Colorado § 31-20-101 - Power to levy taxes - on what property.

§ 31-20-101. Power to levy taxes - on what property.

The governing body of any municipality has the power to levy taxes, the same kinds and classes, upon taxable property, real, personal, and mixed, within the municipal limits as are subject to taxation for state or county purposes in accordance with the laws of this state.

Source: L. 75: Entire title R&RE, p. 1127, § 1, effective July 1.

Editor's note: This section is similar to former § 31-20-101 as it existed prior to 1975.

Cross references: For the procedure to increase a tax levy beyond statutory limits, see § 29-1-302.

ANNOTATION

Law reviews. For note, "The Constitutionality of a Colorado Municipal Income Tax", see 25 Rocky Mt. L. Rev. 343 (1953).

The specific taxing power is governed by this section. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

When unconstitutional. Where taxes result in a flagrant inequality between the burden imposed and the benefit received, such is confiscatory and unconstitutional. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

To enforce a special assessment for a purpose which does not confer a special benefit upon the property upon which it is levied would result in taking private property without compensation, and without due process of law. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Scope of power. City councils and boards of trustees of cities and towns incorporated under the general statutes are authorized to levy taxes for city or town purposes upon the property in the city or town subject to taxation, and the time within which such annual levy shall be made is not limited, except that it must be done before the county clerk extends the taxes on the tax list and delivers it to the treasurer for collection. Boston & Colo. Smelting Co. v. Elder, 20 Colo. App. 96, 77 P. 258 (1904).

Taxation defined. Taxation, as the word is employed in the Colorado constitution and statutes generally, is that burden or charge upon all property laid for raising revenue for general public purposes in defraying the expense of government. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Taxation and assessment are not synonymous terms, each is a separate and distinct exercise of the sovereign power to tax. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

If the tax is for a "general" purpose it must be an ad valorem tax. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Assessments are local and resorted to for making local improvements on the theory that the property affected is increased in value at least to the amount of the levy. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

An assessment in the nature of a special tax is for purposes of municipal improvement conferring a special benefit upon the property being assessed. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Special benefits which will sustain a special assessment must be immediate, and of such a character that they can be seen and traced; remote or contingent benefits enjoyed by the general public will not sustain a special assessment. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Portion of assessment for general benefit invalid. So much of an improvement as is designated and utilized for the general benefit of the inhabitants and property within the limits of a municipality is in no sense local, and special assessments to raise funds to construct, purchase, pay for, or maintain that portion of it, cannot be lawfully levied. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

The revenues derived from frontage taxes are designated for general purposes of a town, i.e., in maintenance of the town's water system, roads and road equipment, and the manner of imposition of taxes upon properties by a municipality is governed by § 3 of art. X, Colo. Const., prescribing that the same shall be uniform ad valorem taxes. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Authority to levy a special frontage tax can only be upheld on the theory that the property upon which it is levied is specially benefitted by the purposes to which such tax may be applied. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Spending of special assessments. If the "taxes" are special assessments upon the properties, the revenues therefrom could not be diverted to providing for general town purposes, but would necessarily have to be used and confined to payment for the capital improvement resulting in an equivalent benefit to plaintiff's properties. Ochs v. Town of Hot Sulphur Springs, 158 Colo. 456, 407 P.2d 677 (1965).

Showing needed to invalidate tax. A grant of power to impose municipal taxes involves a decision by the general assembly that benefits proportionate to the burden will be conferred, and the burden of proof is upon him who assails the legislative action, and to warrant judicial interference, he must show a clear case of violation of the principle exempting private property from condemnation to public use. Brown v. Denver, 3 Colo. 169 (1877).