Colorado § 22-42-122 - Changes in boundaries - liability.

§ 22-42-122. Changes in boundaries - liability.

(1) Nothing in this article or in any other provision of law shall be construed so as to release the taxable property within a school district which incurred bonded indebtedness from liability for its proportionate share of the outstanding obligations thereof.

(2) The outstanding bonded indebtedness, or proportionate share thereof, incurred by a school district which is dissolved as a result of the formation of a new school district may be assumed by said new school district in the manner provided by article 30 of this title.

(3) The taxable property located within the territory of a school district which is dissolved and the resultant unorganized territory annexed to an adjacent school district shall be liable for its proportionate share of the bonded indebtedness previously incurred by the annexing school district.

(4) The taxable property located within the territory of a school district which is detached and annexed to an adjacent school district shall be liable for its proportionate share of the bonded indebtedness previously incurred by the annexing school district.

(5) The taxable property located within a capital improvement zone of a school district shall be liable for bonded indebtedness incurred by the school district pursuant to this article.

Source: L. 64: R&RE, p. 557, § 1. C.R.S. 1963: § 123-11-23. L. 94: (5) added, p. 1791, § 5, effective January 1, 1995. L. 2008: (5) amended, p. 1900, § 80, effective August 5.

ANNOTATION

Annotator's note. Cases relevant to § 22-42-122 decided prior to its earliest source, § 123-11-23, C.R.S. 1963, as amended, have been included in the annotations to this section.

Section held constitutional. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954).

Owner of property annexed to district with existing bonded indebtedness has no right to vote on the indebtedness. While those property owners in a school district, who are also legal voters therein, are entitled to an opportunity to give or withhold their consent to the incurring of the bonded indebtedness at the election held for that purpose, § 7 of art. XI, Colo. Const., does not give the right to vote on the question of issuance of the bonds to owners of property which subsequently becomes a part of the district issuing the bonds. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954).

Section 7 of art. XI, Colo. Const., is directed against levying taxes on inhabitants without their consent. Section 7 of art. XI, Colo. Const., is directed against the school districts and political subdivisions as such, to prevent their levying or assessing taxes against their inhabitants without their consent, but does not prohibit individual taxpayers from assuming such burdens as they voluntarily desire to assume. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954).

Where the majority of the qualified electors in the districts vote in favor of dissolution and annexation this section is applicable. Bd. of County Comm'rs v. Carpenter, 134 Colo. 356, 303 P.2d 1104 (1956).

Annexed property is liable for existing indebtedness of annexing body. As a general rule, in the absence of statute or constitutional provision to the contrary, territory annexed to a municipal corporation or school district is liable to pay its proportionate share of the existing indebtedness of the corporation to which it is annexed. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954).

The owners of property in the annexed territory should share their proportionate part of the burden legally assumed before their property was annexed, since they reap the benefits thereof. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954); Bd. of County Comm'rs v. Carpenter, 134 Colo. 356, 303 P.2d 1104 (1956).

Taxes will be levied on the annexed property. The electors in a newly annexed area must assume their proportionate share of the existing indebtedness of the annexing district, and county commissioners must include the newly annexed property in the levy of taxes for this purpose. Bd. of County Comm'rs v. Carpenter, 134 Colo. 356, 303 P.2d 1104 (1956).

Regardless of existing indebtedness of the annexed districts. Annexed property of a school district must bear its proportionate share of existing bonded indebtedness, regardless of any existing indebtedness of the annexed districts, where the annexing district had not received any benefits from any preexisting indebtedness of any of the annexed districts. Bd. of County Comm'rs v. Carpenter, 134 Colo. 356, 303 P.2d 1104 (1956).

For tax purposes, district boundaries are determined on date of levy. As between the date when a tax was authorized and the date when it was actually levied, boundaries are to be considered as they exist on the day of the actual levy, rather than the day authority to tax was granted. Linke v. Bd. of County Comm'rs, 129 Colo. 165, 268 P.2d 416 (1954).

Annexed districts are not freed from their own existing bonded indebtedness incurred prior to annexation. Callaway v. Denver & R. G. R. R., 6 Colo. App. 284, 40 P. 573 (1895); Bd. of County Comm'rs v. Carpenter, 134 Colo. 356, 303 P.2d 1104 (1956).

For previous limitation of liability to property within school district at time of issue of bonds, Callaway v. Denver & R. G. R. R., 6 Colo. App. 284, 40 P. 573 (1895).