer to Circumstances Requiring a Special NOV and Procedures for Issuing a Special NOV in Chapter 3, Specific Assessment Procedures.)

  NOTE: When exempt property is sold, the tax exempt status is revoked upon deed recordation. For example, if exempt property owned by the ABC Church is deeded to the XYZ Church, the tax exempt status of the property is lost until such time as the XYZ Church applies for exemption, even if the XYZ Church has other property in the county that is exempt. The Division recommends sending a blank application for exemption along with the Special Notice of Valuation to the new owner. A copy of the deed should be sent to the Division’s Exemption section.

• All fees collected by the assessor’s office shall be deposited with the treasurer’s office each month, § 30-1-112(1), C.R.S. Possible sources of revenue include personal property filing extension fees, § 39-5-116(1), C.R.S., or copy fees § 24-72-205(5), C.R.S. A full, true, and accurate accounting of the fees collected shall be entered into a ledger book each day, § 30-1-113, C.R.S. Any assessor who fails to make monthly deposits and/or maintain accurate records may be found guilty of a misdemeanor, and if convicted, may be removed from office, § 30-1-117, C.R.S. Review the statutes shown above and §§ 30-1-108 to 111, 30-1-114, and 30-1-116 to 117, C.R.S.
• Track and process leases and rental agreements submitted by the state, a political subdivision, or a state-supported institution of higher education that create an exemption under § 39-3-124(1)(b), C.R.S. (Refer to Real Property Leased to the State or Political Subdivision in Chapter 10, Exemptions.) The lessee is required to file a copy of the lease or rental agreement with the assessor’s office. The assessor must send a notice to the landlord acknowledging receipt of the lease or rental agreement. The notice must identify the property, the property address, and the parties to the lease or rental agreement, § 39-3-124(1)(b), C.R.S.

Appraisal Team Tasks

Real Property

• Discover, classify, list and value omitted property. (Refer to Omitted Property and Procedures for Issuing a Special NOV in Chapter 3, Specific Assessment Procedures.
• Review TD-1000 declarations and MHTDs, note any declarations that require confirmation, and code transactions for sales lists. Mail supplementary sales confirmation letters and agricultural classification questionnaires as necessary. (Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 3, Sales Confirmation and Stratification, and Chapter 5, Valuation of Agricultural Land, for examples of letters and questionnaires.)
• Review returned supplementary sales confirmation letters, agricultural classification questionnaires, and begin analysis for market adjustments and depreciation, and code transactions accordingly.
• Make changes in use as required from agricultural land underlying a residential improvement to two acres or less of such land that becomes non-integral to the agricultural operation, per §§ 39-1-102(1.6)(a)(I)(A) or (B) and 39-1-102(14.4)(a), C.R.S
• Review neighborhoods and economic areas, and make adjustments as necessary.
• Review sales for time trend analysis.
• Physically inspect as many sold properties as feasible within 30 days of the date of sale.

• Review building permits and assign field inspections for new construction to the appropriate appraiser.

  NOTE: Consult sales maps to identify sold properties and new construction that is located in the same area. When possible, all onsite inspection tasks should be completed during the same inspection.

• Conduct physical inspections of real property according to audit work schedule. (Refer to Physical Inspection of Real Property – Guidelines in Chapter 3, Specific Assessment Procedures. Also refer to Chapter 8, Assessment Planning Guidelines.)
• Prior to May 1 of the intervening year, review revaluations to ensure they meet one of the three allowable criteria: (1) to correct a clerical error or supply a clerical omission; (2) to adjust for an unusual condition as found in § 39-1-104(11)(b)(I), C.R.S.; or (3) to correct an incorrect value per Thibodeau v. Denver County Board of Commissioners, 2018 COA 124 428 P.3d 706.

• Verify that new structures, remodels, additions, and destroyed residential improvements are inspected, valued, classified according to use, listed on the assessment roll, tracked for abstract and certification purposes, and flagged for review of associated new personal property.

  NOTE: 1) When possible, all onsite inspection tasks should be completed during the same inspection. 2) When residential improvements are destroyed, demolished, or relocated as a result of a natural cause on or after January 1, 2010, the land associate with the residential improvements shall remain classified as residential for the year of destruction and two subsequent tax years. See § 39-1-102(14.4)(b), C.R.S.

Personal Property

• Inspect rotary drilling rigs.
• Conduct physical and desk audits of personal property in accordance with the county personal property audit plan. (Refer to Chapter 8, Assessment Planning Guidelines. Also refer to ARL Volume 5, Personal Property Valuation Manual, Addendum 5-A, Audit Standards.)
• Conduct research to identify new businesses and physically inspect new businesses. Twice per year, the assessor may request identifying information from owners and agents (property management companies, lodging companies, and listing services) advertising furnished residential properties for rent, § 39-5-108.5, C.R.S.
• Collaborate with real property appraisers to discover new personal property that may be associated with newly constructed or remodeled real property.
• Regularly review returned TD-1000 forms for declared personal property valuations.
• Coordinate with management team to report estimated quantities of Declaration forms and Notice of Valuation forms needed.

Oil and Gas Production

• Compare oil and gas production reported on declaration schedules with the Petroleum Information production report (Form 7) and the Oil and Gas Conservation Commission report (Form 8). (Refer to Oil and Gas General Audit Procedures in ARL Volume 3, Real Property Valuation Manual, Chapter 6, Valuation of Natural Resources.)

January – Statutory Deadlines and Duties

Assessment Date/Tax Lien Attaches

Property is assessed according to its taxable status, use, and condition on the assessment date. The tax lien attaches, and all property (taxable and exempt) located in the county on January 1, is listed on the assessment roll for the current year.

Beginning of County Fiscal Year

Colorado counties’ fiscal years run from January 1 through December 31. In other words, the current year’s budgeted funds become available on January 1. However, if funds were committed to pay for items and services before December 31 of the previous year, but the items, services or bill(s) were not received until January of the following year, the bill(s) must be paid from the previous year’s budget.

The unexpended balance of the assessor’s budget as of December 31 does not accrue to the assessor’s budget for the following fiscal year. Any unexpended balances revert back to the county’s general fund and may be used to fund other county services.

Management Team Tasks

• Ensure that funds committed in the previous fiscal year are expended by January 31.
• Conduct current year performance evaluation plans for employees, review job descriptions and work plans, and update as necessary. If performance evaluations are conducted on employees’ anniversaries, prepare a schedule for the year.
• Chart appraisal license expiration dates for employees to ensure timely renewal, and to aid in budgeting for continuing education and license renewal fees.
• Chart National USPAP Update course completion dates, as the course is required every other year.
• Compile all approved contracts from external service providers, including: printing and mailing vendors, software vendors, consultants, MLS subscriptions and other data providers.
• Chart approved pay raise dates and leave accruals.
• Complete certification of values forms (DLG57) for each entity. Mail certification of values forms to cities, counties, and special districts to the Division of Local Government by January 3, for 2024 only. Mail certification of values forms for school districts to the Department of Education by January 3, for 2024 only.

Calculate the Estimated Aggregate Value of Exempt Business Personal Property

Beginning with the 2022 tax year, assessors must calculate the aggregate value of exempt business personal property for the county and each local governmental entity. This total is calculated by multiplying the applicable baseline exemption amount by the growth factor published by the Property Tax Administrator.

Declaration Schedules Mailed

By statute, declaration schedules are to be mailed as soon after January 1 as possible. Each year, the Division of Property Taxation develops and disseminates the approved declaration schedule forms to be used by property owners to report taxable personal property, oil and gas production, and mine production. (Refer to ARL Volume 5, Personal Property Valuation Manual.)

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Verify that adequate quantities of Declaration Schedules (DS 056, DS 058, DS 060, DS 155, DS 618, DS 628, DS 648, DS 654, DS 656, and DS 658) are in stock. Orders are placed in late September and early October of the previous year.

Administration Team Tasks

• Obtain adequate postage to mail declaration schedules.
• Add new accounts to assessment roll.
• Input personal property account address changes.
• Prepare declaration schedules for mailing (print, fold, staple, sort).

Appraisal Team Tasks

• Process Declaration Schedules as received. (Refer to Processing Declarations in Chapter 3, Specific Assessment Procedures.)

Vacant Land Questionnaires Mailed

By statute, two copies of the Vacant Land Questionnaire are to be mailed to land developers as soon after January 1 as possible. The deadline for filing the completed questionnaires with the assessor is March 20. The completed questionnaires provide the information required to properly apply vacant land present worth procedures. (Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 7, Special Issues in Valuation.)

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.

Appraisal Team Tasks

• Review current mailing list of land developers who should receive the Vacant Land Questionnaire, add any new developers, and verify addresses as needed.
• Determine the number of Vacant Land Questionnaires required, and order an adequate supply of the most current form. The questionnaire is developed by the Division, and can either be photocopied or produced by a printing company.
• Prepare the questionnaires for mailing (print labels, fold, sort).

Senior and Veteran Exemption Data

Not later than January 10, assessor submits senior and veteran exemption data to the Administrator for review of any previously denied exemption. (Refer to Senior Citizen and Veteran with a Disability Exemption in Chapter 3, Specific Assessment Procedures.)

Management Team Tasks

• Coordinate data submission with computer vendor or information technology staff.
• Verify that the required data is submitted in a correct format by the deadline.
• Verify that all changes to the data are complete and finalized before filing.

Administrative Team Tasks

• Finalize any permitted changes to the data before the upload deadline (e.g. parcel splits or combinations, changes to taxes exempted or values, or last minute removals).

Tax Warrant

The assessor delivers the tax warrant to the treasurer no later than January 10. (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)

Management Team Tasks

• Monitor completion of tasks detailed for the Administrative Team, review the status of each task, and reassign or redefine priorities as necessary.
• Certify the tax warrant to the county treasurer. (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)

Administrative Team Tasks

• Before the assessor certifies the tax warrant to the treasurer, verify the accuracy of the following items:
  • Mill levies
  • Tax calculations
  • Assessed values
  • Tax Increment Financing base and increment allocations
  • Penalties for personal property declaration schedules that were filed late or not filed
  • TD-1000 and MHTD penalties
  • Entity totals balance to amount of revenue certified
• Correct errors as necessary, and rerun the tax warrant.
• Record tax area total valuations to use as beginning control totals. (Refer to Data Control Measures in Chapter 3, Specific Assessment Procedures, and Control Totals in Chapter 8, Assessment Planning Guidelines.)

January – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• Update the county’s personal property audit plan as needed, and determine the current status of physical audit inspections. The State Board of Equalization, mandates an assessor-defined 12-month audit period. The county plan is reviewed by the auditor each year. (Refer to ARL Volume 5, Personal Property Valuation Manual, Chapter 5, Addendum 5-A, Audit Standards.)
• Review the status of the physical inspection of real property in accordance with the county’s re-inspection cycle. (Refer to Chapter 8, Assessment Planning Guidelines.)
• Any real property leased or rented for at least a year by the State of Colorado, a political subdivision, or a state-supported institution of higher education is subject to an exemption if the lease is submitted to the assessor by the aforementioned political subdivision. Review newly submitted leases and previously submitted leases to determine the current year’s exemptions.
• Pursuant to § 39-2-109(1)(d), C.R.S., submit forms for Division approval. Once the forms are approved, order the appropriate quantity of each form.
• Write media releases detailing appraiser’s activities and the need for market-based data to accurately value property in the county.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• The most recent version of the taxpayer information brochures are available digitally on the Division's website each brochure. For printable PDF versions, please contact the Division. 

• Exempt Property Master Record:

  Review the Exempt Property Master Record sent to the assessor by the Division in January. This report lists properties that are exempt because they are used solely and exclusively for religious, strictly charitable, or private school purposes. Compare the Master Record to the county records to identify any inconsistencies. Inconsistencies should be reported to the Division’s Exemptions Section. Correct abstract codes as necessary.

  If title to property granted exemption by the Division is transferred to a new owner, place the property on the assessment roll in the name of the new owner effective as of the date of such transfer. Notify the Division and provide the names of the grantor and grantee, the legal description, the parcel identification number, and the date of the transfer. Notify the new owner that in order to claim exemption for the property, a new application for exemption must be filed, even if the new owner is affiliated with the previous owner. Because of the change in taxable status, a proration of value is necessary, and a Special Notice of Valuation must be mailed. (Refer to Chapter 4, Assessment Math; Chapter 3, Specific Assessment Procedures; and Chapter 9, Forms Standards.)

  (Refer to Exemptions Determined by the Administrator in Chapter 10, Exemptions.)

• Severed minerals:

  Create new accounts or activate existing accounts for mineral interests that were severed from the surface estate or from an existing mineral estate during the previous year.

  Deactivate accounts for severed mineral interests which expired in the previous year (time reservations).

  Create new accounts or activate existing accounts for severed mineral interests that are no longer a part of a producing mineral interest.

  Deactivate accounts for severed mineral interests that are now a part of a producing mineral interest.

  (Refer to Severed Minerals – Administrative Procedures in Chapter 3, Specific Assessment Procedures.)

• Change tax area codes for titled manufactured homes that moved within the county in the previous year.

• Prorate values:

  Raise to full value the titled manufactured homes that moved into the county from out of state during the previous year.

  Deactivate accounts for all titled manufactured homes that moved out of the state during the previous year.

  Remove prorated value of structures that were destroyed in the previous year, and confirm the correct land classification with appraiser.

  If the proration of value of the structure is due to a natural disaster, the value removed from the tax roll will need to be tracked in order to report the amounts to the treasurer for reimbursement from the state.

  Adjust value of real property that changed taxable status after January 1 of the previous year.

  NOTE: This task requires close collaboration with the appraisal team, especially if the property is changing from exempt to taxable. An inspection may need to be made to confirm inventory, use, and the corresponding value. This new value comes from the appraisal side, and if occurring in an intervening year, constitutes an unusual condition. The Notice of Value must accurately reflect the change in class and value from the prior year. (Refer to Prorating Values in Chapter 4, Assessment Math.)

• Annexation orders:

  Process any annexation orders that were filed in the previous year. (Refer to Boundary Changes for Taxing Entity in Chapter 3, Specific Assessment Procedures.)

  Notify appropriate personnel of new tax areas.

  Verify proper coding of annexed properties on assessment records and computer tables.

• Change abstract classification code on parcels that changed use after January 1 of the previous year, i.e., formerly vacant parcels that are now improved, formerly improved parcels that are now vacant, etc.

• Possessory interests:

  Create new accounts or activate existing accounts for new possessory interests.

  Deactivate possessory interest accounts with expired leases from the tax roll.

• Senior citizen and veteran with a disability exemptions:

  Remove the exemptions for properties that changed ownership or occupancy in the previous year. (Refer to Revocations in Chapter 3, Specific Assessment Procedures.)

