Colorado § 39-2-117 - Applications for exemption - review - annual reports - procedures - rules - definition.

§ 39-2-117. Applications for exemption - review - annual reports - procedures - rules - definition.

(1) (a) (I) Every application filed on or after January 1, 1990, claiming initial exemption of real and personal property from general taxation pursuant to the provisions of sections 39-3-106 to 39-3-113.5, 39-3-116, and 39-3-127.7 must be made on forms prescribed and furnished by the administrator, must contain such information as specified in subsection (1)(b) of this section, and must be signed by the owner of such property or the owner's authorized agent under the penalty of perjury in the second degree and, except as otherwise provided in this subsection (1)(a), must be accompanied by a payment of two hundred dollars, adjusted for inflation or deflation, which must be credited to the property tax exemption fund created in subsection (8) of this section. The administrator shall examine and review each application submitted, and, if it is determined that the exemption therein claimed is justified and in accordance with the intent of the law, the exemption must be granted, the same to be effective upon such date in the year of application as the administrator shall determine, but the exemption shall not apply to any year prior to the year preceding the year in which application is made. The decision of the administrator must be issued in writing and a copy thereof furnished to the applicant and to the assessor, treasurer, and board of county commissioners of the county in which the property is located.

(II) On all properties for which an application is pending in the office of the administrator, taxes shall not be due and payable until such determination has been made. Such property shall not be listed for the tax sale, and no delinquent interest will be charged on any portion of the exemption that is denied.

(III) No later than June 1 of each year, the administrator shall provide to the assessor, treasurer, and board of county commissioners of each county a list of all applications for property tax exemption currently pending in the office of the administrator.

(b) (I) Any users of real and personal property for which exemption from general taxation is requested pursuant to any of the provisions of sections 39-3-107 to 39-3-113.5 and 39-3-127.7 may be required to provide such information as the property tax administrator determines to be necessary. If a claim is made for an exemption under section 39-3-110, and the child care center is operated by a person other than the owner of the property, then the other person, or the other person's authorized agent, must:

(A) Also sign the owner's application form required by subsection (1)(a)(I) of this section, or any other form prescribed and furnished by the administrator, under the penalty of perjury in the second degree; and

(B) Provide the administrator with any requested information related to the exemption.

(II) Except as otherwise provided in this subsection (1)(b)(II), any application filed pursuant to subsection (1)(a) of this section claiming exemption from taxation pursuant to section 39-3-106 or 39-3-106.5 must contain the following information: The legal description and address of the real property or the address of the personal property being claimed as exempt; the name and address of the owner of such property; the name and telephone number of the agent of such property; the date the owner acquired such property; the date the owner commenced using the property for religious purposes; a complete list of all uses of the property other than by the owner thereof during the previous twelve months; the total amount of gross income specified in section 39-3-106.5 (1)(b)(I) and the total amount of gross rental income resulting to the owner of such property during the previous twelve months from uses for purposes other than the purposes specified in sections 39-3-106 to 39-3-113.5 and 39-3-127.7; and the total number of hours during the previous twelve months that such property was used for purposes other than the purposes specified in sections 39-3-106 to 39-3-113.5 and 39-3-127.7. For purposes of this subsection (1)(b)(II), if the owner did not own the property being claimed as exempt during the entire twelve-month period prior to filing such application, the application must contain the required information for that portion of the twelve-month period for which such property was owned by the owner making application. Such application must also include a declaration that sets forth the religious mission and religious purposes of the owner of the property being claimed as exempt and the uses of such property that are in the furtherance of such mission and purposes. Such declaration must be presumptive as to the religious purposes for which such property is used. If the administrator is unable to determine whether the property qualifies for exemption based solely on the information specified in this subsection (1)(b)(II), the administrator may require additional information, but only to the extent that the additional information is necessary to determine the exemption status of the property. The administrator may challenge any declaration included in the application only upon the grounds that the religious mission and purposes are not religious beliefs sincerely held by the owner of such property, that the property being claimed as exempt is not actually used for the purposes set forth in such application, or that the property being claimed as exempt is used for private gain or corporate profit.

(III) Any application filed pursuant to paragraph (a) of this subsection (1) claiming exemption from taxation pursuant to section 39-3-116 shall contain such information specified in subparagraphs (I) and (II) of this paragraph (b) as is applicable for the purposes for which such property is used.

(2) No assessor shall classify any real or personal property as being exempt from taxation pursuant to the provisions of sections 39-3-106 to 39-3-113.5, 39-3-116, or 39-3-127.7 in any year unless the application for exemption for the current year has been reviewed and has been granted as provided for by law, nor shall any assessor classify any real or personal property as being taxable after having been notified in writing that such property has been determined to be exempt from taxation by the property tax administrator.

