Colorado § 37-41-124 - Assessment - collection - redemption - deed.

§ 37-41-124. Assessment - collection - redemption - deed.

(1) The revenue laws of this state for the assessment, levying, and collection of taxes on real estate for county purposes, as modified in this section, shall be applicable for the purposes of this article 41, including the enforcement of penalties and forfeiture for delinquent taxes. Before July 1, 2024, however, in case of sale of any lot or parcel of land, or any interest therein, for delinquent irrigation district taxes or delinquent irrigation district and general taxes, when there are no bids therefor on any of the days of such tax sale, the same shall be struck off to the irrigation district in which such land is located for the amount of the taxes, interest, and costs thereon, and a certificate of sale shall be made out to said district therefor and delivered to its secretary, who shall file the same in the office of its board of directors and record the same in a book of public record to be kept by said board for such purpose, but no charge shall be made by the county treasurer for making such certificate, and in such case the county treasurer shall make the entry "struck off to .............. irrigation district" on the treasurer's records, as well as an entry showing the amount of the general irrigation district taxes and interest thereon, respectively, for which said lands were offered for sale, together with the cost attending such sale.

(2) Before July 1, 2024, no taxes assessed against any land so struck off to said district under the provisions of this section shall be payable until the same has been derived by the district from the sale or redemption of such lands. Such irrigation district or its assignee shall be entitled to a tax deed for said lands in the same manner and subject to the same equities as if a private purchaser at said tax sale, upon the payment to the county treasurer at the time of demanding said deed of such sum as the board of county commissioners of such county at any regular or special meeting may decide.

(3) Before July 1, 2024, in case the owner of said lot or parcel of land, or interest therein, desires to redeem the same at any time before said tax deed shall be issued, the same may be done in the same manner as is provided by law to be done, in case said lot or parcel of land, or interest therein, had been purchased by a bidder at said tax sale or had been struck off to the county. In such case the county treasurer shall forthwith issue a certificate of redemption therefor and notify the district secretary of said fact, who shall thereupon make a suitable transfer entry upon the secretary's record and return the certificate of sale to the county treasurer for cancellation.

(4) Before July 1, 2024, in case any person desires to obtain such certificate of purchase so issued to said irrigation district, the same may be done in the same manner as provided by law to be done in case said lot or parcel of land, or interest therein, had been purchased by a bidder at said tax sale or had been struck off to the county, upon payment to the county treasurer of the required amount in cash, or in cash together with warrants not in excess of the district general fund tax, or in cash and interest coupons or bonds not in excess of the irrigation district and redemption fund tax, or in cash and in warrants and bonds, respectively, not in excess of said respective funds.

(4.5) Notwithstanding any law to the contrary, on or after July 1, 2024, an irrigation district, an assignee of an irrigation district, a holder of a certificate of purchase, or a county treasurer shall follow the procedures established in article 11.5 of title 39 and shall not follow the procedures established in this section or article 11 of title 39 concerning the issuance of a tax deed. Notwithstanding any law to the contrary, on or after July 1, 2024, a lot or parcel of land shall not be struck off to an irrigation district and a county treasurer shall not issue a certificate of sale, certificate of purchase, or tax deed pursuant to this section or article 11 of title 39 to the extent such actions would be inconsistent with the requirements of article 11.5 of title 39.

(5) No action for possession of or to quiet title to land sold for taxes shall lie on behalf of the owner or claimant of the fee title as against the holder of the tax deed or his grantee claiming title or color of title thereunder in any case wherein the taxes or any part thereof for which said land was sold were levied for the maintenance, operating, and current expenses of an irrigation district or to pay the interest or principal of the bonds of such district, unless such action is brought within five years after the execution and delivery of the deed by the treasurer and the recording thereof, any law to the contrary notwithstanding. As a condition precedent to the right of such owner or claimant of the fee title to maintain his said suit for possession or to quiet title as against the person in possession under color of title, or as against the claimant of title to vacant and unoccupied land under a tax deed giving color of title to lands in an irrigation district, the plaintiff, at the time of filing his complaint, shall pay to the clerk of the court in which such proceedings are instituted, for the benefit of and to be paid to the person entitled thereto in case the plaintiff prevails in such suit, the amount of all taxes, interest, expenses, and penalties, including the amount of subsequent taxes paid on account of such sale which may have been paid thereunder, with interest on the whole of such sum at eight percent per annum.