• Correct any errors discovered after the tax warrant was produced. (Refer to Changes to Tax Warrant in Chapter 7, Abstract, Certification and Tax Warrant.)
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Begin gathering information concerning taxable possessory interests, such as leases or permits involving private users of real or personal property otherwise exempt from property taxation. (Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 7, Special Issues in Land Valuation.)
• Collect and analyze local cost and market data for CAMA systems.
• Begin review of neighborhood/economic area boundaries and redefine as necessary.
• Inspect or confirm completion status for structures that were partially complete on the previous assessment date.
• Identify properties that changed use or were subject to the unusual conditions provisions as defined in § 39-1-104(11)(b)(I), C.R.S., in the previous year.
• Analyze current replacement cost new tables.
• Mail income and expense questionnaires to commercial property owners. Analyze completed questionnaires upon receipt.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• Deactivate accounts for personal property that was moved out of the state, personal property owned by businesses that have closed, personal property that was converted from commercial use to personal use, and personal property that was destroyed in the previous year.
• Examine newspapers, telephone directories, sales tax applications, building permits, utility connections, internet web sites, etc., to discover new personal property accounts. Twice per year the assessor may request identifying information from owners and agents (property management companies, lodging companies, and listing services) advertising furnished residential properties for rent, § 39-5-108.5, C.R.S.
• Inspect new businesses according to the county personal property audit plan.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

February – Nondate-Specific Statutory Duties

• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• If forms for the current tax year have not been submitted to the Division for approval, submit the following: Notices of Valuation, Protest forms, and Notices of Determination. Once the forms are approved, order the appropriate quantity of each form. (Refer to Chapter 9, Form Standards.)

Administrative Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Input new neighborhood codes.
• Ensure that all sales that occurred within the data-gathering period have been coded.
• Calculate and review preliminary sales ratio statistics.
• Analyze resource data to be used in the income approach.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• Process returned Personal Property Declaration Schedules. (Refer to Processing Personal Property Declarations, Chapter 3, Specific Assessment Procedures.)
• Perform a physical audit of suspect accounts and accounts valued using best information available, if included in the county personal property audit plan.
• Perform market analyses as appropriate.
• Analyze data for best information available appraisals. (Refer to ARL Volume 5, Personal Property Valuation Manual, Chapter 3, Valuation Procedures.)
• Field-inspect new businesses according to the county plan.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

March – Statutory Deadlines and Duties

Forested Agricultural Land - Classification

Management Team Tasks

• Review the Colorado State Forest Service (CSFS) report that lists parcels that are currently under a forest management plan and are eligible for agricultural classification.
• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Change the classification of parcels designated as agricultural forest land in the previous year that do not appear on the current year’s forest service list. Assign the proper classification code according to the current use of the parcel.
• Change the classification of parcels appearing on the forest service list for the first time.
  NOTE: The CSFS can verify the acreage of each parcel under the forest management plan.

Appraisal Team Tasks

Real Property

• Determine the appropriate approach(es) to value each parcel reclassified as a result of the CSFS report. (Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 5, Valuation of Agricultural Land.)

Vacant Land Questionnaires Due March 20

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.

Appraisal Team Tasks

Real Property

• Review questionnaires; if incomplete, contact appropriate developer(s).
• Calculate present worth of vacant land. (Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 4, Valuation of Vacant Land Present Worth.)
• Correlate documentation for actual land values.

March – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• For an early April publication, distribute the personal property media release prepared by the Division for publication.
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• Complete processing annexations recorded in the previous year that became effective January 1.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Complete input of qualified and unqualified sales data.
• Analyze data for market adjustments to be used in valuation models.
• Review test land valuations, adjust valuation tables as necessary.
• Finalize recommended cost, market, and income approach data.
• Run test valuations and statistical analyses of sold properties to assure accuracy and compliance for the established models used to value property.
• Verify that sold properties and improvements that were partially completed or remodeled in the previous year are physically inspected by the end of the month.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• Process completed Personal Property Declaration Schedules. (Refer to Personal Property Issues and Processing Declarations in Chapter 3, Specific Assessment Procedures.)
• Perform a physical audit of suspect accounts and accounts valued using best information available, if included in the county personal property audit plan.
• Perform market analyses as is appropriate.
• Analyze data for best information available appraisals.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

April – Statutory Deadlines and Duties

Declaration Schedules Due

Declaration Schedules are distributed to owners of personal property, oil and gas property, and producing natural resources property in January and must be completed and returned by April 15. Property owners may file a written request for an extension of 10 days or 20 days. (Refer to ARL Volume 5, Personal Property Valuation Manual.)

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.

Appraisal Team Tasks

Personal Property

• Process requests for deadline extensions.
• Process completed Declaration Schedules. (Refer to Processing Declarations in Chapter 3, Specific Assessment Procedures.)
• Apportion value of drilling rigs according to operator log. (Refer to Oil and Gas Skid-Mounted Drilling Rigs in Chapter 7, Special Issues, ARL Volume 5, Personal Property Valuation Manual.)
• Attach date-stamped envelopes to declaration schedules that were not timely filed.
• Flag accounts filed after April 15, or after extension expiration, for the late filing penalty.
• Notify owners that are subject to the nondisclosure penalty.
• Review personal property audits.
• Spot check personal property processing and calculations.
• Compare values with market analysis by property type.

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

  Tax Year	Exemption Threshold
  2009 – 2010	$4,000
  2011 – 2012	$5,500
  2013 – 2014	$7,000
  2015 – 2016	$7,300
  2017 – 2018	$7,400
  2019 – 2020	$7,700
  2021 – 2022	$50,000
  2023-2024	$52,000
  Thereafter	Inflation factor calculated by the Division

Best Information Available Valuations

Property owners who fail to return Declaration Schedules or request an extension by April 15 are subject to a best information available valuation. Property owners who failed to timely file a Personal Property Declaration Schedule or oil and gas leaseholds statement are subject to a late filing penalty. The penalty amount is $50 or 15% of the tax due on the assessed value of the personal property, whichever is less. The penalty amount for oil and gas leaseholds is $100 for each calendar day the statement is delinquent, not to exceed $3,000 in any calendar year.

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review best information available valuations for supporting documentation and validity of value.

Appraisal Team Tasks

Personal Property

• Review personal property data by business type and assign best information available valuations as appropriate. (Refer to Best Information Available Valuation in Chapter 3, Valuation Procedures, ARL Volume 5, Personal Property Valuation Manual.)
• Flag best information available accounts that are subject to the late filing penalty.
• Flag accounts for failure to fully disclose as appropriate.
• List best information available accounts for audit and report to board of county commissioners (BOCC) in July.

Protest Hearings – Public Notice

The assessor is required to give public notification that real and personal property protest hearings will be held. This notice should appear in at least one issue of a local newspaper, or if no local newspaper exists, the notice should be posted in the offices of the assessor, the treasurer, the clerk and recorder, and in at least two other public places located in the county seat. This public notice is required by statute; therefore, the Division recommends retaining proof of publication.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Publish or distribute public notice of real and personal property protest hearings.
• File proof of publication in public notice file.

April – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review final reconciled appraisal models incorporating cost, market, and income approach data.
• Develop plan and work flow for real and personal property protests. Set deadlines for establishing final determinations of value and printing Notices of Determination.
• Familiarize staff with protest procedures and assign duties.
• Supervise the review of appraisal data that will merge into tax roll data: control totals reports, percent change reports, abstract change reports; verify that class code changes and value changes are accurate; confirm that necessary corrections are completed.
• Confirm that new appraisal data is successfully merged into tax roll data.
• Obtain adequate postage to mail Real and Personal Property Notices of Valuation.
• Coordinate the processing and/or printing of Notice of Valuation forms with appropriate personnel.
• The most recent version of the taxpayer information brochures are available digitally on the Division's website. Current brochures are available online. For printable PDF versions, please contact the Division. 
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• Certify to the treasurer the Real Property Transfer Declaration (TD-1000) and Manufactured Home Transfer Declaration (MHTD) penalties for the first quarter of the year to ensure that the treasurer is aware of unpaid penalties prior to the sale of property.
• Contact post office regarding requirements for mailing Notices of Valuation.
• Obtain adequate postage to mail Real and Personal Property Notices of Valuation.
• Prepare copies of protest recording documents such as master log, protest forms, agency assignment forms, appraisal and telephone contact logs.

• Prior to merging appraisal and administrative systems, collaborate with appraisal team to:

  Verify that new construction and remodeling changes have been input.

  Verify that records pertaining to new subdivisions, new condominium plats, and properties that changed from exempt to taxable have been updated.

  Verify that address changes are current.

  Verify that property transfers are current.

  Verify that appraisers have completed final value entries.

• Real Property Notices of Valuation:

  Schedule processing of Notices of Valuation with appropriate personnel.

  Run and review Notice of Valuation preview report for errors.

  Submit Notices of Valuation data to printing vendor OR print Notices of Valuation, sort, and prepare for mailing.

  Run control totals (Abstract Reports) on new valuations.

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Review test valuations and statistical analyses for each area to be revalued in current year.
  Compare oil and gas production declared by the taxpayer with the Colorado Oil & Gas Conservation Commission database.
• Request supporting documentation from owners or operators of oil and gas leaseholds and lands who submitted declaration schedules. The owners or operators must supply the information within 30 days to avoid fines, § 39-7-101, C.R.S.
• Review adjustments to valuation tables and final statistical analyses.
• Make adjustments to valuation tables as necessary and run final statistical analyses.

• Assemble appraisal work files and publish summary appraisal analysis and conclusions for taxpayer review, to include:

  Sales data maps and spreadsheets by neighborhood or analysis area.

  A list of income data in non-confidential format.

  Other statistical data used in current year such as documentation for location adjustments, gross rent multipliers, capitalization rates, and market adjustments for time and depreciation.

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• Process completed Declaration Schedules. (Refer to Processing Declarations, in Chapter 3, Specific Assessment Procedures.)
• Perform a physical audit of best information available and suspect accounts, if included in the county plan.
• Perform market analyses as appropriate.
• Prepare data for best information available valuations.
• Personal property is exempt if its actual value is equal to or less than the exemption threshold shown for the applicable tax year. Exempt personal property accounts should be flagged and reviewed annually.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

May – Statutory Deadlines and Duties

Special Districts – Filing Deadline

Title 32 special districts that are making boundary changes without an election must file the required documents with the clerk and recorder by May 1 for the change to be effective in the current assessment year.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Obtain timely-filed boundary change documents from the clerk and recorder.
• Process inclusions and exclusions. (Refer to Boundary Changes for Taxing Entity, in Chapter 3, Specific Assessment Procedures.)
• Change parcel maps as necessary. (Refer to Mapping Processes and Boundary Changes for Taxing Entity, in Chapter 3, Specific Assessment Procedures.)

Appraisal Team Tasks

Real Property

• Update neighborhood and economic area narratives to reflect new services provided by special districts.

Real Property NOVS – Mailing Deadline

No later than May 1 of each year, the assessor must mail an approved Notice of Valuation and Protest form to each property owner, except operators of oil and gas property, and owners of producing and nonproducing mines. Upon taxpayer’s request, the NOV may be sent electronically.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Ensure that Real Property Notices of Valuation are postmarked no later than May 1.

Administration Team Tasks

• Complete processing Notices of Valuation and mail.
• Provide for electronic transmission of those NOVs requested by taxpayers.

Protest Period – Use of Alternate Protest and Appeal Procedure

Pursuant to § 39-5-122.7(4), C.R.S., all counties with a population greater than 300,000 shall use the alternate protest and appeal procedure during biennial reappraisal years.The governing body of a county may, at the request of the assessor, elect to use an alternate protest and appeal procedure for real and personal property. If implemented, the county shall notify the Board of Assessment Appeals (BAA) and the district court. The alternate procedure moves several deadlines in the appeal process, which results in an additional 60 days for the assessor to respond to protests. (Refer to §§ 39-5-122(2), 39-5-122.7(1), and 39-8-106(1), 107(2), C.R.S.)

Management Team Tasks

• When not required, but if desired, submit request to the county commissioners to use alternate protest and appeal procedure.

Standard Protest Period for Real Property Begins

Property owners have the right to protest the valuation or classification of their real property. Protests may be made to the assessor in person or in writing beginning on the first working day after Notices of Valuation are mailed. Protests must be postmarked or delivered in-person no later than June 8.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Hear taxpayer protests and/or review appraisal team recommendations, and render final determinations.
• Monitor protest log.
• Assign physical inspections as needed.

Administration Team Tasks

• Greet the public, provide general information on the protest process, and log protests.
• Log telephone calls as an inquiry and give general information.

Appraisal Team Tasks

Real Property

• Hear taxpayer protests and/or review written protests, request additional information if necessary, and document recommendations for adjustment/denial.
• Physically inspect property as required, and report findings and recommendations for adjustment/denial.
• Input corrections to property characteristics file.
• Input adjustments, denials, and changes to the assessment roll.

Senior Citizen and Veteran With A Disability Exemptions – Mail Notice

Assessors must annually mail a notice to each owner of residential property explaining the existence of the Senior Citizen and Veteran with a Disability exemptions only if the notice is not included in the tax bill. The notice for the senior exemption must be included with the treasurer’s tax bill; however, if the notice for the veteran with a disability exemption is not also included in the treasurer’s tax bill in January, the assessor must send a notice informing residential property owners about the veteran with a disability exemption no later than May 1 of each year, § 39-3-204, C.R.S. Notification may be provided in one of two formats: 1) the notification insert language, or 2) the Senior Citizen Exemption and the Veteran with a Disability Exemption brochures. The potential advantages to each format are as follows:

• Insert – the least expensive notice to print and mail.
• Brochures – places the most comprehensive description of the senior citizen and veteran with a disability exemptions in the hands of each residential owner.

(Refer to Chapter 9, Form Standards, for the current insert language or go to Publications and Reports for the current brochures.)

Management Team Tasks

• Discuss exemptions with staff to ensure applicant qualifications and deadlines are understood.
• Monitor completion of tasks detailed for the Administrative Team, review the status of each task, and reassign or redefine priorities as necessary.

Administrative Team Tasks

• Run ownership report for all residential real property.
• Obtain current insert language or Senior Citizen Exemption and Veteran with a Disability Exemption brochures.
• If the notice will be mailed with the tax bill, work with the appropriate staff in the treasurer’s office to coordinate the mailing. Otherwise, prepare the insert or brochures for mailing separately or with the Notice of Valuation.