(3) (a) (I) On and after January 1, 1990, and no later than April 15 of each year, every owner of real or personal property for which exemption from general taxation has previously been granted shall file a report with the administrator upon forms furnished by the division, containing such information relative to the exempt property as specified in subsection (3)(b) of this section, and signed under the penalty of perjury in the second degree. Each such annual report must be accompanied by a payment of one hundred ten dollars, adjusted for inflation or deflation, which must be credited to the property tax exemption fund created in subsection (8) of this section. Each such annual report filed later than April 15, but prior to July 1, must be accompanied by a late filing fee of three hundred dollars, adjusted for inflation or deflation; except that the administrator has the authority to waive all or a portion of the late filing fee for good cause shown as determined by the administrator by rules adopted pursuant to subsection (7) of this section. On and after January 1, 1990, every owner of real or personal property for which exemption from general taxation has previously been granted pursuant to the provisions of section 39-3-111 and that is used for any purpose other than the purposes specified in sections 39-3-106 to 39-3-113.5 and 39-3-127.7 for less than two hundred eight hours during the calendar year or if the use of the property for such purposes results in annual gross rental income to such owner of less than twenty-five thousand dollars must not be required to file any annual report pursuant to the provisions of this subsection (3). In order to claim such exemption, in lieu of such annual report, the owner shall annually file with the administrator a declaration stating that the property is used for such purposes for less than two hundred eight hours during the calendar year or that such use results in annual gross rental income to the owner of less than twenty-five thousand dollars.

(II) In the event an annual report is not received by June 1 from an owner of real or personal property for which an exemption was granted for the previous year pursuant to the provisions of sections 39-3-107 to 39-3-113.5, 39-3-116, or 39-3-127.7, the administrator shall give notice in writing to such property owner by June 15 that failure to comply by July 1 operates as a forfeiture of any right to claim exemption of previously exempt property from general taxation for the current year. Failure to timely file such annual report on or before July 1 operates as a forfeiture of any right to claim exemption of such property from general taxation for the year in which such failure occurs, unless an application is timely filed and an exemption granted pursuant to the provisions of subsection (1)(a) of this section. The administrator shall review each report filed to determine if such property continues to qualify for exemption, and, if it is determined that the property does not so qualify, the owner of such property must be notified in writing of the disqualification, and the assessor, treasurer, and board of county commissioners of the county in which the property is located must also be so notified.

(III) If an annual report is not received by June 1 from an owner of real or personal property for which an exemption was granted for the previous year pursuant to the provisions of section 39-3-106 or 39-3-106.5, the administrator shall give notice in writing to such property owner by June 15 that failure to file a delinquent report during a twelve-month period commencing the following July 1 shall operate as the forfeiture of any right to claim exemption of previously exempt property from general taxation for the year in which such notice is given. Upon the filing of the delinquent annual report, a late filing fee of three hundred dollars, adjusted for inflation or deflation, shall be paid, which must be credited to the property tax exemption fund created in subsection (8) of this section; except that the administrator has the authority to waive all or a portion of the late filing fee for good cause shown as determined by the administrator by rules adopted pursuant to subsection (7) of this section. Failure to file the delinquent annual report within the twelve-month period shall result in the forfeiture of any right to claim exemption of such property from general taxation for the year in which such failure to file the annual report first occurred. The administrator shall review each report filed to determine if the property continues to qualify for exemption, and, if it is determined that the property does not so qualify, the owner of the property shall be notified in writing of the disqualification, and the assessor, treasurer, and board of county commissioners of the county in which the property is located shall also be so notified.

(b) (I) Any user of property which has been exempted pursuant to the provisions of sections 39-3-107 to 39-3-113.5 and 39-3-127.7 may be required to provide such information as the property tax administrator determines to be necessary in order to ascertain whether the users and usages of the property are in compliance with the provisions of said sections.

