Colorado § 39-1-113 - Abatement and refund of taxes.

§ 39-1-113. Abatement and refund of taxes.

(1) Except as otherwise provided in subsection (1.5) of this section, no decision on any petition regarding abatement or refund of taxes, as provided for in section 39-10-114, shall be made by the board of county commissioners unless a hearing is had thereon, at which hearing the assessor and the taxpayer shall have the opportunity to be present. The board may appoint independent referees who are experienced in property valuation to conduct the hearing on behalf of the board, to make findings, and to submit recommendations to the board for its final decision.

(1.5) [Editor's note: This version of subsection (1.5) is effective until January 1, 2027.] Upon authorization by the board of county commissioners, the assessor may review petitions for abatement or refund and settle by written mutual agreement any such petition for abatement or refund in an amount of ten thousand dollars or less per tract, parcel, or lot of land or per schedule of personal property. Any abatement or refund agreed upon and settled pursuant to this subsection (1.5) shall not be subject to the requirements of subsection (1) of this section.

(1.5) [Editor's note: This version of subsection (1.5) is effective January 1, 2027.] Upon authorization by the board of county commissioners, the assessor may review petitions for abatement or refund and settle by written mutual agreement any such petition for abatement or refund in an amount of twenty thousand dollars or less per tract, parcel, or lot of land or per schedule of personal property. Any abatement or refund agreed upon and settled pursuant to this subsection (1.5) shall not be subject to the requirements of subsection (1) of this section.

(1.7) Every petition for abatement or refund filed pursuant to section 39-10-114 shall be acted upon pursuant to the provisions of this section by the board of county commissioners or the assessor, as appropriate, within six months of the date of filing such petition.

(2) [Editor's note: This version of subsection (2) is effective until January 1, 2027.]

(a) Whenever any abatement or refund in an amount of ten thousand dollars or less is recommended by the board of county commissioners, the board shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(b) Whenever any abatement or refund in an amount of ten thousand dollars or less has been agreed upon and settled by the assessor pursuant to subsection (1.5) of this section, the assessor shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the assessor shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(2) [Editor's note: This version of subsection (2) is effective January 1, 2027.]

(a) Whenever any abatement or refund in an amount of twenty thousand dollars or less is recommended by the board of county commissioners, the board shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(b) Whenever any abatement or refund in an amount of twenty thousand dollars or less has been agreed upon and settled by the assessor pursuant to subsection (1.5) of this section, the assessor shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the assessor shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(3) [Editor's note: This version of subsection (3) is effective until January 1, 2027.] Whenever any abatement or refund in an amount in excess of ten thousand dollars is recommended by the board of county commissioners, two copies of an application therefor, reciting the amount of such abatement or refund and the grounds upon which it should be allowed, shall be submitted to the administrator for review pursuant to section 39-2-116. If an application is approved, the board of county commissioners shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board of county commissioners shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(3) [Editor's note: This version of subsection (3) is effective January 1, 2027.] Whenever any abatement or refund in an amount in excess of twenty thousand dollars is recommended by the board of county commissioners, the board shall submit one copy of an application for abatement or refund in an electronic or paper format, reciting the amount of such abatement or refund and the grounds upon which it should be allowed, to the administrator for review pursuant to section 39-2-116; except that the board of county commissioners is not required to submit an application to the administrator in the case of an abatement or refund caused by a valuation change to ensure matching values within the same reassessment cycle. If an application is approved, the board of county commissioners shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board of county commissioners shall order the refund of taxes pro rata by all jurisdictions receiving payment thereof.

(4) (Deleted by amendment, L. 91, p. 1962, § 2, effective June 5, 1991.)

(5) (a) If a hearing is required pursuant to subsection (1) of this section, the board of county commissioners shall provide at least seven days' notice of the scheduled hearing on a petition for abatement and refund of taxes to the person signing such petition and the taxpayer if the taxpayer did not sign the petition. Except as authorized in paragraph (b) of this subsection (5), notice shall be provided by sending to such person through the United States mail notification of the date, time, and place of the hearing.

(b) A board of county commissioners may authorize by resolution a person required to be notified by paragraph (a) of this subsection (5) or such person's agent to elect to receive the notice by fax or electronic mail at a phone number or electronic mail address supplied by such person. If no election is made by such person, the board of county commissioners shall mail the required notice.

(6) Notwithstanding any law to the contrary, for taxes levied on and after January 1, 1990, a taxpayer may file a petition for abatement or refund of taxes levied on property if the valuation of such property was the subject of an arbitration hearing pursuant to section 39-8-108.5 and the arbitrator presiding over such hearing failed to deliver a decision to the taxpayer prior to the beginning date of the period during which the assessor sits to hear all objections and protests concerning the valuation of such property in the year following the year in which such arbitration hearing was held.

Source: L. 64: R&RE, p. 679, § 1. C.R.S. 1963: § 137-1-13. L. 70: p. 381, § 13. L. 77: Entire section amended, p. 1733, § 6, effective June 20. L. 81: Entire section amended, p. 1837, § 1, effective January 1, 1982. L. 87: Entire section amended, p. 1397, § 1, effective May 6. L. 88: (1) to (3) amended, pp. 1290, 1294, §§ 23, 27, effective May 23. L. 90: (2) and (3) amended, p. 1703, § 38, effective June 9. L. 91: (1) and (4) amended and (5) and (6) added, p. 1962, § 2, effective June 5. L. 92: (1), (2), (5), and (6) amended and (1.5) and (1.7) added, p. 2205, § 1, effective June 3. L. 93: (1) amended, p. 1744, § 3, effective July 1. L. 96: (3) amended, p. 649, § 1, effective May 1. L. 2003: (1) amended, p. 1347, § 1, effective August 6. L. 2008: (2) and (3) amended, p. 1246, § 5, effective August 5. L. 2010: (1.5), (2), and (3) amended, (HB 10-1117), ch. 195, p. 841, § 1, effective August 11. L. 2016: (5) amended, (SB 16-172), ch. 280, p. 1148, § 1, effective June 10. L. 2026: (1.5), (2), and (3) amended, (SB 26-046), ch. 10, p. 40, § 3, effective January 1, 2027.