State Lands Sold

All equities in state land are subject to taxation. No later than May 1 of each year, the director of State Board of Land Commissioners provides to each county assessor a list of state lands sold.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Review the list of sales provided by the State Board of Land Commissioners and remit the fee for the list to the Land Commission. If the list is not received by May 1, contact the State Board of Land Commissioners at 303-866-3454, 1127 Sherman Street, Suite 300, Denver, CO 80203.
• If a patent from the State of Colorado has been recorded, calculate the prorated value of each account based on the date of sale as indicated in the patent, and flag accounts for review next year. (Refer to Chapter 3, Specific Assessment Procedures)
• Note the current value on the appraisal record, and update the value on the computer system.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Monitor progress of personal property declaration processing to ensure completion by June 10.
• Coordinate production of Personal Property Notices of Valuation and Notices of Determination with appropriate personnel.
• Discuss appeal process, timeframe, and requirements with county commissioners. For statutes pertaining to independent referees (hearing officers) for county board of equalization hearings, refer to §§ 39-8-102 and 39-8-107, C.R.S. For the statute pertaining to arbitrators for hearings in lieu of BAA or district court, refer to § 39-8-108.5, C.R.S.
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• Prepare out-of-state ownership list for Department of Revenue by the end of the month. The report deadline is June 1.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Continue physical inspection of properties as required, report findings and recommendations for adjustment/denial and hear protests as assigned.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• Complete processing Personal Property Declaration Schedules.
• Perform a physical audit of best information available and suspect accounts if included in the county plan.
• Perform market analyses as appropriate.
• Analyzes data for best information available valuations.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

June – Statutory Deadlines and Duties

Out-of-State Ownership Listing

The assessor must produce and deliver to the Department of Revenue a list of the names and addresses of all nonresidents of the state who own real or personal property within the county.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Prepare and deliver out-of-state ownership list to Department of Revenue. (Refer to Out-Of-State Ownership List in Chapter 3, Specific Assessment Procedures.)

Protest Period – Last Day for Real Property Protests

Valuation and classification protests to the assessor must be postmarked or delivered no later than June 8.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Sign and mail letters to property owners who did not timely file protests.
• Assign physical inspections as needed.
• Review and make final decisions on recommendations of Appraisal Team regarding each protest.

Administration Team Tasks

• Date stamp real property protests delivered in person after June 8.
• Staple postmarked envelopes to protests that were postmarked after June 8.
• Notify real property owners who did not timely file a protest that their protest will not be considered, a Notice of Determination will not be issued, and that the only remaining administrative remedy is to file a petition for abatement or refund of taxes after receipt of the tax bill.
  NOTE: Issuing Notices of Determination on protests that were not timely filed reopens the property owners’ rights to appeal to the CBOE.

Appraisal Team Tasks

Real Property

• Continue to physically inspect properties as required, and report findings for adjustment/denial.
• Input adjustments, denials, and change the assessment roll.

Drilling Rig Value Apportionment

The first Colorado county in which a drilling rig was operated, stored, or maintained during the previous calendar year is known as the county of original assessment. The assessor of the county of original assessment determines the value of the drilling rig, apportions the value between the counties in which the drilling rig was located during the preceding year based on the owner’s drilling rig log, and mails or delivers a copy of the drilling log and the value apportionment to the assessor of each Colorado county in which the rig was located. A copy of the value apportionment is mailed to the rig owner.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Apportion the value of the drilling rig between the counties in which the rig was located in the preceding year based on the owner’s drilling rig log.
• Mails or delivers the value apportionment and copy of the drilling log to the assessor of each Colorado County in which the rig was located in the preceding year.
• Enter the apportioned value for both the county of original assessment rigs as well as the values for rigs apportioned by other counties to the assessment roll.

Appraisal Team Tasks

• Determine the value of your county of original assessment drilling rigs to be apportioned.

Personal Property – NOV Mailing Deadline

No later than June 15, the assessor must mail an approved Notice of Valuation and Protest Form to each personal property owner. Upon the taxpayer’s request, the NOV may be sent electronically. For personal property located on oil and gas leaseholds and lands, the Notice of Valuation and Protest Form is mailed or e-mailed to the operator who filed the declaration schedule, §§ 39-5-121(1.5)(b) and (1.7), C.R.S.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Ensure that Notices of Valuation are postmarked no later than June 15.

Administration Team Tasks

• Run and review Notice of Valuation preview report for errors.
• Run control totals on new valuations.
• Provide for electronic transmission of those NOVs requested by taxpayers.
• Print Notices of Valuation, sort, and prepare for mailing by June 15.

Appraisal Team Tasks

Personal Property

• Prepare copies of personal property market analyses for distribution to property owners who protested, if applicable.
• Return records to filing cabinets and prepare meeting areas for protest hearings.

Personal Property Protest Period

From June 15 through July 5, the assessor hears all objections and protests concerning personal property, county of original assessment drilling rigs, and all producing natural resources property.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Hear taxpayer protests on the valuation of personal property, and review and make final decisions on recommendations of Appraisal Team on each protest.
• Assign physical inspections as needed.

Administration Team Tasks

• Greet the public, provide general information on the protest process, and log protests.
• Log telephone calls and provide general information.
• Date stamp mailed protests as received.

Appraisal Team Tasks

Personal Property

• Physically inspect property as required, record data, and recommend adjustments/ denials.
• Hear and/or review protests, prepare documentation, and recommend adjustments/ denials.
• Input corrections to property characteristics file.
• Input adjustments, denials, and change assessment roll.

Personal Property Protest Mailing Deadline

Personal property protests must be postmarked or delivered no later than June 30 to be considered timely filed. This includes protests on producing natural resources property.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Sign and mail letters to property owners who did not timely file their protests.

Administration Team Tasks

• Staple envelopes to protests that are postmarked after June 30.
• Notify personal property owners who did not timely file a protest that their protest will not be considered, a Notice of Determination will not be issued, and that the only remaining administrative remedy is to file a petition for abatement or refund of taxes after receipt of the tax bill.
  NOTE: Issuing a Notice of Determination on protests that were not timely filed reopens the property owners’ rights to appeal to the CBOE.

NODs for Real Property Protests – Mailing Deadline

The assessor must complete and mail two copies of the Notice of Determination to each property owner who filed a protest for real property. If the assessor does not adjust the property value as a result of the protest, the basis of the decision must be included on the notice. For counties using the alternate protest and appeal procedure, the deadline for mailing Notices of Determination is August 15.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Ensure that Notices of Determination are mailed no later than the last working day of June unless using the alternate protest and appeal procedure.
• Prepare summary of real property protests for the assessor’s presentation to the CBOE.

Administration Team Tasks

• Obtain adequate postage to mail Notices of Determination.

Appraisal Team Tasks

Real Property

• Complete physical inspections, make recommendations to management, and input adjustments.
• Complete determinations for real property protests.
• Verify that all adjustments and denials have been input, run Notices of Determination, spot check notices for accuracy, and prepare for mailing prior to the last working day in June.

Deadline for New Political Subdivisions

New political subdivisions wishing to levy in the current assessment year must notify the assessor and the county commissioners that the political subdivision is organized prior to July 1.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Process formation documents that were timely filed.
• Make changes to parcel and tax area maps as necessary. (Refer to Mapping Processes and Boundary Changes for Taxing Entity, in Chapter 3, Specific Assessment Procedures.)

Appraisal Team Tasks

Real Property

• Update neighborhood and economic area narratives to reflect services provided by new political subdivisions.

Special Districts’ Deadline for Inclusion Election

Taxing entities that make boundary changes through the election process must file the required documents with the clerk and recorder by July 1 for the change to be effective in the current assessment year.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.

Administration Team Tasks

• Ensure that inclusion documents were timely filed.
• Develop new tax area codes as necessary.
• Input new tax area coding as necessary.
• Verify proper tax area coding on assessment records and computer tables.
• Change parcel maps as necessary.

Appraisal Team Tasks

Real Property

• Update neighborhood and economic area narratives to reflect new services provided to properties included in special districts.

June – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review list of appeals to CBOE, and assign staff responsible for preparing and presenting cases on real and personal property appeals.
• Begin preparing report on total real property valuation, real property protests and the status/outcome of each case, best information available assessments on personal property, and the status/outcome of each personal property protest.
• Begin gathering data for budget planning, i.e., staff education requirements, appraiser test and licensing fees, vendor prices, etc. (Upon request, the Division will provide assistance on the budgeting process.)
• Prepare and present errors/adjustments that need to be made by the CBOE.
• Remit to the treasurer all fees collected to date, and an itemized statement of fees. Reconcile the statement with the assessor’s collection register.
• Review the treasurer’s delinquent tax sale list against the Administrator’s June 1 report of pending applications for exemption. Remove all properties from the list for which an application for exemption is pending with the Division of Property Taxation, § 39-2-117(1)(a), C.R.S.
  For exemption applications filed after June 1 of each year, the applicant is responsible for notifying the county treasurer in writing of the pending application to prevent the property from being sold at the tax sale.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Prepare cases and presentations for appeals to the CBOE as assigned.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

July – Statutory Deadlines and Duties

CBOE Begins Hearing Appeals

Property owners who disagree with the assessor’s determination may appeal to the CBOE. The CBOE begins hearing appeals on July 1 and continues through August 5.

Taxpayers protesting rent producing commercial real property are required to submit income data as described in § 39-8-107(5)(a)(I), C.R.S., to the assessor no later than July 15. This requirement is only for taxpayers filing protests in counties using the alternate protest period, § 39-5-122(2.5), C.R.S.

For counties using the alternate protest and appeal procedure, the CBOE begins hearing appeals on September 1, §§ 39-5-122.7 and 39-8-104(2), C.R.S.

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review list of CBOE appeals, and assign staff responsible for preparing and presenting cases to CBOE on real and personal property.

Appraisal Team Tasks

• Prepare and present cases to CBOE as assigned.

Veteran With A Disability Exemption Application Deadline

Veterans with a disability must mail or deliver a completed exemption application to the their county assessor by July 1. Only applications that are approved by the county assessor will be considered for exemption. The county assessor may accept applications until August 1 if the applicant can show good cause for missing the July 1 deadline.

The surviving spouse of a prequalifying veteran with a disability may apply for the same exemption for the same property used as their primary residence. Application is to the county assessor where the property is located by July 1. The county assessor may accept applications until August 1 (not statutory) if the applicant can show good cause for missing the July 1 deadline.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Discuss with staff the procedures for flagging exempted properties.

Administration Team Tasks

• Verify qualifications for applications received from the owner. Flag exempted properties. Notify owners of properties that do not meet the required qualifications.

State Assessed NOVS Mailed by Administrator

The Administrator sends Notices of Valuation for state assessed property to assessors and the owners of state assessed property. The assessor is required to enter the value of state assessed property on the assessment roll.

Management Team Tasks

• Review state assessed company valuations and county apportionment. Protests of state assessed values and/or apportionment must be filed before July 15.

Protest Hearings on Personal Property Conclude

Although personal property protests must be filed by June 30, hearings continue through July 5.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Hear taxpayer protests on the valuation of personal property, and review and make final decisions on recommendations of Appraisal Team on each protest.
• Assign physical inspections as needed.
• Review and make final decisions on recommendations provided by the Appraisal Team on each personal property protest.

Administration Team Tasks

• Input adjustments, denials, and change the assessment roll.
• Date stamp personal property protests that are delivered after the filing deadline.
• Notify personal property owners who did not timely file a protest that the protest will not be considered, a Notice of Determination will not be issued, and that the only remaining administrative remedy is to file a petition for abatement or refund of taxes after receipt of the tax bill.
  NOTE: Issuing a Notice of Determination on protests that were not timely filed reopens the property owners’ rights to appeal to the CBOE.

Appraisal Team Tasks

Personal Property

• Complete valuation recommendations and input changes.

Deadline for Mailing Personal Property NODs

On or before July 10, the assessor must mail two copies of the Notice of Determination to owners who protested the value of their personal property.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Ensure that Notices of Determination are mailed no later than July 10.
• Prepare summary of personal property protests for the assessor’s presentation to CBOE.

Administration Team Tasks

• Obtain adequate postage to mail Notices of Determination.
• Verify that all adjustments and denials have been input, run Notices of Determination, spot check Notices of Determination for accuracy, and prepare NODs for mailing by July 10.

Appraisal Team Tasks

• Complete review of protests, make recommendations, and input changes to value.

Assessor’s Report to CBOE on Taxable Property

By July 15 the assessor must compile and report to the CBOE the assessed value of all taxable property in the county, and submit a list of all real and personal property protests, the status/outcome of each protest, a list of movable equipment apportionments, and a list of owners who failed to return a Personal Property Declaration Schedule.

For counties that use the alternate protest and appeal procedure, the report deadline is September 15, §§ 39-5-122.7 and 39-8-105(1), C.R.S.

Management Team Tasks

• Report to the CBOE the total valuation of all taxable property and submit a list of all real and personal property protests, the status/outcome of each protest, a list of movable equipment apportionments, and a list of owners who failed to return a Personal Property Declaration Schedule, on July 15.

State Assessed Protest Period Ends

County assessors and commissioners may protest the state assessed value or apportionment of value on or before July 15.

Management Team Tasks

• Prepare and present protests to Administrator before July 15.

Senior Citizen Property Tax Exemption Application Mailing Deadline

Senior citizen exemption applications must be postmarked no later than July 15 to be considered timely filed. If an individual wishes to claim the exemption but has not timely filed an exemption application with the assessor, the assessor must accept late applications through August 15.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Staple envelopes to application forms that are postmarked after July 15. Submit late applications to the Management Team for further review.
• Begin reviewing applications to verify owner qualification. Flag accounts that meet the required qualifications. Notify owners that do not meet the required qualifications.

Administration Team Tasks

• Staple envelopes to application forms that are postmarked after July 15. Submit late applications to the Management Team for further review.
• Begin reviewing applications to verify owner qualification. Flag accounts that meet the required qualifications. Notify owners that do not meet the required qualifications.

July – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Begin evaluating appeal workload.
• Prepare budget for presentation to BOCC, and verify date of presentation.
• Develop denial letter for individuals who filed incomplete or non-qualifying senior citizen exemption applications. The letter must include the reason for the denial and the remedies available, should the applicant choose to protest the denial.
• Remit to the treasurer all fees collected to date, including an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• Certify to the treasurer the TD-1000 and MHTD penalties for the second quarter of the current year. Certifying this information prior to producing the tax warrant provides the treasurer with unpaid penalty information in the event the property is sold.
• Review control total reports, verify that all changes in value as a result of protests were input.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

August – Statutory Deadlines and Duties

Administrator Renders Decisions on State Assessed Property Protests

The Administrator must render written decisions on state assessed property protests no later than August 1. The Administrator’s decisions are mailed to the appropriate county assessors and state assessed companies.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Verify that adjustments in value made by the Administrator as a result of protests are input.
• Review tax area apportionments for accuracy.

Administration Team Tasks

• Distribute value of state assessed property to the appropriate tax areas based on locational data supplied by the state assessed company. Check the sum of each state assessed company’s value distribution(s) to ensure that all distribution(s) match the value apportioned to the county by the Administrator. (Refer to Chapter 11, State Assessed Property.)
• Input distributed valuations to assessment roll.