(6) In any case in which the claimant has title or color of title to land in an irrigation district under a tax deed duly recorded, and brings his suit for possession of or to quiet title to such lands, the invalidity or alleged invalidity or insufficiency of the tax deed shall not be a sufficient defense after the expiration of five years from and after the execution, delivery, and record of said tax deed, nor, if such defense is pleaded prior to the expiration of said five years, shall the invalidity or insufficiency of the tax deed be considered by the court as a defense, unless defendant shall first deposit with the clerk of the court in which said suit is brought, a sufficient amount to pay the taxes, interest, expenses, and penalties, including the amount of subsequent taxes and interest at eight percent per annum, paid on account of such tax sale, for the benefit of and to be paid to the person entitled thereto, when ascertained by the judgment in said suit.

Source: L. 05: p. 262, § 22. R.S. 08: § 3461. L. 15: p. 315, § 1. C.L. § 1999. CSA: C. 399, CRS 53: § 149-1-23. C.R.S. 1963: § 150-1-23. L. 2024: (1), (2), (3), and (4) amended and (4.5) added, (HB 24-1056), ch. 165, p. 805, § 12, effective July 1.

ANNOTATION

This section is not authority for the registration of interest coupons like county warrants, if there are no funds to discharge them. Thomas v. Patterson, 61 Colo. 547, 159 P. 34 (1916).

Lands sold to the county for taxes are excepted from the provisions of this section. Such lands are not to be sold at all for taxes until by redemption or sale the county is made whole. Henrylyn Irrigation Dist. v. Patterson, 65 Colo. 385, 176 P. 493 (1918).

This section calls for a construction which creates a lien by necessary implication without express language to that effect. Thomas v. Patterson, 61 Colo. 547, 159 P. 34 (1916).

This section was evidently for the purpose of assisting counties to secure purchasers at tax sales for lands in irrigation districts, in order to better enable not only the state and counties, but such districts, to secure their taxes, so that their affairs may not be crippled by the failure of landowners to pay them. Delta Land & Orchard Co. v. Zaninetti, 64 Colo. 268, 170 P. 964 (1918).

A purchaser at a tax sale, of lands included within an irrigation district, may pay therefor in part with bonds and warrants of the district, under the provisions of § 37-41-109. Tew v. Phillips, 73 Colo. 408, 216 P. 525 (1923).

The provisions of this section are written into a contract of tenancy and the tenant is bound thereby. Pendleton v. Mosca Irrigation Dist., 89 Colo. 209, 1 P.2d 99 (1931).

The landlord cannot, by the simple device of a long-term lease, either evade the payment of the tax during the term or deprive the holder of the tax deed of the rights accorded him by this section. Pendleton v. Mosca Irrigation Dist., 89 Colo. 209, 1 P.2d 99 (1931).

In an action in ejectment by an irrigation district based on tax deeds, defendant could not assert the invalidity of the tax deeds as a defense if he failed and refused to tender and deposit with the clerk of the court money to pay taxes, etc., under this section. Pendleton v. Mosca Irrigation Dist., 89 Colo. 209, 1 P.2d 99 (1931).

There is nothing in this section which gives the holder of a tax deed to vacant and unoccupied land any enlarged or other or different rights or remedies in a suit to quiet title under a tax deed than obtain generally. Gibson v. Interior Realty & Inv. Co., 70 Colo. 5, 201 P. 680 (1921).

The purport and effect of the provision is merely to limit the rights of the fee holder as to the circumstances and conditions under which he may make a defense. Gibson v. Interior Realty & Inv. Co., 70 Colo. 5, 201 P. 680 (1921).

Owner must pay tax title claimant amount for which lands were sold with interest. This section extends the substance of the equitable doctrine that, as a prerequisite to a recovery of lands by the owner against one claiming under an invalid tax deed, he must pay the tax title claimant the amount for which the lands were sold, with interest, etc., to suits by tax deed claimants for possession of lands in irrigation districts, by providing that before the owner can question the validity or regularity of the tax deed, he must pay the amount of the taxes, etc. Delta Land & Orchard Co. v. Zaninetti, 64 Colo. 268, 170 P. 964 (1918).

In an action for the recovery of lands in an irrigation district under a tax deed, judgment may, under this section, be given so that defendant may, within a time limited, pay into court the tax and interest evidenced by the deed, and the cost of its execution and record, and that in default of such payment plaintiff is declared the owner of the land and entitled to possession even though the deed is void upon its face. Delta Land & Orchard Co. v. Zaninetti, 64 Colo. 268, 170 P. 964 (1918).