Colorado § 31-12-604 - Lands subject to tax for prior indebtedness.

§ 31-12-604. Lands subject to tax for prior indebtedness.

The land so disconnected is not exempt from the payment of any taxes lawfully assessed against it for the purpose of paying any indebtedness lawfully contracted by the governing body of such city while such land was within the limits thereof and which remains unpaid and for the payment of which said land could be lawfully taxed.

Source: L. 75: Entire title R&RE, p. 1102, § 1, effective July 1.

Editor's note: This section is similar to former § 31-8-404 as it existed prior to 1975.

ANNOTATION

Annotator's note. Since § 31-12-604 is similar to former § 31-8-404 prior to the 1975 repeal and reenactment of this title, and laws antecedent thereto, a relevant case construing a prior provision has been included in the annotations to this section.

Change in form of debt inconsequential. The plaintiff contends that this section is so worded that the change of the form of the indebtedness precludes a taxation of the disconnected land that otherwise was within the contemplation of the section. What possible bearing the change in form of the debt would have, we are unable to conceive. The section says that the disconnected lands shall not be exempt from taxes for the purposes of paying any indebtedness lawfully contracted while the lands are within the limits of the town. The indebtedness now evidenced by the refunding bonds, was contracted while plaintiff's land was within these limits, and it makes no difference that the original form of the debt has been changed into a judgment, then into funding, and then into refunding, bonds. Town of Aurora v. Watkins, 77 Colo. 234, 236 P. 556 (1925).

When the purchasers of the original bond issue acquired the water bonds the law was, and the bonds so stated, that all the property within the limits of the town was subject to taxation for raising a fund to pay the bonded debt, and even had the general assembly explicitly enacted a disconnecting statute that property within the town when the debt was contracted shall, after disconnection, be exempt from taxation for the purpose of paying the bonded debt, the act would be unconstitutional. Town of Aurora v. Watkins, 77 Colo. 234, 236 P. 556 (1925).