Colorado § 39-1-101 - Legislative declaration.

§ 39-1-101. Legislative declaration.

The general assembly declares that its purpose in enacting articles 1 to 13 of this title is to exercise the authority granted in section 3 of article X of the state constitution wherein it is provided, among other things, that "the actual value of all real and personal property not exempt from taxation under this article shall be determined under general laws, which shall prescribe such methods and regulations as shall secure just and equalized valuations for assessment of all real and personal property not exempt from taxation under this article". It further declares that it intends to fix the percentage of such determined actual value at which all such property shall be assessed for taxation. It further declares that the actual value of certain classes of real property may not be able to be determined after appropriate consideration of the three approaches to value; therefore, it is incumbent upon the general assembly to provide for a means to determine the actual value of such taxable property, and, to effect this result, the general assembly hereby finds and declares that, when appropriate consideration of the three approaches to value fails to derive an actual value for such property, the actual value of such property shall be determined by comparison of the surface use of such property to property with a similar surface use. It further declares that the actual value of nonproducing oil, gas, and oil and gas mineral interests shall be determined by the income approach capitalizing annual net rental income at an appropriate market rate. To these ends, the provisions of said articles shall be strictly construed.

Source: L. 64: R&RE, p. 675, § 1. C.R.S. 1963: § 137-1-2. L. 83: Entire section amended, p. 1480, § 1, effective April 22. L. 85: Entire section amended, p. 1209, § 1, effective May 9.

ANNOTATION

This article does not require an assessor to reevaluate real property when an unusual condition occurs in the middle of a tax year. Larimer County BOE v. 1303 Frontage, 2023 CO 28, 531 P.3d 1012.

"Actual value" of residential property must be determined using means and methods applied impartially to all the members of each class, in order to reconcile the requirement of article X, § 20, of the constitution that the market approach be used for valuation with the equalization requirement of article X, § 3. Podoll v. Arapahoe County Bd. of Equaliz., 920 P.2d 861 (Colo. App. 1995), rev'd on other grounds, 935 P.2d 14 (Colo. 1997).

Statute does not prohibit general assembly from adopting other statutes concerning imposition of property taxes. Senior Corp. v. Bd. of Assessment Appeals, 702 P.2d 732 (Colo. 1985).

Reclassification from residential to commercial property was just and equal where property was used as a community center in a planned community development despite fact that model homes used for commercial purposes in same county are classified as residential. Mission Viejo v. Douglas Cty. Bd. of Equaliz., 881 P.2d 462 (Colo. App. 1994).

Valuation was not just and equal where county could offer no reasonable explanation why there was a 32.8% increase in the assessed value of plaintiffs' residences but only a 10.73% average increase as to the vast majority of comparable residences. Podoll v. Arapahoe County Bd. of Equaliz., 920 P.2d 861 (Colo. App. 1995), rev'd on other grounds, 935 P.2d 14 (Colo. 1997).

In determining whether a valuation for assessment is just and equal under the "designed for use" standard, actual use is only one factor to be considered. Mission Viejo v. Douglas Cty. Bd. of Equaliz., 881 P.2d 462 (Colo. App. 1994).

Applied in City & County of Denver v. Sec. Life & Accident Co., 173 Colo. 248, 477 P.2d 369 (1970).