Colorado § 39-1-107 - Tax liens.

§ 39-1-107. Tax liens.

(1) The lien of general taxes for the current year, including taxes levied pursuant to section 39-5-132, shall attach to all taxable property, real and personal, at 12 noon on the assessment date.

(2) Taxes levied on real and personal property, together with any delinquent interest, advertising costs, and fees prescribed by law with respect to any such taxes as may have become delinquent, shall be a perpetual lien thereon, and such lien shall have priority over all other liens until such taxes, delinquent interest, advertising costs, and fees shall have been paid in full.

(3) Repealed.

(4) The property tax on a possessory interest in real or personal property that is exempt from taxation under this article shall be assessed to the holder of the possessory interest and collected in the same manner as property taxes assessed to owners of real or personal property; except that such property tax shall not become a lien against the property. When due, the property tax shall be a debt due from the holder of the possessory interest to the board of county commissioners for the county in which such property is located or to such other body as is authorized by law to levy property taxes, and shall be recoverable by such board or body by direct action in debt on behalf of each governmental entity for which a property tax levy has been made.

Source: L. 64: R&RE, p. 677, § 1. C.R.S. 1963: § 137-1-7. L. 67: p. 212, § 1. L. 75: (1) amended, p. 1462, § 1, effective January 1, 1976. L. 83: (3) repealed, p. 1485, § 11, effective April 22. L. 85: (1) amended, p. 1226, § 3, effective January 1, 1986. L. 89: (1) amended, p. 1482, § 5, effective April 23. L. 92: (2) amended, p. 2222, § 1, effective April 9. L. 2002: (4) added, p. 1008, § 3, effective August 7. L. 2016: (1) amended, (SB 16-189), ch. 210, p. 792, § 105, effective June 6.

Cross references: For receipts for taxes paid, see § 39-10-105; for the effect of issuance of certificate of taxes due, see § 39-10-115; for sale of tax liens, see article 11 of this title 39.

ANNOTATION

I. General Consideration.

II. The Tax Lien.

III. Priority of Tax Lien.

I. GENERAL CONSIDERATION.

Law reviews. For article, "Taxation of Estates Pending Probate", see 6 Dicta 15 (Apr. 1929). For article, "Federal and State Tax Liens: A Question of Priority", see 12 Colo. Law. 1967 (1983). For article, "An Introduction to Tax Liens", see 13 Colo. Law. 399 (1984). For article, "Survey of Colorado Tax Liens", see 14 Colo. Law. 1765 (1985). For article, "Taxation of Possessory Interests in Exempt Property Under S.B. 02-157", see 32 Colo. Law. 81 (Mar. 2003).

Annotator's note. The following annotations include cases decided under former provisions similar to this section.

Question of tax liens and their priority is for legislative determination. In the absence of legislative action so declaring, taxes are not a lien upon the property. People v. City & County of Denver, 85 Colo. 61, 273 P. 883 (1928).

Revenue statutes are to be construed in favor of the public. Gifford v. Callaway, 8 Colo. App. 359, 46 P. 626 (1896).

Applied in Bd. of Comm'rs v. Denver & S. L. R. R., 88 Colo. 14, 291 P. 1020 (1930).

II. THE TAX LIEN.

Lien effective upon assessment and levy. The tax lien provided does not become effective until the property is assessed and the taxes levied, at which time the theretofore inchoate lien relates back and attaches as of the date authorized for assessment. Wolf v. Antonoff, 161 Colo. 473, 423 P.2d 840 (1967).

Lien embraces only specific property levied upon. Chicago Bazaar Co. v. McNichols, 13 Colo. App. 154, 56 P. 672 (1899).

A tax lien against real property in one county may not be attached to an improvement upon real property in another county. When a motel which was subject to the plaintiff's tax lien on real property in Garfield County was dismantled and moved to the City and County of Denver, it became personal property which was no longer subject to such lien. Israel v. Rifle Econolodge Joint Venture, 793 P.2d 658 (Colo. App. 1990).

Except as to stocks in merchandise. The lien attaches to an entire stock in merchandise, through all its changes, so long as it remains in the hands of the person taxed. Chicago Bazaar Co. v. McNichols, 13 Colo. App. 154, 56 P. 672 (1899) (decided under former law).