CBOE Concludes Hearings

The CBOE must conclude appeal hearings for real and personal property and render decisions no later than August 5. CBOE decisions must be mailed within five business days after the decision was rendered.

For counties that use the alternate protest and appeal procedure, the CBOE concludes appeal hearings for real and personal property and renders decisions no later than November 1, §§ 39-5-122.7 and 39-8-107(2), C.R.S.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review CBOE orders.

Administration Team Tasks

• Run abstract reports by subclass, school district, city, and town before changes ordered by the CBOE are entered.

Appraisal Team Tasks

• Change assessment roll and appraisal records to reflect changes ordered by the CBOE.

Auditor Submits Preliminary Report

The annual study auditor must furnish each county assessor with the preliminary results of the audit.

Management Team Tasks

• Monitor completion of task detailed for the Appraisal Team, review the status of task, and reassign or redefine priorities as necessary.
• Review data used by the auditor, compare with the data gathered and analyzed by the appraisers, and note any discrepancies.
• Contact annual study auditor regarding any discrepancies and resolve before the auditor’s final report is issued on September 15.

Appraisal Team Tasks

Real Property

• Review data in the audit report, verify data, and note any discrepancies.

Denial of Senior Citizen and Veteran with a Disability Exemption Applications

The assessor mails a denial letter to individuals who filed incomplete or non-qualifying senior citizen, veteran with a disability, or surviving spouse of a prequalifying veteran with a disability exemption applications. The letter must include the reason for the denial and the remedies available, should the applicant choose to protest the denial.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review report of residential real property owners who filed incomplete or non-qualifying exemption applications.
• Provide final report to BOCC. Review denials with BOCC in preparation for appeal hearings.

Administration Team Tasks

• Run report of residential real property owners who filed incomplete or non-qualifying exemption applications.
• Verify report data.
• Finalize denial letter.
• Prepare letters for mailing.

Real and Personal Property NOD Mailing Deadline for Countries That Elected to Use the Alternate Protest and Appeal Procedure

For counties that elected to use the alternate protest and appeal procedure, the assessor must complete and mail two copies of the Notice of Determination to each property owner who protested the value or classification of real property and to each property owner who protested the value of personal property. If the assessor denies the protest, the reason(s) for the decision must be included on the notice.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Ensure that Notices of Determination are mailed no later than August 15.
• Prepare a summary of real property protests for the assessor’s presentation to the CBOE.

Administration Team Tasks

• Obtain adequate postage to mail Notices of Determination.

Appraisal Team Tasks

Real Property

• Complete physical inspections, make recommendations to management team, and input adjustments.
• Complete recommendations/determinations for real property protests.
• Verify that all adjustments and denials have been input, run Notices of Determination, spot check notices for accuracy, and prepare for mailing by August 15.

Abstract of Assessment Report

The assessor must complete and file the Abstract of Assessment (abstract) to the Administrator no later than August 25. For counties that elected to use the alternate protest and appeal procedure, the Division requests a preliminary abstract no later than August 25, followed by a final abstract no later than November 21. Abstract reports that are improperly completed or out of balance may be returned to the county assessor.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review Abstract of Assessment for accuracy. Verify CBOE adjustments, and the value of new construction and demolition.
• Review balancing procedures with appropriate staff.

Administration Team Tasks

• Run abstract reports by subclass, school district, city, and town both before and after CBOE adjustments are entered.
• Input valuations, unit counts, CBOE adjustments, and value of new construction/demolition into the Division’s online Abstract of Assessment system.
• Verify that the total value of the property class pages +/- CBOE adjustments EQUALS the school district total value unless the county or a school district exempts all or a portion of personal property, and that the state assessed total matches the final report of state assessed values. (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)
• Print three copies of the abstract and submit to the Management Team for review and signature by the assessor and the chair of the BOCC.
• Retain one paper copy of the abstract.
• Send two paper copies of the abstract to the Division.

Certification of Values to Taxing Entities

The assessor is required to certify to each taxing entity the total assessed value of property within the entity’s boundaries, and the value attributable to new construction, annexation, inclusion, increased production of mines and oil and gas, and federal property that has become taxable. Assessors should certify to all entities, including those that did not levy for property tax the previous year.

For counties that elected to use the alternate protest and appeal procedure, the assessor certifies values as of August 25, without CBOE adjustments. Changes in value that occur after August 25 are reflected in the December recertification.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review certification forms and letters for accuracy before mailing.

Administration Team Tasks

• Verify and update taxing entity data such as address and contact person.
• Run certification reports (with CBOE adjustments) by taxing entity.
• Compile data needed to complete the certification of values form (DLG 57).
  (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)
• Verify that the total value of the county equals the total value of the school district, unless the county or a school district exempts all or a portion of personal property.
• Verify that the abstract values balance with the certification values.
  (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)
• Write certification letters to entities indicating the date by which the entities must certify levies to the BOCC. Mail letters to individual entities.
• Complete certification of values form (DLG 57) for each entity. Mail certification of values forms for cities, counties, and special districts to the Division of Local Government by August 25. Mail certification of values forms for school districts to the Department of Education by August 25.
  NOTE: The certification letter may include the information provided on the DLG 57 form or a copy of the completed certification of values form (DLG 57) may be included with a cover letter detailing the certification of levy deadline.

Budget Preparation/Justification/Presentation

Detailed preparation, adequate justification, and an effective presentation can benefit the assessor in budget negotiations with the county commissioners.

Management Team Tasks

• Review status of budget for the current and previous year.
   
• Discuss fiscal needs for subsequent year. Review items such as staff education requirements, appraiser testing and licensing fees, vendor prices, supplies, and forms. (The Division will provide budgeting assistance upon request.)
   
• Prepare proposed budget, narrative, and presentation for BOCC.

Senior Citizen and Veteran With A Disability Exemption Applications Filed Late

If the application for the senior citizen exemption is not filed by July 15, the assessor must accept late applications through August 15; however, applicants will not have appeal rights for applications filed after July 15, § 39-3-206(2)(a.5), C.R.S.

The county assessor is authorized to accept late applications for the surviving spouse of a prequalifying veteran with a disability filed on or before August 1, if the applicant shows good cause for missing the July 1 deadline (not statutory).

The county assessor is authorized by § 39-3-206(2)(a.7), C.R.S., to accept late applications for the veteran with a disability exemption filed on or before August 1, if the applicant shows good cause for missing the July 1 deadline. (Refer to Late Applications in Chapter 3, Specific Assessment Procedures.)

MANAGEMENT TEAM TASKS

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Train staff on reviewing late applications.

August - Nondate-Specific Statutory Duties

Administration Team Tasks

• Review late applications to verify owner qualifications. Flag accounts that qualify for the exemption. Notify owners of properties that are not qualified for the exemption.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review building permits to ascertain number and location of new structures, remodels, and additions constructed since January 1 that must be inspected. Review ratio studies to identify areas where values may require adjustment. Review property inspection plan to establish review areas. Using this data, plan real property appraisers’ assignments, routes, and deadlines to complete work by April 1.
• Prepare appraisal plan for following year.
• Remit to the treasurer all fees collected to date, including an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• Verify requirements for submitting electronic data to the Administrator pertaining to the senior citizen, veteran with a disability, and surviving spouse of a prequalifying veteran with a disability exemptions. Review requirements with computer vendor or information technology staff.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• Input address changes for state assessed companies.
• Establish method to identify and track changes in value that occur after certification and will affect recertification.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

September – Statutory Deadlines and Duties

CBOE Begins Hearing Appeals

For counties that elected to use the alternate protest and appeal procedure, the CBOE begins hearing appeals on September 1 and continues through November 1.

Management Team Tasks

• Monitor completion of tasks detailed for the Appraisal Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review list of CBOE appeals and assign appropriate personnel to prepare and present cases on real and personal property.

Appraisal Team Tasks

• Prepare and present cases to CBOE as assigned

CBOE Report on Taxable Property

For counties that use the alternate protest and appeal procedure, by September 15, the assessor must compile and report to the CBOE the assessed value of all taxable property in the county, and submit a list of all real and personal property protests, the status/outcome of each protest, a list of movable equipment apportionments, and a list of owners who failed to return a Personal Property Declaration.

Management Team Tasks

• On the second Monday of September, report to the CBOE the total valuation of real property in the county and the status/outcome of each real property protest.

Senior Citizen and Veteran With A Disability Exemptions Submitted to Administrator

The report submitted to the Administrator no later than September 10 and must include a statement of the total amount of actual value exempted from taxation, and an itemized list showing the following information for each account that qualified for exemption: the schedule number, the legal description, the name and social security number of the applicant and each person who occupies the property, the taxable and tax exempt value, and other pertinent information. (Refer to Chapter 3, Specific Assessment Procedures.)

Auditors Submits Final Report

The final report of the annual audit must be submitted to the general assembly and the state board by September 15.

Management Team Tasks

• Review final report to verify that any agreed upon changes were incorporated in the report.
• Write media release detailing the results of the annual audit.
• Prepare presentation to state board, if necessary.

Management Team Tasks

• Coordinate data submission with computer vendor or information technology staff.
• Verify that the required data is submitted by deadline.

September – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
   
• Estimate the number of Personal Property Declaration Schedules (DS 056, DS 058, DS 060, DS 155, DS 618, DS 628, DS 648, DS 654, DS 656, and DS 658) required for next year and order from the appropriate vendor. To obtain additional information from the Department of Revenue see §§ 39-21-113(7) and (10), C.R.S. (Refer to ARL Volume 5, PERSONAL PROPERTY VALUATION MANUAL, Chapter 2, Discovery, Listing, and Classification.)
   
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
   
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Review supplementary sales confirmation letters, continue market adjustment and depreciation analysis, and code transactions accordingly.
• Begin preliminary sales analysis for the intervening year.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Personal Property

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

October – Statutory Deadlines and Duties

Budget Completed and Submitted to BOCC

Management Team Tasks

• Review final budget.

October – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Certify to the county treasurer the TD-1000 penalties for the third quarter of the current year. Certifying this information provides the treasurer with unpaid penalty information in the event the property sells.
• Remit to the treasurer all fees collected to date, including an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

November – Statutory Deadlines and Duties

CBOE Concludes Hearings

For counties that elected to use the alternate protest and appeal procedure, the CBOE must conclude hearings for real and personal property appeals and render decisions no later than November 1. Written decisions of the CBOE must be mailed to property owners or agents within five business days from the date decisions are rendered.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review CBOE orders.

Administration Team Tasks

• Run abstract reports by subclass before CBOE changes are entered.

Appraisal Team Tasks

• Change the assessment roll and appraisal records to reflect adjustments ordered by the CBOE.

Abstract of Assessment Sent to Administrator

For counties that elected to use the alternate protest and appeal procedure, the assessor must complete and file the Abstract of Assessment to the Administrator no later than November 21. Abstracts that are improperly completed or out of balance may be returned to the county assessor.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review Abstract of Assessment for accuracy, verify changes ordered by the CBOE, new construction and demolition data. The assessor and BOCC chair must sign two copies.

Administration Team Tasks

• Run abstract reports by subclass and school district, both before CBOE adjustments are entered and after CBOE adjustments are entered.
• Input valuations and unit counts, CBOE changes, and new construction/demolition values into the Division’s online Abstract of Assessment system.
• Print three copies of the abstract and submit to the Management Team for review and signature by the assessor and the chair of the BOCC.
• Retain one paper copy and an electronic copy of the abstract.
• Send two paper copies and an electronic copy of the abstract to the Division.

November – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Remit to the treasurer all fees collected to date, and an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

December – Statutory Deadlines and Duties

Notice of Denied Senior Citizen or Veteran With A Disability Exemption

The Administrator examines the reports submitted by each assessor, and identifies applicants who filed more than one exemption as married couples, an exemption on property that the applicant does not own and occupy as primary residence, or applicant is otherwise ineligible to claim an exemption. The Administrator provides written notice to the assessor to remove ineligible or illegal exemptions.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.

Administrative Team Tasks

• Review report from Administrator and flag property owners who filed illegal applications. These applicants will not receive the senior citizen or veteran with a disability exemption on any of the properties listed in the report.
• Retain Administrator’s report.

Recertification to Taxing Entities

The assessor must recertify to each taxing entity any changes in value made after the August 25 certification of value. The taxing entities must adjust their mill levies accordingly.

The time frame between the recertification deadline and the deadline for certifying mill levies is short. In an effort to assist the taxing entities, the Division recommends that assessors recertify values by December 1.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Review balancing procedures.
• Review recertification forms and letters for accuracy before mailing.
• Discuss with staff the importance of NOT changing any values until after the tax warrant is compiled, balanced, and delivered to the treasurer.

Administration Team Tasks

• Run certification reports by taxing entity.
• Determine changes in value for each taxing entity that occurred between the August 25 certification date and the current date.
• Verify that the total value of the county EQUALS the total value of the school district, unless the county or a school district exempts all or a portion of personal property.
  Verify that the abstract and certification values balance with the recertification values. Differences between the certification of values and the recertification of values should be documented. (Refer to Chapter 7, Abstract, Certification, and Tax Warrant.)
• Write recertification letters to entities indicating the date by which the entities must certify levies to BOCC. Mail letters to individual entities.
• Complete certification of values forms (DLG 57) for each entity. Mail certification of values forms to cities, counties, and special districts to the Division of Local Government by December 10 (preferably by December 1). Mail certification of values forms for school districts to the Department of Education by December 10 (preferably by December 1).
• Compile list of real property and business personal property accounts that were destroyed during the year. Report to the county treasurer the assessed values of properties eligible for state reimbursement per § 39-1-123, C.R.S.

BOCC Certifies Levies and Levies Taxes

No later than December 22, the county commissioners must levy against the assessed value of all taxable property located in the county on the assessment date.

Management Team Tasks

• Monitor completion of tasks detailed for the Administration Team, review the status of each task, and reassign or redefine priorities as necessary.
• Check the certified levies for accuracy.

Administration Team Tasks

• Verify that any new tax areas have been entered into the computer system.
• Enter levies into computer system.

BOCC Provides Tax Rate Information

No later than December 22, the county commissioners must provide the tax rate information provided by the local governments in their county to the Administrator and the Division of Local Government.

