Colorado § 39-3-113 - Residential property - while being constructed - charitable purposes - exemption - limitations.

§ 39-3-113. Residential property - while being constructed - charitable purposes - exemption - limitations.

Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is residential and consists of land and one or more structures which are in the process of being constructed if such property is irrevocably committed to residential use in accordance with the requirements set forth in section 39-3-109 (1) or 39-3-112 (2) and (3). The exemption provided by this section shall terminate on the assessment date subsequent to the issuance of a permit or other authority to occupy such structure or structures. Thereafter, such property shall be subject to the provisions of sections 39-3-109 and 39-3-112. No requirement shall be imposed that use of property which otherwise is exempt pursuant to the provisions of this section shall benefit people of Colorado in order to qualify for said exemption. Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.

Source: L. 89: Entire article R&RE, p. 1475, § 1, effective April 23. L. 90: Entire section amended, p. 1713, § 7, effective June 9.

Editor's note: This section is similar to former § 39-3-101 (1)(g) as it existed prior to 1989.

ANNOTATION

Annotator's note. Since § 39-3-113 is similar to § 39-3-101 (1)(g) as it existed prior to the 1989 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.

Prospective site of building not exempt. Under this section and § 5 of art. X, Colo. Const., property held with the intention of erecting thereon at some future time buildings for purely charitable purposes is not exempt from taxation. City & County of Denver v. George Washington Lodge Ass'n, 121 Colo. 470, 217 P.2d 617 (1950).

Requiring ownership as well as use deemed within constitutional authorization. In requiring ownership, as well as use for strictly charitable purposes, the general assembly acted within its power, under § 5, art. X, Colo. Const., to vary, by general law, such exemptions created by the constitution. First Nat'l Bank v. Bd. of County Comm'rs, 189 Colo. 128, 538 P.2d 427 (1975).

When there is neither a present charitable use nor the vestige of a building in which such use might be carried on, there is no possible basis for exemption. Grace Calvary Church v. City & County of Denver, 130 Colo. 290, 274 P.2d 983 (1954).

Where unfinished building deemed within exemption. The fact that a building remains in an unfinished state, due to inability to obtain funds to complete it, does not destroy the property's tax exempt status, because of the uses, wholly consistent with the operation of a hospital, to which it is being put pending its completion. City & County of Denver v. Spears Free Clinic Hosp. for Poor Children, 142 Colo. 347, 350 P.2d 1057 (1960).