Even stocks in merchandise held by trustee in bankruptcy. Lien covers the stock of merchandise and fixtures which subsequently came into the possession of the taxpayer's trustee in bankruptcy. De Laney v. City & County of Denver, 185 F.2d 246 (10th Cir. 1950) (decided under former law).

Statutory mode of collection must be pursued although tax deemed lien. If a specific mode is provided whereby the land may be sold to satisfy a tax lien, no suit in equity to enforce the sale can be maintained. The specific statutory mode of collection must be pursued. Montezuma Valley Water Supply Co. v. Bell, 20 Colo. 175, 36 P. 1102 (1894).

Lien upon land without regard to title. This section creates a lien upon real estate for the taxes assessed against it: the assessment and all subsequent proceedings down to and including the sale, are against the land without regard to title. Statton v. People ex rel. Burr, 18 Colo. App. 85, 70 P. 157 (1902).

This section and § 39-10-115 to be construed together. This section and § 39-10-115, concerning certificates of taxes due, should be construed together to mean simply that tax due on real property shall be a perpetual lien upon the real estate until paid or until the treasurer certifies payment. Burton v. City & County of Denver, 99 Colo. 207, 61 P.2d 856 (1936).

No law limits phrase "perpetual lien", or requires its foreclosure within a specified time on peril of its loss. Bd. of Comm'rs v. Denver & S. L. R. R., 88 Colo. 14, 291 P. 1020 (1930).

Lien on personalty not lost by issuance of tax receipt. Where the personal property in question continues the property of the taxpayer owing the tax and remains in the same jurisdiction, mere issuance of a tax receipt will not oust the lien of taxes, where the county treasurer failed to collect interest on taxes owed. People ex rel. King v. Myers, 16 Colo. App. 371, 65 P. 409 (1901).

Tax assessed for irrigation district is lien upon the land upon which it is levied. Weghorst v. Clark, 66 Colo. 535, 180 P. 742 (1919).

Prospect of future taxes not lien on property. The mere existence of a water and sanitation district and the prospect of taxes in the future was not a lien, encumbrance, or defect on the title to property. Edwards v. St. Paul Title Ins. Co., 39 Colo. App. 235, 563 P.2d 979 (1977).

City acquired an interest in the personal property prior to the date of the chapter 11 bankruptcy since the statute provides that a lien for ad valorem personal property taxes arises at 12 noon on the assessment date for the current year and such lien is a perpetual lien. Although the interest was an inchoate lien, the city was allowed to perfect it after the assessment date and thus have the lien relate back to the assessment date. Therefore the personal property taxes were a prepetition secured claim. In re W. States Distribs., Inc., 179 B.R. 666 (Bankr. D. Colo. 1995).

III. PRIORITY OF TAX LIEN.

Priority of tax liens by express provision. Although the general assembly has the power to declare that tax liens shall be preferred, it must do so by express provision. Otherwise, priority in time will determine. United States v. Elliott, 209 F. Supp. 374 (D. Colo. 1962).

Lien for taxes superior to all other liens. The lien of taxes attaches to the land without regard to title and, consequently, is superior to all other liens. Statton v. People ex rel. Burr, 18 Colo. App. 85, 70 P. 157 (1902).

No lien upon land for personal tax cuts off prior valid lien upon the land. Bd. of Comm'rs v. McDonald, 78 Colo. 519, 242 P. 682 (1926); United States v. Elliott, 209 F. Supp. 374 (D. Colo. 1962).

Priority of debt due United States federal question. Where the United States claims a priority, the priority of a lien for general taxes must be determined under federal law. United States v. Maes, 316 F. Supp. 1267 (D. Colo. 1969).

When county treasurer not indispensable party. The county treasurer who issued certificate of sale to tax sale purchaser is not an indispensable party to a proceeding challenging priority of lien of secured party in property sold at tax sale where he claims no interest in the property since the tax lien has been discharged and where complete relief can be afforded without his presence as a party. John Deere Indus. Equip. Co. v. Moorehead, 38 Colo. App. 220, 556 P.2d 91 (1976), rev'd on other grounds, 194 Colo. 398, 572 P.2d 1207 (1977).