December – Nondate-Specific Statutory Duties

Management Team Tasks

• Monitor completion of tasks detailed for the Administration and Appraisal Teams, review the status of each task, and reassign or redefine priorities as necessary.
• Review most recent publication of Chapter 9, Form Standards, to confirm required components for Notices of Valuation, Protest Forms, Notices of Determination, Special Notices of Valuation and Protest Forms. Determine if forms will be produced in-house or purchased from a printer vendor for the coming year.
• Coordinate scheduling for personal property declaration processing.
• Review control totals report prior to generating the tax warrant.
• Discuss options for mailing the senior citizen and veteran with a disability exemptions notice to residential real property owners and coordinate with county treasurer. If language regarding the veteran with a disability is not included in the tax bill, assessor must notify veterans in their county no later than May 1.
• Remit to the treasurer all fees collected to date, including an itemized statement of the fees. Reconcile the statement with the assessor’s collection register.
• Compile and review approved contracts with outside service providers for the following budget year; make a calendar of specific performance dates; plan and execute a work flow that adheres to these dates.
• Review and reconcile current year’s budget, identify remaining account balances due, ensure that funds committed in the previous fiscal year are expended by January 31.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Administration Team Tasks

• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Appraisal Team Tasks

Real Property

• Mail income data questionnaires.
• See Nondate-Specific Statutory Duties at the beginning of this chapter.

Addendum 2-A, Assessment Calendar

January

February 

March

April

May

June

July

August

September

October

November

December

Variable

Introduction

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

Taxable Property

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

Colorado Valuation Procedures

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

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

Property taxes are not calculated on the “full actual value” as determined by the assessor. Instead, an assessment percentage is applied according to the classification of the property, §§ 39-1-104(1) and 39-1-104.2, C.R.S. For property tax year 2024, residential property is assessed at 6.7% after an adjustment of $55,000 is applied to the actual value. If the adjustment reduces the total assessed value below $1,000, then the adjustment is reduced so that the assessed value does not fall below $1,000. For property tax year 2024, commercial improved property is assessed at 27.9% after an adjustment of $30,000 is applied to the actual value. If the adjustment reduces the total assessed valued below $1,000, then the adjustment is reduced so that the assessed value does not fall below $1,000. For property tax year 2024, agricultural property and renewable energy production property are assessed at 26.4%. Most other properties are assessed at 27.9%. The exceptions are producing mines and producing oil and gas leaseholds, articles 6 and 7 of title 39, C.R.S. 

Specific Administrative Processes

Abatements

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

Initiating an Abatement

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

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

Data Control Measures

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

January 1: Establishes value base on the assessment date.

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

May 1: Establishes value base before protest period.

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

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

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

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

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

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

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

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

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

The following items are examples of situations to verify:

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

Great Outdoors Colorado Trust Fund

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

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

Growth Valuation for Assessment

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

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

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

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

Manufactured Homes

Terminology

Manufactured Home

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

Definitions.

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

§ 39-1-102, C.R.S.

Mobile Home

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

Definitions.

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

§ 39-1-102, C.R.S.

Trailer House

This is another term for mobile home.

Modular Home

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

Definitions.

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

§ 39-1-102, C.R.S.

Factory Built Home

This is another term for modular home.

Panelized Home

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

Camper Trailer

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

Park Model

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

Sale of New or Used

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

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

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

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

Manufactured Home Transfer Declaration

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

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

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

Permanently Affixed to the Ground

Certificate of Permanent Location for a Manufactured Home

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

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

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

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

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

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

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

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

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

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

Manufactured Home Movement

Existing Homes

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

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

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

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

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

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

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

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

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

Existing Homes on Permanent Foundation

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

New Homes

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

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

Permits for excess size and weight and for manufactured homes.

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

§ 42-4-510, C.R.S.

Required Permits

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

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

Penalties

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

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

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

Proof of Manufactured Home Identification

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

Manufactured Home Destroyed

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

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

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

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

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

Held as Inventory

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

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

Soldiers’ and Sailors’ Civil Relief Act – Exemption

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

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

Non-residential Use

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

Camper Trailers, Multipurpose Trailers, and Trailer Coaches

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

Exemption

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

Mapping Processes

Processing Plats

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

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

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

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

2. Review the plat for the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Resubdivision Plats – Processing

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

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

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

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

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

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

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

Splits and Mergers

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

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

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

Subdivision, Townhome, Condominium, and Pud Plats

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

Boundary Changes for Taxing Entity

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

Formation of a New Taxing Entity

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

Map Maintenance

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

Movable Equipment

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

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

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

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

Refer to ARL Volume 5, Personal Property Valuation Manual, Chapter 7, Special Issues for apportionment procedures.

Ports of Entry – Form 301

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

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

Omitted Property

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

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

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

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

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

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

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

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

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

Omitted Revenue

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

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

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

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

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

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

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

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

Out-of-State Ownership List

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

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

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

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

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

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

Personal Property Issues

After the Assessment Date

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

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

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

Incentive Payments

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

Personal Property Moved in or Out of State After January 1

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

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

Exemption of Consumable Personal Property

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

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

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

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

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

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

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

Processing Declarations

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

Physical Inspection of Real Property – Guidelines

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

Prior to Field Inspection

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

Field Inspection

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

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

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

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

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

For additional information on physical inspections, refer to:

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

Possessory Interests

Possessory Interest Definition

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

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

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

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

Tax Area Assignment

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

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

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

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

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

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

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

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

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

Minimum Values

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

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

Property Description

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

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

Examples:

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

Parcel Numbering

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

Classification and the Abstract of Assessment

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

Collection of Taxes

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

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

Predatory Animal Control

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

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

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

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

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

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

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

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

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

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

Procedures

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

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

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

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

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

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

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

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

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

Annual Notice

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

Eligibility for the Senior Citizen Exemption

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

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

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

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

Eligibility for the Veteran with a Disability Exemption

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

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

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

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

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

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

Exceptions to Ownership and Occupancy Requirements

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

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

Limitations

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

Required Forms

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

Forms Index

Making Application

Senior Citizen Exemption

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

Veteran with a Disability Exemption

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

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

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

Approval or Denial of Application

Senior Citizen Exemption

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

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

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

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

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

Veteran with a Disability Exemption

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

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

Only One Exemption Allowed

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

Additional Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Revocations

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

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

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

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

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

Assessor and Treasurer Reports

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

Assessor’s First Report to Division of Property Taxation

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

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

Assessor’s Second Report to Division of Property Taxation

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

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

County Treasurer’s Report to Administrator

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

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

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

File Format for Reports

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

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

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

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

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

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

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

Late Applications

Late Applications for the Senior Citizen Exemption

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

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

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

Late Applications for the Veteran with a Disability Exemption

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

Changes Made After September 10

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

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

Changes Resulting from an Abatement Petition

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

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

Exemptions on Properties With Prorated Values

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

Example – Residence destroyed by fire

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

Actual value prior to destruction:

Prorated actual value of improvement:

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

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

Total actual value of property after proration:

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

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

Qualification Scenarios

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

Residence on Agricultural Land

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

Adjoining Parcel Receiving Residential Rate

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

Destroyed Residence

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

Destroyed Residence by Natural Disaster

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

Spouse Who is Owner of Record Dies

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

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

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

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

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

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

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

Eligibility Requirements For The Senior Citizen Primary Residence Property Tax Reduction

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

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

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

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

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

Program Limitations and Deadlines

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

Annual Notice Page

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

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

Application Process and Review

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

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

Reports to the Administrator

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

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

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

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

REVOCATIONS

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

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

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

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

UNIQUE SITUATIONS

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

Adjoining Parcel Receiving Residential Rate

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

Changes Resulting from an Abatement Petition

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

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

Exemption on Properties with Prorated Values

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

Residence on Agricultural Land

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

Severed Minerals

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

Mineral Interest Severed Prior Year

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

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

Mineral Interest Rejoined With Surface Prior Year

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

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

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

Mineral Interest Under Production

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

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

Production Ends: Severed Mineral Interests Placed Back on Tax Roll

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

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

Special Districts

Boundary Changes for Special Districts and Municipalities

Definitions

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

Procedures

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

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

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

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

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

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

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

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

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

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

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

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

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

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

   It may be necessary to create new tax areas when:

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

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

Elections List of Property Owners

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

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

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

Formation of a New Special District

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

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

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

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

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

Authority to Tax

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

Maintaining Current Records

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

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

Processing a New Special District

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

Inactive Special Districts

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

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

Special Notices of Valuation

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

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

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

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

Omission of Property from the Tax Warrant

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

New Construction Added to Assessment Roll after May 1

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

Manufactured Home Moved into the County

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

Manufactured Home not Exempt as Inventory

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

Forfeiture of the Exempt Status of Property

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

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

Revocation of Exempt Status by the Property Tax Administrator

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

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

Loss of Exempt Status Because of Transfer of Property

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

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

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

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

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

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

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

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

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

Under-Reported Oil and Gas Volume

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

Procedures for Issuing a Special NOV

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

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

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

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

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

State Lands Sold

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

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

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

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

The Assessor’s Role in a Disaster

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

Obtaining a Major Disaster Declaration typically involves the following steps:

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

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

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

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

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

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

Title Conveyance 

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

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

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

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

Elements of a Deed

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

Must be Written

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

Grantor/Grantee must be Designated

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

Grantor: Person(s) deeding property

Grantee: Person(s) receiving property

Recital of Consideration

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

Words of Conveyance

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

Property Description

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

Delivery of the Deed

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

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

Signature

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

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

Date of the Deed

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

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

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

Exceptions or Restrictions

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

Warranties and Covenants

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

Acknowledgment of Grantor’s Signature

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

Recording

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

Ownership Interests

Concurrent Interests

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

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

Joint Tenancy

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

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

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

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

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

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

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

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

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

Tenancy in Common

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

Decedent’s Estates

Property held in Joint Tenancy

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

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

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

Property held in a Life Estate

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

Property held as Tenants in Common

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

Other Title Conveyance Topics

Entity Name Changes

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

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

Mergers and Conversions

Merger

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

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

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

Conversion

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

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

Procedures

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

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

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

Reservations

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

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

Quiet Title Decree

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

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

Name Variances

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

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

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

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

Title Conveyance Procedures

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

6. Sort the documents into the following categories:

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

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

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

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

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

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

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

    Priority of deed dates:

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

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

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

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

Tracking Flags

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

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

Addendum 3-B, Elements of a Deed

Addendum 3-B, Elements of a Deed

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

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

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

 Following are additional elements of a deed

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

   1. Priority of dates:

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

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

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

Assessment Rate, Mill Levies, And Tax Bill

The calculation of property tax consists of three segments: the actual value, the assessment rate, and the mill levy. The assessor establishes the actual value of the property and the classification. The Colorado Constitution states that the general assembly determines the assessment rate, and the taxing entities control the mill levies. Unfortunately, most taxpayers only understand the final result - the tax bill. It is important for assessment personnel to understand how the segments fit together in order to better explain to taxpayers the effects of changing mill levies and values.

Assessment Rate

The residential assessment rate is set by the general assembly. For a further explanation of classification, assessment rates, and level of value, refer to Chapter 6, Property Classification Guidelines and Assessment Percentages.

The classification of property influences the manner in which a property is assessed:

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

**For Residential and Commercial Improved properties, the assessment rate is applied after an actual value adjustment. For 2024, the actual value adjustment is $55,000 for Residential parcels and $30,000 for Commercial Improved parcels. The value adjustments must not result in the total assessed value being reduced below $1,000.

Computing Assessed Value

Actual value multiplied by the appropriate assessment rate equals the assessed value of the property. For the assessment roll, the assessed value can be rounded.

Note: For the sake of simplicity, all actual and assessed values in this chapter are rounded to the nearest whole dollar.

Rounding: Rounding rules require that the number be carried one digit beyond the number to which you are rounding, discarding all numbers after that, and rounding “up” if that digit is 5 or more, and “down” if that digit is less than 5.

Example:

497.49 rounded to the nearest “tenths” is 497.5. The same number rounded to the nearest “whole number” is 497. That same number rounded to the nearest “tens” is 500.

To round to the nearest “tenths,” consider the 9 after the 0.4. This is greater than 5, causing the 0.4 to be rounded “up” to 0.5 causing the new number to be 497.5.

To round to the nearest “whole number,” discard the 9 and only consider the 0.4, 4 is less than 5, thereby the 0.49 is dropped and the number is expressed as 497.

To round to the nearest “tens” discard the 0.49 and only consider the 7, which is greater than 5, causing the 9 to be rounded “up” to 10, which carries over to 500.

1. The assessed value of a commercial property is $138,003.75.
   $138,003.75 rounded to the nearest $1 is $138,004
2. The assessed value of a residential property is $8,406.45.
   $8,406.45 rounded to the nearest $1 is $8,406
3. The assessed value of production from a producing oil well is $1,330,274.75.
   $1,330,274.75 rounded to the nearest $1 is $1,330,275

The assessment rate can be determined by dividing the assessed value by the actual value, assuming there is not an actual value adjustment.

Assessed value ÷ Actual value = Assessment rate

The actual value can be determined by dividing the assessed value by the assessment rate, assuming there is not an actual value adjustment.

Assessed value ÷ Assessment rate = Actual value

Mills

The English word “mill” comes from the Latin “mille,” which means one thousand. In the U.S., “mill” is a monetary term which means one one-thousandth (1/1000) of a dollar. The mill levy is the tax rate expressed in mills (thousandths of a dollar) per dollar of assessed value.

1 dime = $0.10 or 1/10 of $1.00
1 penny = $0.01 or 1/100 of $1.00
1 mill = $0.001 or 1/1000 of $1.00

The term “tax rate” is defined as the decimal equivalent of the mill levy. To convert mills to a decimal equivalent, move the decimal point three (3) places to the left. This is the equivalent of dividing the number of mills by 1,000.

75.00 mills ($75.00 per $1,000 Assessed value) = 0.075 ($0.075 per $1 Assessed value)
12.30 mills ($12.30 per $1,000 Assessed value) = 0.0123 ($0.0123 per $1 Assessed value)

Tax Rate

Tax rates are to assessed values what sales tax rates are to the cost of goods purchased. That is, the property’s assessed value is multiplied by the tax rate to determine property taxes due.

Assessed value × Tax rate = Property tax
$19,000 Assessed value × 0.047364 (47.364 mills) Tax rate = $899.92 Tax

Computing Tax Rates

Tax rates are established by the individual taxing entities and are based on the amount of money needed to provide services the following year. The budget is determined by the officials of the taxing entity. Anticipated revenues from non-property tax sources are subtracted from the total budget. The remainder is the amount required from property taxes. This amount is divided by the total assessed value in the jurisdiction to obtain the property tax rate.

Section 20, art. X, COLO. CONST., and Colorado Revised Statutes place limitations on mill levy and spending and revenue increases for taxing entities. For further explanation, refer to Chapter 7, Abstract, Certification, and Tax Warrant.

The total tax rate applied to an individual property is determined by adding together the separate rates of all taxing entities having jurisdiction in the specific area where the property is located.

Example:

Mr. Smith’s store is located within the boundaries of:

The county
An incorporated city
A school district
A water and sanitation district

Each taxing entity has set its budget and determined the tax rate necessary to obtain the required revenue from property taxation. Determine the total tax rate applicable to Mr. Smith’s store by adding together the rates of the four taxing districts:

The total tax rate of 0.095965 can be expressed three different ways:

95.965 mills or
$95.965 per $1,000 of assessed value or
9.5965% of the assessed value

To convert mills to a percentage, move the decimal point one place to the left. Remember, the tax rate is the decimal equivalent of the mill levy.