Cross references: For approval of tax abatements or refunds by the property tax administrator, see § 39-2-116; for further restrictions relating to the abatement, refund, and cancellation of taxes, see § 39-10-114.

ANNOTATION

Where this section and § 39-10-114 protect taxpayer's due process rights. Where taxpayer complained that county assessor had failed to give the required timely notice of an increased assessment, thus depriving him of his statutory right to litigate validity of the assessment before paying tax, no federally guaranteed rights were abridged because the abatement and refund procedures of this section and § 39-10-114 allowed plain, adequate, and complete remedy, thus fully protecting the taxpayer's due process rights. Lamm v. Barber, 192 Colo. 511, 565 P.2d 538 (1977).

Prior to suit, taxpayer must exhaust administrative remedies. The remedies contained in § 39-10-114, relating to procedures for abatement or cancellation of taxes and this section are complete and adequate; thus, prior to commencing suit on illegal taxation issues, taxpayers are required to exhaust the administrative remedies detailed in these sections. Davison v. Bd. of County Comm'rs, 41 Colo. App. 344, 585 P.2d 315 (1978); S. Cafeteria, Inc. v. Prop. Tax Adm'r, 677 P.2d 362 (Colo. App. 1983).

By approving taxpayer's petition "conditionally" or otherwise and submitting it to the property tax administrator for further action, the board of county commissioners' procedural rights as a party ended under the statutory scheme governing abatement and refund proceedings. Huerfano County Bd. of County Comm'rs v. Atl. Richfield Co., 976 P.2d 893 (Colo. App. 1999).

A nonoperating fractional interest owner does not have a legally protected interest in the valuation and taxation of their oil and gas leasehold and land and, therefore, lacks standing to challenge a retroactive assessment and property tax increase. Colo. Prop. Tax Adm'r v. CO2 Comm., 2023 CO 8, 527 P.3d 371.

When section applies. This section applies to the refund of taxes paid under § 39-8-109 after a taxpayer who sought administrative relief under § 39-5-122 prevailed before the board of assessment appeals or the district court or when property taxes cannot be challenged under § 39-5-122. Bd. of Assessment Appeals v. Benbrook, 735 P.2d 860 (Colo. 1987).

This section and § 39-10-114 provide a remedy for the abatement or refund of taxes that cannot be challenged under § 39-5-122. Valley Country Club v. Bd. of Assessment Appeals, 778 P.2d 285 (Colo. App. 1989), rev'd on other grounds, 792 P.2d 299 (Colo. 1990).

The abatement procedure may be used to provide taxpayer relief from the overassessment of his property in situations where his knowledge of excessive charges is acquired subsequent to the usual statutory deadlines for protest. Valley Country Club v. Bd. of Assessment Appeals, 778 P.2d 285 (Colo. App. 1989), rev'd on other grounds, 792 P.2d 299 (Colo. 1990).

Board of assessment appeals may conduct de novo review in reviewing taxpayer's appeal from property tax administrator. Bd. of Assessment Appeals v. Valley Country Club, 792 P.2d 299 (Colo. 1990).

Illegal or erroneous tax. Where one owner of a converted condominium, after pursuing administrative remedies under § 39-5-122, obtained a declaration from district court that the imposition of an increased tax on his converted condominium was illegal, petitioners, as owners of identical condominiums were entitled to seek relief under the abatement and refund provisions of this section and § 39-10-114 because the tax had been declared illegal. Bd. of Assessment Appeals v. Benbrook, 735 P.2d 860 (Colo. 1987).

There is no need to characterize the tax paid as wholly illegal before the taxpayer may obtain abatement and refund. Bd. of Assessment Appeals v. Benbrook, 735 P.2d 860 (Colo. 1987).

Refund statute not applicable where property has been assessed improperly because of taxpayer's error in reporting and where taxpayer did not make a timely objection. Coquina Oil v. Larimer Co. Bd. of Equal., 742 P.2d 932 (Colo. App. 1987), aff'd, 770 P.2d 1196 (Colo. 1989); Aurora Plaza v. Bd. of Assessment Appeals, 770 P.2d 1204 (Colo. 1989); Amoco Prod. v. Bd. of Assessment Appeals, 770 P.2d 1207 (Colo. 1989).

Where error is due at least in part to the taxing authority, a taxpayer can recover a refund under the clerical error provision of this section, after the time to protest under § 39-5-122 has passed. Coquina Oil Corp. v. Bd. of Equaliz., 770 P.2d 1196 (Colo. 1989).

Applied in Bd. of County Comm'rs v. District Court, 199 Colo. 338, 607 P.2d 999 (1980); Laredo Hous. Apts., Ltd. v. Bd. of County Comm'rs, 628 P.2d 135 (Colo. App. 1980); Laredo Hous. Apts., Ltd. v. Bd. of Assessment Appeals, 675 P.2d 23 (Colo. App. 1983).