Computing Individual Tax Bills

Multiply the total assessed valuation of the property by the total tax rate for the tax area:

Example:

Mr. Smith’s store building and land are appraised at $100,000 actual value. The property’s assessed value, at 27.9 % of actual value after a $30,000 adjustment, is $19,530. The tax rates for the area are: 0.059467 for the school district, 0.021925 for the county, 0.011654 for the city, and 0.002919 for the water and sanitation district; for a total tax rate of 0.095965. What is Mr. Smith’s tax?

Once the total tax rate is determined, it is a simple matter to calculate the individual tax bill.

$ 100,000 Actual value - $30,000 Adjustment
× 0.279 Assessment rate
= $ 19,530 Assessed value
× 0.095965 Tax rate
= $1,874.20 Tax

Whether the tax rate is expressed in mills, $ per $1,000 assessed value, or a percentage of assessed value, the taxes calculated will always be the same.

Using a Mill Levy and Assessed Value

95.965 Mill levy:

Convert the mill levy to a decimal equivalent tax rate by moving the decimal point three places to the left and multiply by the assessed value.

95.965 Mill levy = 0.095965 Tax rate
0.095965 Tax rate × $19,530 Assessed value = $1,874.20 Tax

Using $ Per $1,000 in Assessed Value

$95.965 per $1,000 of assessed valuation:

Divide the assessed value by 1,000 and multiply by tax $ per $1,000 assessed value.

$19,530 Assessed value ÷ $1,000 = 19.53
19.53 × $95.965 (per $1,000 Assessed value) = $1,874.20 Tax

Using Percentage of Assessed Value

9.5965% of assessed value:

Convert the percent (%) of assessed value to a decimal equivalent by moving the decimal point two places to the left and then multiplying by the assessed value.

9.5965% = 0.095965 Tax rate
0.095965 Tax rate × $19,530 Assessed value = $1,874.20 Tax

Example:

Using the following individual tax rates, calculate the taxes for a residence with an actual value of $100,000.

County ....................................21.925..........= 0.021925
City .........................................11.654..........= 0.011654
School district ........................59.467..........= 0.059467
Water and sanitation district .. 2.919..........= 0.002919
Total tax rate 95.965 Mills = 0.095965

Residential value:

($100,000 Actual value - $55,000 Adjustment) × .067 Assessment rate = $3,015 Assessed value
$3,015 Assessed value × 0.095965 Tax rate = $289.33 Tax

Computing Documentary Fees

A documentary fee is a fee imposed by the clerk and recorder for any deed or instrument presented for recordation in which the consideration for the real property is over $500. Exclusions from the documentary fee exist and can be found in § 39-13-104, C.R.S. The documentary fee is computed at the rate of one cent for each one hundred dollars of consideration ($0.01 per $100), § 39-13-102, C.R.S.

Example:

A warranty deed has been recorded with a consideration of $350,000, the county clerk and recorder will need to collect a documentary fee based on the consideration. Calculate the documentary fee based on the consideration provided.

Warranty deed consideration: = $350,000 ÷ $ 100 = $ 3,500 × $ 0.01 = Documentary fee $ 35.00

A warranty deed has been recorded with a documentary fee of $35.00, what is the consideration listed on the deed?

Documentary fee = $ 35.00 ÷ $ 0.01 = $ 3,500 × $ 100 Warranty deed consideration: $350,000

Refer to ARL Volume 3, Real Property Valuation Manual, Chapter 3, Sales Confirmation and Stratification, for additional information regarding documentary fees.

Computing Real Property Transfer Declaration Penalty

Whenever a conveyance document is presented for recordation, a copy of a Real Property Transfer Declaration (TD-1000) should be included. If the declaration is not returned within 30 days, the assessor may impose a penalty equal to $25 or 0.025% (0.00025) of the property’s sales price, whichever is greater, §§ 39-14-102 and 39-14-103, C.R.S.

Example:
A warranty deed has been recorded with a consideration of $165,000, the county clerk and recorder has collected a documentary fee of $16.50; however, a transfer declaration was not submitted. Determine the penalty that should be collected by the county assessor if no declaration is submitted by the grantee.

Documentary fee $16.50
Property sales price $165,000

$165,000 × 0.00025 = $41.25, penalty

Fractional Interests, Decimals, and Percentages

Definitions

Fraction: One or more parts of a whole. (1/4 is a part of the whole 4/4)
Numerator: The top number of a fraction.
Denominator: The bottom number of a fraction.
Common denominator: A number in which all the denominators of a set of fractions may be divided into evenly.
Decimal equivalents: A fraction converted to a decimal. 1/4 = 0.25, 4/4 = 1.00

Converting to Lowest Common Denominator

To properly allocate fractional interests, each fraction should be expressed using the lowest common denominator. The first step in determining the lowest common denominator is to reduce fractions to their lowest fractional form.

60/360 reduces evenly to 1/6. (Divide the denominator by the numerator. If the result is a whole number, that number is the new denominator.)

Then, determine the lowest common denominator. The lowest common denominator can be defined as the lowest number that can be divided evenly by all denominators without leaving a remainder. Multiply the numerator by the same number needed to convert the denominator to the lowest common denominator.

Example:

The following interests total the whole interest in a property. Convert the fractions to lowest common denominators. Determine a number that is evenly divisible by 2, 5, and 10. Answer: 10 (2 × 5 = 10). Ten becomes the lowest common denominator because each fraction will convert to “tenths.”

Convert all fractions to the same common denominator or “tenths.” Multiply the numerator of each fraction by the number used to convert its denominator to the lowest common denominator.

1/10 does not need to be converted because it is already in “tenths.”
2/5 × 2/2 = 4/10
1/2 × 5/5 = 5/10

Summary of Conversions:

In this example, the ownership interests, when added together, should equal “one.” Add the new fractions to be sure they total “the whole.”

1/10 + 4/10 + 5/10 = 10/10

This method is typically used when calculating undivided interests. Property is often transferred to several individuals, each having a different undivided interest.

Example: Determine the fractional amount of mineral interest severed from the surface ownership and the amount of mineral interest remaining with the surface ownership.

There is an existing 3/8 severed mineral interest reservation in the S1/2 S32 T13 R44. Your office receives two deeds on the same legal description. One contains a mineral reservation of 60/360 and the second deed contains a mineral reservation of 50/120.

23/24 represents the total severed mineral interest (24/24 - 23/24 = 1/24)
1/24 is the mineral interest remaining with the surface estate.

Fraction of a Fraction

It is sometimes necessary to determine the acreage or value amount for a partial interest of a fractional interest.

Example:

1/8 of 3/4 interest
To calculate, multiply the fractions: 1/8 × 3/4 = 3/32

Example:

A personal representative’s deed stipulates that Mrs. White’s children are to receive her 1/4 interest in 148 mineral acres. Her son receives a 1/3 undivided interest, one daughter receives a 1/4 undivided interest, and a second daughter receives a 5/12 undivided interest in the 1/4 interest.

Using fractions, determine the number of mineral acres assigned to each undivided interest and the actual value for each interest. The actual value for severed minerals is $7 per mineral acre.

Below are three options for calculating the mineral acreage for each undivided interest.

Option 1:

First, determine a fractional representation of each person’s inherited interest in Mrs. White’s interest.

Second, determine the acreage amount for each interest. Mrs. White owned 1/4 interest in 148 mineral acres.

1/12 × 148 Mineral acres = 148 ÷ 12 × 1 = 12.33 Mineral acres
1/16 × 148 Mineral acres = 148 ÷ 16 × 1 = 9.25 Mineral acres
5/48 × 148 Mineral acres = 148 ÷ 48 × 5 = 15.42 Mineral acres
37.00 Mineral acres

Option 2:

Using the mineral acreage owned by Mrs. White, determine the acreage amount for each person’s interest.

1/4 of 148 Mineral acres = 37 Mineral acres (full 1/4 interest)

1/3 × 37/1 = 12.33 Mineral acres
1/4 × 37/1 = 9.25 Mineral acres
5/12 × 37/1 = 15.42 Mineral acres
37.00 Mineral acres

Option 3: You may combine the two steps above as follows:

Calculate the actual value of each interest.

Changing a Fraction to its Decimal Equivalent

Divide the numerator (top number) by the denominator (bottom number).
Example:

Which of these fractions is the greatest? 1/3, 1/4, 5/12, or 9/32

1 ÷ 3 = 0.33333
1 ÷ 4 = 0.25000
5 ÷ 12 = 0.41667
9 ÷ 32 = 0.28125

5/12 is the greatest amount.

Example:

By personal representative’s deed, Mrs. Brown’s severed mineral interest in 640 acres is conveyed to her four children. Her son received a 9/15 undivided interest, and each of her 3 daughters received a 2/15 undivided interest. The current actual value of the severed mineral interest is $4,480. Determine the actual value attributable to each undivided interest. The actual value for severed minerals is $7 per mineral acre.

Decimal equivalent of son’s 9/15 interest: 9 ÷ 15 = 0.60
Decimal equivalent of each daughter’s 2/15 interest: 2 ÷ 15 = 0.1333

Value calculation:

Son:
640 Mineral acres × 0.60 Son’s interest = 384 Mineral acres
384 Mineral acres × $7 Per acre = $2,688 Son’s actual value

Daughters:
640 Mineral acres × 0.1333 Daughter’s interest = 85.312 Mineral acres
85.312 Mineral acres × $7 Per acre = $597 Daughter’s actual value

Son $2,688 Actual value
Daughter 1 597 Actual value
Daughter 2 597 Actual value
Daughter 3 597 Actual value
$4,479 Total Actual value

Due to rounding, the sum of the individual interests is $1 less than the total actual value. Therefore, the actual value of the son’s interest is increased by $1 to ensure that the total actual value remains the same.

Son $2,689 Actual value
Daughter 1 597 Actual value
Daughter 2 597 Actual value
Daughter 3 597 Actual value
$4,480 Total actual value

Note: The value of the largest undivided interest holder receives the rounding adjustment.

Example:

Paul Jones purchased a severed mineral interest. The mineral deed described the interest as a 768/4096 severed mineral interest in a certain half section of land containing 320 acres. The actual value for severed minerals is $7 per acre. Determine the actual value of Mr. Jones’ mineral interest.

The decimal equivalent of Jones’ 768/4096 mineral interest is:

768 ÷ 4096 = 0.1875

The actual value of Mr. Jones’ severed mineral interest is:

320 Acres × 0.1875 Jones’s interest = 60 Mineral acres
60 Mineral acres × $7 Per acre = $420 Actual value

Converting Decimal Equivalents to Percentages

To convert a decimal to a percentage, move the decimal point two places to the right and add the “%” sign.

Example:
0.125 = 12.5%
0.0197 = 1.97%

Converting Percentages to Decimal Equivalents

“Percent” means “per one hundred.” The term 15% means 15 parts per hundred or 15/100. It can also be written as 0.15, which is the result of dividing 15 by 100.

To convert a percentage to its decimal equivalent, drop the percent symbol (%) or the word “percent,” and move the decimal point 2 places to the left.

Example:
12.5% = 0.125
1.97% = 0.0197

Interest in Joint Tenancy

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

Example:

Mary, Bill, and Jack own a parcel in joint tenancy, with Mary owning 1/2 interest, Bill owning 1/4 interest and Jack owning 1/4 interest. Jack dies; therefore, his 1/4 interest must be divided between Mary and Bill proportional to their respective interests at the time the joint tenancy was created.

Below are three options for calculating each person’s interest.

Option 1:

The three individuals own 4/4 total interest; Mary has 2/4 interest or 2 parts and Bill and Jack each have 1/4 interest or 1 part each. Mary and Bill retain their interests, which equals three parts; therefore, the 1/4 interest owned by Jack must be divided into 3 parts.

1/4 = 1/4 × 3/3 = 3/12. Each part equals 1/12 with Mary receiving 2 parts or 2/12 and Bill receiving 1 part or 1/12.

Mary: 6/12 (1/2) + 2/12 = 8/12 or 2/3
Bill: 3/12 (1/4) + 1/12 = 4/12 or 1/3
3/3 or 1

Mary now owns 2/3 interest and Bill owns 1/3 interest.

Option 2:

To calculate the remaining interests, divide the other interests by one minus the deceased interest or (1-1/4) as follows:

1 - 1/4 = 3/4 (to divide by a fraction, invert it and multiply)

Bill: 1/4 divided by 3/4 = 1/4 × 4/3 = 4/12 = 1/3
Mary: 1/2 divided by 3/4 = 1/2 × 4/3 = 4/6 = 2/3
3/3 or 1

Option 3:

Convert the fractional interests to a percentage.

Mary owns 50% interest, Bill owns 25% interest and Jack owns 25% interest. If Jack dies, his percent of interest is subtracted from the full 100% (100% - 25% = 75%). To calculate the proportional share of the ownership interests, the original percent of the interest held serves as the numerator and 0.75 is used as the denominator.

0.50 ÷ 0.75 = 66.7% Mary
0.25 ÷ 0.75 = 33.3% Bill
100.0%

Computing Areas

Computing the area of a shape requires the use of mathematical formulas. Many formulas are quite complex; however, most of the work accomplished by the assessor’s office can be handled easily with plane shape geometry concepts. Plane shape geometry is the study of figures in two dimensions having only width and length. Some of the common geometric terms are defined below.

Definitions

Area: The measure of a surface, generally expressed in square units, such as, square feet, square miles, acres.

Circle: A closed curve such that any point on the curve is equidistant from a fixed point called the center.

Circumference: The distance around the outside of a circle.

Diameter: Two times the radius of a circle (2r). It can also be defined as, the length of a straight line from one side of a circle to the other side, passing through the center of the circle.

Parallelogram: A four-sided polygon with opposite sides equal and parallel.

Perimeter: The total distance around the figure, expressed in linear units, such as feet, miles, yards.

Pi: Typically shown as the Greek letter “π” it is the ratio of any circle’s circumference to its diameter. π = Circumference ÷ Diameter; π is a constant 3.1416.

Plane: A flat surface defined by any three points not in a straight line.

Polygon: A closed figure whose sides are straight lines. Common polygons include squares, rectangles, trapezoids, triangles, and parallelograms.

Radius: The distance from the center of a circle to any point on the circumference (r).

Rectangle: A four-sided polygon with opposite sides equal and parallel and four right angles.

Right angle: An angle equaling 90°.

Square: A four-sided polygon with equal sides and four right angles.

Trapezoid: A four-sided polygon having only two parallel sides.

Triangle: A three-sided polygon.

Formulas

The mathematical formulas required to calculate areas, perimeters, and circumference are listed below.

Area:

Square: Base × Height (or Base²)
Rectangle: Base × Height
Parallelogram: Base × Height
(The height is measured at a right angle (90º) to parallel sides.)
Trapezoid: (Parallel side 1 + Parallel side 2) divided by 2 × Height
(The height is measured at a right angle (90º) to parallel sides.)
Triangle: Base × Height ÷ 2
Circle: π r²

Perimeters: The sum of the sides.
Circumference: 2πr or πd where r is the radius and d is the diameter of the circle.

Example – Areas and perimeters of polygons.

Square

Formula

B × H = Area
5 Feet × 5 Feet = 25 Square feet
Perimeter = 5 + 5 + 5 + 5 = 20 Feet

Characteristics

1. Opposite sides are parallel.
2. All sides are equal.
3. All angles = 90° (right).

Rectangle

Formula

B × H = Area
7 Feet × 4 Feet =28 Square feet
Perimeter = 7 + 4 + 7 + 4 = 22 Feet

Characteristics

1. Opposite sides are parallel.
2. Opposite sides are equal.
3. All angles = 90° (right).

Parallelogram

Formula

B × H* = Area
6 Feet × 4 Feet = 24 Square feet
Perimeter = 5 + 6 + 5 + 6 = 22 Feet

Characteristics

1. Opposite sides are parallel.
2. Opposite sides are equal.
3. Angles may not be 90°.
4. *Height is measured at right angle (90°) to parallel sides

Trapezoid

To calculate the area of a trapezoid, you must first determine the parallel sides; these are the bases. The height is then measured as the perpendicular distance between the two parallel sides.

Formula

(B₁ + B₂) ÷ 2 × H* = Area
(6 Feet + 12 Feet) ÷ 2 = 9 Feet 
9 Feet × 4 Feet = 36 Square feet
Perimeter = 6 + 5 + 12 + 5 = 28 Feet

Characteristics

1. Two measured sides are parallel.
2. *Height is measured at right angle (90°) to parallel sides.

Formula

(B₁ + B₂) ÷ 2 × H* = Area
(5 Feet + 10 Feet)  2 = 7.5 Feet 
7.5 Feet × 12 Feet = 90 Square feet 
Perimeter = 5 + 13 + 10 + 12 = 40 Feet

Characteristics

1. Two measured sides are parallel.
2. *Height is measured at right angle (90°) to parallel sides.

Triangles

Right Triangle

Formula

Area = (B × H*) ÷ 2
(5 Feet × 12 Feet)  2 = 30 Square feet 

Characteristics

1. One angle equals 90°.
2. *Height is measure of the side that forms a right angle (90°) with the base.

If the length of one side of a right triangle is missing, you can determine its length by using the following equation:

A² + B² = C², where A and B are the lengths of the sides forming the 90° angle, and C = the hypotenuse (the longest side).

Using the example above, if A = 5 Feet and B = 12 Feet, then the formula A² + B² = C² becomes 5² + 12² = C² and C² = 25 + 144 = 169 Square feet. To determine C, take the square root of both side of the equation as follows:

Therefore, the perimeter of the above triangle will be 5 Feet + 12 Feet + 13 Feet = 30 Feet

Acute Triangle

Formula

Area = (B × H*) ÷ 2
(5 Feet × 12 Feet) ÷ 2 = 30 Square feet 

Characteristics

1. All angles less than 90° for a total of 180°.
2. *Height measured at a right angle (90°) from the base to the highest point of the triangle.

The perimeter can only be determined if you know where the height intersects the base.
This will give you two sides of the triangle so you are able to determine the third side.
See A2 + B2 = C2 formula above in right triangle example.

Obtuse Triangle – calculating the area when the base and height are known

Formula

(B × H*) ÷ 2 = Area
(7 Feet × 4 Feet)  2 = 14 Square feet 
 Perimeter = 5 + 7 + 10.77 = 22.77 Feet

Characteristics

1. One angle measures more than 90°.
2. *Height measured at a right angles angles (90°) from the base (extended outside of the triangle) to the highest  point of the triangle.

Obtuse Triangle – calculating the area when the three sides are known

The area of a triangle can be found, without knowing the height, by using the following formula.

Formula

S = (A + B + C) ÷ 2
S = (3 Ft + 8 Ft + 9 Ft) ÷ 2 = 10 Feet

Characteristics

1. One angle measures more than 90°.
2. Height is not known, but three sides are known; thus, the given equations are used to find the area.

Circles

Formula

πr² = Area 
π × (5 Feet)² = (π × 25) = 78.54 Square feet 
Circumference = 2πr = 31.42 Feet

Characteristics

1. π is the ratio of any circle's circumference to its diameter.
2. π = 3.1416
3. r-radius; d=diameter 2r=diameter

As indicated previously, “r” is the radius. To calculate the circumference, the formula is 2πr or, since 2 times the radius equals the diameter (d), the formula becomes πd. For the area, the formula is π times the square of the radius. Any number squared is
that number multiplied by itself. In the figure above, the radius is five feet, thus the radius squared is 5 times 5, or 25.

Find the Area and Perimeter of the Diagram Shown Below:

Formula

(πr²) + (B × H) = Area

Characteristics

1. Figure is composed of a rectangle and two half-circles

To calculate the area:

First, find the area of the two half-circles:

The area of one half-circle is: (πr²) ÷ 2

This is equal to (3.1416 × 3²) ÷ 2 = 14.137 Square feet.

Since the two half-circles are equal, the result can be multiplied by 2. Therefore, the area of the two half-circles is 28.274 square feet, which is also the area of one whole circle.

Second, find the area of the rectangle: 10 × 6, which equals 60 square feet.

Third, calculate the total area of the figure, by adding the two areas together:
28.27 Square feet + 60 Square feet = 88.27 Square feet.

To calculate the perimeter:

Perimeter = (2πr) + (2 × B)

First, find the perimeter of the half-circles. Since each half-circle is the same, we need only find the perimeter of the whole circle. This distance is 2πr or πd, which equals 6 × 3.1416, which equals 18.85 feet.

The remaining sides for calculation of the perimeter are 10 + 10, which equals 20 feet.

Add the two amounts together for the total perimeter:
18.85 Feet + 20 Feet = 38.85 Feet

Find the Area and Perimeter of the Diagram Shown Below:

To calculate the area:

First, find the area of the two triangles at the ends of the figure:

The information given indicates that the two triangles are identical; therefore, we need only find the area of one triangle and multiply the result by 2. The formula for a triangle is base multiplied by the height divided by 2. This is equal to (1 × 4) ÷ 2 = 2 square feet.

The area of the two triangles is 4 square feet.

Second, calculate the area of the rectangle: 6 × 4, which equals 24 square feet.

Third, calculate the total area of the figure, by adding the two areas together:
4 Square feet + 24 Square feet = 28 Square feet

The perimeter can be determined by using the right triangle formula, namely, A² + B² = C² where C = the hypotenuse (the longest side) of a right triangle and A and B are the sides.

The hypotenuse is the side we are interested in for the determination of the perimeter. To find the hypotenuse, take the square root of the sum of the squares of the sides.

To calculate the perimeter:

Perimeter = 2.24 + 2.24 + 6 + 2.24 + 2.24 + 6 = 20.96 Feet

Converting Units of Measure

Areas are expressed in square units of measure, such as square feet, square inches, or square miles. Sometimes it is necessary to convert one unit of measure to another unit of measure. For instance, to convert square feet to acres, divide the number of square feet by 43,560, which is the number of square feet in one acre.

Example: Convert 1,000,000 square feet to acres.

1,000,000 Square feet ÷ 43,560 = 22.96 Acres

Example: Convert 1,000,000 square feet to square yards.

A yard is 3 feet in length; therefore, one square yard equals 3 feet × 3 feet or 9 square feet.

1,000,000 Square feet ÷ 9 Square feet = 111,111.11 Square yards

Basic Assessment Statistics

The following is information on selected statistical measures, based on accumulated sales ratios. These measures can be valuable tools in analyzing such ratios. Additional detail and explanation can be found in ARL Volume 3, Real Property Valuation Manual, Chapter 8, Statistical Measurements.

Sales Ratio Studies

A sales ratio is the relationship of the assessor’s actual value to the selling price, usually expressed as a percentage.

Computation

The sales ratio is computed by dividing the assessor’s actual value of the sold property by its sales price.

Example:

Essential Aspects

Sales ratio studies are used to evaluate the fairness and uniformity of the distribution of the tax burden. The two essential aspects of a sales ratio study are assessment level and assessment uniformity. Assessment level is indicated by computing the central tendency of the ratios and is called the median sales ratio. Assessment uniformity is indicated by comparing the measures of central tendency of different types of property groups. The most common measure of assessment uniformity is the coefficient of dispersion (COD).

Measures of Central Tendency

A measure of central tendency is a single number or value that expresses the center or the middle of a set of data. The central tendency may be considered representative or typical of the entire data set. The three measures of central tendency used in assessment ratio studies are the mean, median, and weighted mean.

Median

The median is the value that divides the data in half, each half containing the same number of observations. There are as many values above the median as below it. In assessment ratio studies, the median is generally used in measuring the assessment level because the median is least affected by “outlier” data. Outliers are properties with very high or very low sales ratios.

To determine the median, a data array must be constructed. An array lists the data from lowest to highest or highest to lowest. The rank of the median can be determined by the formula:

N = Number of observations
(N + 1) ÷ 2

Example: Find the median ratio of the data set. Ratios are arrayed, not the actual values or sales prices.

(5 + 1) ÷ 2 = 3

The median is the middle value in the array from either the top or the bottom of the array.
If there is an even number of values, the median is the average of the two middle values.

Advantages:

• Easy to determine.
• Unaffected by extremely high or low values, so it is a stable measure of central tendency.
• The median always exists for any set of data.
• There can be only one median.
• The median takes all data into account.

Disadvantages:

• The data must first be arrayed.
• The median must be calculated if there is an even number of values in the data set.

Mean

The mean is the average of the data. The mean is computed by dividing the sum of the values in the data set by the number of observations.

Example: Find the mean ratio of the data set.

Sum of ratios ÷ Number of ratios = Mean ratio
4.8234 Sum of ratios ÷ 5 Number of ratios = 0.9647 Mean ratio

Advantages:

• Not difficult to compute.
• Mean can be computed for any set of data.
• The mean takes all the data into account.

Disadvantages:

• The mean is greatly affected by extremely high and low values (outliers).

Weighted Mean

The weighted mean ratio is the ratio of the total actual values to the total sales prices in a group. The weighted mean measures assessment level on a dollar-by-dollar basis whereas the mean and median do so on a property-by-property basis.

Example: Find the weighted mean of the data set.

Sum of actual values ÷ Sum of sales prices = Weighted mean

$484,600 Sum of actual values ÷ $488,500 Sum of sales prices = 0.9920 Weighted mean

Measures of Dispersion (Variation or Spread)

Measures of central tendency indicate only the general or overall level to which properties are appraised. They do not indicate the amount of variation or spread within the data set. In order to gain a more accurate picture of the equity and uniformity within the data set, measures of dispersion or variability are also needed. Consider the following two groups of ratios:

Neighborhood A
0.96
0.95
1.00
1.02
1.04
5.00 Total
Median = 1.00
Mean = 1.00

Neighborhood B
0.50
0.80
1.00
1.20
1.50
5.00 Total
Median = 1.00
Mean = 1.00

Both neighborhoods have the same median and mean sales ratio. It is obvious, however, that the properties in neighborhood A are appraised more equitably and uniformly than those in neighborhood B. Thus, the need for a measurement of variability.

Other Examples of Dispersion or Variability:

Moderate dispersion:

Considerable dispersion:

No dispersion:

Measures of dispersion or variability are either absolute or relative.

Absolute Measures

• Range
• Variance
• Standard Deviation
• Average Mean Absolute Deviation
• Average Median Absolute Deviation

Relative Measures

• Coefficient of Dispersion
• Coefficient of Variation

Absolute Measure

Median deviation is the average of the absolute deviations of the observations from their own median value. The absolute deviation is calculated by subtracting the median from the sales ratio. The resulting number will be treated as “absolute” or without a positive or negative sign.

Absolute value is defined as the value of a number regardless of its sign, e.g., the numbers (3) and (-3) both have an absolute value of 3.

Example:

Sum of absolute deviations from median / Number of observations = Average absolute deviation from the median

0.4096 ÷ 5 = 0.0819

Advantages and disadvantages:

The average absolute deviation from the median requires somewhat involved computation, but it uses all the data items, and it is a good measure of the typical dispersion among the items. It is not severely affected by an occasional very high or very low value among the observations.

Relative Measure

The coefficient of dispersion (COD) is a relative measure of dispersion. It measures the amount of dispersion among the observations in a set of data compared to a measure of central tendency for the same data set. The COD is a measure of dispersion widely used in assessment work. It is computed as follows:

(Average absolute deviation from the median ÷ Median sales ratio) × 100 = COD

It is the percentage by which the various individual sales ratios differ, on the average, from the median or mean ratio. The COD is the single most useful measure of assessment variability. Six steps are required to calculate the COD:

1. Compute the difference between each sales ratio and the measure of central tendency. The measure of central tendency used by the assessor’s office is the median.
2. Take the absolute value of the difference.
3. Sum the absolute differences.
4. Divide that sum by the number of observations (N) to obtain the average deviation.
5. Divide the average deviation by the appropriate measure of central tendency (the median).
6. Multiply that quotient by 100.

For assessment work, the usual method is the absolute deviation from the median divided by the median sales ratio. This is because the absolute deviation from the median is a stable measure of dispersion, and the median sales ratio is a stable measure of central tendency, especially when there are extreme data values.

Example:

0.4096 ÷ 5 = 0.0819 Average Absolute Deviation from the Median

Coefficient of Dispersion:

(Average absolute deviation from the median ÷ Median sales ratio) × 100 = COD

(0.0819 ÷ 0.9574) × 100 = 8.554 COD

Prorating Values

All property, real and personal, located in the state at 12:00 noon on January 1 is considered taxable unless expressly exempted by the Constitution or state statutes, § 39-1-105, C.R.S.

Statute requires all property in the state to be valued based on the condition and location of the property on January 1 of the assessment year. Certain exceptions to the rule require the assessor’s office to prorate values according to the period of time the property was legally taxable. The word “prorate” means to divide or distribute proportionately. Circumstances where proration/apportionment is required by law are:

1. Real property that was destroyed after the assessment date, § 39-5-117, C.R.S.
2. Real property that becomes exempt after the assessment date, §§ 39-3-124, 39-3-129, and 130(1)(a)(I), C.R.S.
3. Exempt real property that becomes taxable after the assessment date, §§ 39-3-124, 39-3-129, and 130(1)(b)(I), C.R.S.
4. Titled manufactured homes that enter or leave the state after the assessment date, §§ 39-5-204(1)(c)(II), and 205(3)(b), C.R.S.
5. Manufactured homes located on sales display lots of manufactured home dealers and listed as inventories of merchandise by the dealer are exempt, § 39-5-203(3)(a), C.R.S. If the manufactured home becomes part of the dealer’s inventory and located on a display lot or is removed from the display lot to a taxable location, the value is prorated by the day, based on the date the home changed taxable status.
6. The value of movable equipment and oil and gas rotary drilling rigs that enter or leave the county after the assessment date is apportioned between affected counties according to amount of time spent in each county, §§ 39-5-113 and 113.3, C.R.S.
7. Works of art qualify for a property tax exemption when the works of art are in the custody and control of the state or a political subdivision thereof, a library or any art gallery or museum which is owned or operated by a charitable organization whose property is irrevocably dedicated to charitable purposes and whose assets shall not inure to the benefit of any private person. The exemption applies only for the period of time the works of art are actually on loan, §§ 39-1-102(18), 39-3-123, and 39-5-113.5, C.R.S.

General Proration Rules

Prorate the actual value to the exact number of days the real property was legally taxable, except when a titled manufactured home moves into and out of the state. In those circumstances, the assessed value is prorated using whole months.

1. Determine the number of days the real property was legally taxable by adding together the number of days in each taxable month.
   
   Hint: September, April, June, and November have 30 days. All the other months have 31 days except for February. February has 28 days except in a leap year, then it has 29 days.
    
2. Determine the actual value per day by dividing the total actual value of the property by 365, or 366 for leap year. Round to the nearest cent.
3. Determine the taxable actual value by multiplying the resulting proportion (dollars per day) by the number of taxable days. Round to the nearest dollar.
4. Determine the prorated assessed value by multiplying the prorated taxable actual value by the appropriate assessment ratio. Round according to your county’s policy.
5. Verify the calculations.
6. It is essential to maintain a system to track records with prorated values so the appropriate changes can be made each January 1. See Chapter 3, Specific Assessment Procedures, for details.

Example:

A parcel of real property was taxable on January 1 and becomes exempt on June 1 of a non-leap year. The total actual valuation is $330,000, with $60,000 allocated to the land and $270,000 allocated to the building. The property will be classified as a charitable doctor’s office (9184/9284); however, the current subclassification codes are 2120/2220. Determine the prorated taxable value of the property.

FIRST: Determine the number of taxable and exempt days. The property is taxable from January 1 through May 31:
January ........... 31
February ......... 28
March ............. 31
April ............... 30
May ................ 31
151 Days

June 1 is not included because that is the day it became exempt.

SECOND: Determine the land and improvement actual value per day.

Land:
$60,000 Actual value ÷ 365 Days = $164.38 Per day (2120)

Improvement:
$270,000 Actual value - $30,000 Adjustment = $240,000 Adjusted actual value

$240,000 Adj. actual value ÷ 365 Days = $657.53 Per day (2220)

THIRD: Determine the prorated taxable and exempt actual values.

Land:
$164.38 Per day × 151 Taxable days = $24,821 Prorated taxable actual value (2120)
$164.38 Per day × 214 Exempt days = $35,177 + 2 Prorated exempt actual value (9184)

Improvement:
$657.53 Per day × 151 Taxable days = $99,287 Prorated taxable adj. actual value (2220)
$657.53 Per day × 214 Exempt days = $140,711 + 2 Prorated exempt adj. actual value (9284)

NOTE: The rounding adjustment is made to the time-frame with the greatest number of days.

FOURTH: Determine the prorated taxable and exempt assessed values.

Land:
$24,821 Prorated taxable actual value × 0.29 Assessment rate = $ 6,925 Assessed taxable value
$35,179 Prorated exempt actual value × 0.29 Assessment rate = $9,815 Assessed exempt value

Improvement:
$99,287 Prorated taxable actual value × 0.29 Assessment rate = $27,701 Assessed taxable value
$140,713 Prorated exempt actual value × 0.29 Assessment rate = $39,259 Assessed exempt value

Round the prorated taxable assessed value to the nearest $1.

FIFTH: There are many ways to verify the calculations. The following is one example:

Land:
$24,821 Taxable actual value (2120)
$35,179 Exempt actual value (9184)
$60,000

Improvement:
$99,287 Taxable actual value (2220) 
$140,713 Exempt actual value (9284) 
$240,000

A record reflecting four subclass codes for the property should appear on the assessment roll: a taxable land code, a taxable improvement code, an exempt land code and an exempt improvement code.

Destroyed or Demolished Property Proration Rule

The assessed value of a real property improvement that is demolished or destroyed is prorated from January 1 of the current year to the date of destruction. The date the property was destroyed is not counted as a taxable day.

The property owner has the responsibility of reporting the real property as destroyed and the date of the occurrence. A demolition permit may serve as notification of destruction. If the destruction or demolition is not reported, the assessor is not required to prorate the value in accordance with § 39-5-117, C.R.S. If the destruction is well publicized, the assessor may wish to initiate a re-inspection of the property or properties involved in the interest of public relations. Statute does not authorize the proration of value for damaged property.

Property improvements destroyed after assessment date.

Whenever any improvements are destroyed or demolished subsequent to the assessment date in any year, it is the duty of the owner thereof or the owner’s agent to promptly notify the assessor of such destruction or demolition and the date upon which the same occurred. In all such cases, such improvements shall be valued by the assessor at the proportion of its valuation for the full calendar year that the period of time in such year prior to its destruction or demolition bears to the full calendar year. Failure of the owner thereof or of the owner’s agent to so notify the assessor prior to the date taxes are levied shall be considered a waiver, and no proportionate valuation by the assessor shall then be required.

§ 39-5-117, C.R.S.

Reclassifying the land associated with a destroyed improvement:
If the improvement is entirely destroyed the assessor must determine how to classify the underlying land on the following assessment date. Non-residential land should be classified as vacant lots, with abstract codes 0200, 0300, or 0400, according to zoning and permitted uses. However, as provided in § 39-1-102(14.4)(b), C.R.S., if the improvement is residential and destroyed by a “natural cause,” the residential land classification shall remain in place for the year of destruction and the two subsequent property tax years. The residential classification may remain in place for additional subsequent property tax years if the assessor determines there is evidence the owner intends to rebuild or locate a residential improvement on the land.

Additionally, if a residential improvement is destroyed, demolished, or relocated after January 1, 2018, § 39-1-102(14.4)(c)(I), C.R.S., allows the residential land classification to stay in place for the year in which the improvements were destroyed, demolished or relocated and one subsequent property tax year as long as the assessor is able to determine that there is evidence that the owner intends to rebuild or locate a residential improvement on the property. The same proration rules apply to these types of residential improvements that are destroyed, demolished or relocated. These improvements, however, do not qualify for the reimbursement from the state of Colorado as they were not destroyed by natural causes.

When calculating prorated values for destroyed or demolished real property, the most important thing to remember is to prorate only the improvement value. Separate the land value from the improvement value, prorate the improvement value to the date of destruction, then add the land back to the prorated improvement value to arrive at the total taxable value for the property.

Example: Real Property Destroyed or Demolished

A commercial property has an actual value of $605,860, with $100,000 allocated to land and $505,860 allocated to improvements. The building was completely destroyed by explosion and fire on March 12 of the current year. The owner notified the assessor prior to the date taxes were levied. Determine the prorated value of the property.

Please note, you must include the actual value adjustment in the calculation. It is easiest to make that adjustment to the improvement value in the beginning of the calculations.

First: Determine the number of taxable days; do not count the day of destruction. The property is taxable from January 1 through March 11.

January ...........31
February .........28
March .............11
                        70 Days

Second: Determine the adjusted actual value per day for the improvement. The land value is not prorated.

$505,860 Improvement actual value - $30,000 Adjustment = $475,860

$475,860 Improvement actual value ÷ 365 Days = $1,303.73 Per day

Third: Determine the prorated taxable adjusted actual value of the improvement.

$1,303.73 Per day × 70 Taxable days = $91,261 Prorated taxable improvement adj. actual value

Fourth: Determine the prorated taxable assessed value of the improvement.

$91,261 Prorated taxable improvement actual value × 0.29 Assessment rate = $25,461.82

$25,461.82 Rounded to the nearest $1 = $25,462 Improvement assessed value

Fifth: Verify the calculations:

$475,860 Adj. actual value imp. × 0.279 Assessment rate = $132,765 Assessed value
$132,765 Assessed value ÷ 365 Days = $363.74 Assessed value per day
$363.74 Assessed value per day × 70 Taxable days = $25,462 Taxable assessed value

365 Days - 70 Taxable days = 295 Non-Taxable days
$363.74 Per day × 295 Non-taxable day = $107,303 Non-taxable assessed value
$107,303 Non-taxable assessed value + $25,462 Taxable assessed value = $132,765

A record reflecting the full land value and the prorated improvement value should appear on the assessment roll.

Tax Calculation:

Determine the amount of the tax bill the owner will receive in January assuming a tax rate of 0.043270 (43.270 mills.)

Determine the total taxable assessed value of the property by adding the assessed value of the land to the prorated assessed value of the improvements.

$100,000 Actual value land × 0.279 Assessment rate = $27,900 Assessed land value 
$ 25,462 assessed improved value + $27,900 assessed land value = $53,362 Total assessed value
 

Multiply the total assessed value by the tax rate to determine the taxes due.

$53,362 Total assessed value × 0.043270 Tax rate = $2,309 Tax

Property Taxes Reimbursed by the State on Destroyed Property – Report to Treasurer

In 2014, the legislature passed HB 14-1001 that created § 39-1-123, C.R.S. This provides for a reimbursement of property taxes to a property owner whose real and/or business personal property was destroyed by a natural cause.

Definitions.

(8.4) “Natural cause” means fire, explosion, flood, tornado, action of the elements, act of war or terror, or similar cause beyond the control of and not caused by the party holding title to the property destroyed.

§ 39-1-102, C.R.S.

The value removed from the tax roll due to real property proration is NOT reimbursed by the state through this process. Only the assessed value of the destroyed improvement(s) that remains on the tax roll in the year of the event is reported. Except in rare circumstances as detailed below, the assessed value of the land and site improvements are not reported. In the case of business personal property, the entire value of the qualifying account is reported.

In the case of real property improvements with multiple buildings, there may be certain buildings that are totally destroyed while others are only damaged or not affected. In such cases, the appraiser should make note of the status of each building so the value of destroyed improvements can be prorated to the date of the event and the remaining value of those destroyed improvements tracked for this report. The land value is not prorated or included in the report, neither are the assessed values of any damaged or unaffected improvements.

If there are no buildings, but site improvements such as septic system, utility or sewer lines/hookups, well or water system which are totally destroyed, any contributory value of these site improvements should be tracked as reimbursable for the report to the county treasurer. However, the value is NOT prorated for the year of the event.

If the event causes the entire legally described parcel to lose all value, the total value of the land should be tracked for the reimbursement report. The value is NOT prorated for the year of the event.

An example of such “destroyed land” would be if the streambed was permanently changed so that the entire legal description was under water. There would have to be a presumption that the cost to reclaim the parcel would not be financially feasible or not allowed by a federal or state authority.

For business personal property, the property must be totally destroyed, and be reported on a single schedule to qualify for reimbursement. The personal property can be owned or leased, but if the owner or lessor owns/leases other property in the county that is also reported on the same schedule, there is no qualifying value for reimbursement. This provision effectively prevents any personal property of a state assessed company from qualifying. The total value of the qualifying personal property account should be tracked for the report to the county treasurer, but no proration is made for the year of the event.

An example of qualifying destroyed personal property would be: a flood or tornado destroyed/damaged a grocery store building so that all the shelving, office equipment and furniture, cash registers, and grocery carts were completely destroyed, AND all this was listed on the owner’s personal property schedule. If ANY of the personal property listed was merely damaged or not affected, there is not any value qualifying as reimbursable.

On or before December 15, the assessor will forward to the county treasurer a report of the property that was destroyed by a natural cause through November of that year. Be careful that property destroyed/demolished due to non-reimbursable causes is not included (intentionally torn down or demolished; destroyed by property owner; or removed for any reason other than a natural cause.) These properties still qualify for proration, but are not reimbursable under this statute. The reimbursable report must include the following information:

For real property (includes site improvements and land, if applicable):

• Legal description of each parcel
• Schedule or parcel number
• Name of owner
• Description of destroyed property
• Date of destruction
• The prorated property taxes due on the property

For taxable business personal property:

• Schedule or identifying number
• Name of the owner or lessor and business name if applicable
• Property taxes due (no proration)

If, after submitting the December report to the county treasurer, the assessor discovers additional real or personal property that was destroyed by the natural cause; the assessor shall forward to the treasurer a supplemental report by July 1 of the next tax year (October 1 for public utility property).

Property Changing Taxable Status

A change in tax status occurs when a governmental entity buys or sells property, or when the Administrator issues a determination granting exemption, a forfeiture, or a revocation. A change in tax status also occurs when real property is used for governmental purposes and is leased or rented, for at least a one-year term, to the state, a political subdivision, or a state-supported institution of higher education, § 39-3-124(1)(b)(I)(A).

If an exempt property becomes taxable or a taxable property becomes exempt for a portion of the assessment year, general proration rules are used to determine the number of taxable days, the actual value per day, the prorated actual value, and the prorated assessed valuation. As illustrated previously, this is accomplished by determining the number of taxable days, multiplying the number of taxable days by the actual value per day, and then multiplying by the appropriate assessment ratio.

Exemption Proration Rules

First: Determine the number of days the real property was legally taxable by adding together the number of days in each month.

Note: The date the exemption was granted is not taxable. The date the exemption was lost is taxable.

Exemption for governmental entities is determined by the delivery date of the deed; the property is exempt for the number of days the exempt entity held title. Refer to Title Conveyance, Chapter 3, Specific Assessment Procedures, for additional information on deed priority dates.

Priority of deed dates:

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

Second: Divide the actual value of the land and improvement by 365 days (366 for leap year) to find the value per day for each.

Third: Multiply the value per day by the number of taxable days. Multiply the value per day by the number of exempt days.

Fourth: If a determination involves a percentage of the property, a double calculation is required. The number of days the property was 100 percent taxable must be multiplied by the value per day. This total is then added to the total value for the number of days exempt, multiplied by the value per day, and then multiplied by the percent taxable. See Example 2.

Fifth: Sum the taxable value and the exempt values to verify they equal the full actual value. See Example 1.

A record reflecting four subclass codes for the property should appear on the assessment roll; a taxable land code, a taxable improvement code, an exempt land code and an exempt improvement code.

Example 1:

Owner A was granted exemption effective April 15 of the current year. The total property actual value is $99,460, with $24,000 allocated to the land and $75,460 allocated to the building.

First: Determine the number of taxable and exempt days.

January .............31
February ...........28
March ...............31
April .................14
104 Taxable days