(II) (A) Except as otherwise provided in subsection (3)(b)(II)(B) of this section, any annual report filed pursuant to subsection (3)(a) of this section claiming exemption from taxation pursuant to section 39-3-106 or 39-3-106.5 must contain the following information: The legal description or address of the property being claimed as exempt; the name and address of the owner of such property; a complete list of all uses of such property other than by the owner thereof during the previous calendar year; the amount of total gross income specified in section 39-3-106.5 (1)(b)(I) and the total amount of gross rental income resulting from uses of such property that are not for the purposes set forth in sections 39-3-106 to 39-3-113.5 and 39-3-127.7; and the total number of hours that such property was used for purposes other than the purposes specified in sections 39-3-106 to 39-3-113.5 and 39-3-127.7. Such annual report must also include a declaration of the religious mission and purposes of the owner of such property claimed as being exempt and the uses of such property that are in the furtherance of such mission and purposes. Such declaration is presumptive as to the religious mission and religious purposes of the owner of such property. If the administrator is unable to determine whether the property continues to qualify for exemption based solely on the information specified in this subsection (3)(b)(II), the administrator may require additional information, but only to the extent that the additional information is necessary to determine the exemption status of the property. The administrator may challenge any declaration included in such annual report only upon the grounds that the religious mission and purposes are not religious beliefs sincerely held by the owner of such property, that such property is not actually used for the purposes set forth in the annual report, or that the property being claimed as exempt is used for private gain or corporate profit.

(B) For the purposes of sub-subparagraph (A) of this subparagraph (II), if the owner of property being claimed as exempt did not own such property during the entire previous calendar year, the annual report filed by such owner shall contain the information required in sub-subparagraph (A) of this subparagraph (II) for that portion of the previous calendar year during which such property was owned by such owner.

(III) Any annual report filed pursuant to paragraph (a) of this subsection (3) claiming exemption from taxation pursuant to section 39-3-116 shall contain such information specified in subparagraphs (I) and (II) of this paragraph (b) as is applicable for the purposes for which such property is used.

(4) If, subsequent to the time that exemption of any property was initially granted or annually renewed, as provided in subsections (1) and (3) of this section, it is determined that such exemption was granted or renewed as the result of false or misleading information contained in the initial application, the annual report, or any false information provided by owners or users of such property, then the property tax administrator shall revoke the exemption, and taxes shall be assessed against such property for the year or years affected by such false or misleading information, and all delinquent interest provided by law shall apply to such taxes.

(5) (a) (I) If the administrator tentatively determines that the property does not so qualify, except for the disqualification for failure to file an annual report required in subsection (3) of this section, he shall notify, by certified mail, the owner of such property of his tentative determination. The administrator shall also notify the owner of the owner's right to a public hearing, as provided for in subparagraph (II) of this paragraph (a).

(II) Within thirty days after the issuance of a tentative determination, the owner may request a public hearing regarding the determination. Upon the making of such a request, the administrator or his designees shall provide said owner with a public hearing at which said owner and any users of the property other than the owner, if their use is relevant to the determination of whether the property is exempt, shall be heard if they so desire. Such hearing shall be held no later than ninety days following the issuance of the tentative determination.

(III) Upon the conclusion of such hearing, the administrator shall provide the owner and any users sixty days within which to comply, so as to retain the exemption. If the owner fails to comply within sixty days, the administrator shall notify the owner in writing that the property has been disqualified.

(IV) The owner may waive his right to a public hearing by filing with the administrator a written statement that said right is waived. Upon receipt of such waiver, the administrator shall issue a final determination, in writing, which notifies the owner that the property does not qualify for exemption.

(V) If the owner does not request a public hearing, as provided for in subparagraph (II) of this paragraph (a), or does not file a waiver of his right to a public hearing, as provided for in subparagraph (IV) of this paragraph (a), the administrator shall provide the owner sixty days from the issuance of the tentative determination to file any additional information relevant to the determination of whether the property is exempt. At the conclusion of such sixty-day period, the administrator shall issue a final determination, in writing, which notifies the owner whether the property qualifies for exemption.

(b) An appeal from any decision of the administrator may be taken by the board of county commissioners of the county wherein such property is located, or by any owner of taxable property in such county, or by the owner of the property for which exemption is claimed if exemption has been denied or revoked in full or in part. Any such appeal shall be taken to the board of assessment appeals pursuant to the provisions of section 39-2-125 no later than thirty days following the decision of the administrator.

(6) If the decision of the board is against the petitioner, the petitioner may petition the court of appeals for judicial review thereof according to the Colorado appellate rules and the provisions of section 24-4-106 (11), C.R.S. If the decision of the board is against the respondent, the respondent, upon the recommendation of the board that it is a matter of statewide concern, may petition the court of appeals for judicial review according to the Colorado appellate rules and the provisions of section 24-4-106 (11), C.R.S.

(7) The administrator shall adopt rules to implement the provisions of this section pursuant to the provisions of article 4 of title 24, C.R.S., including any rules necessary to specify what shall qualify as "good cause shown" for purposes of waiving all or a portion of the late filing fees specified in subparagraphs (I) and (III) of paragraph (a) of subsection (3) of this section.

(8) All fees collected pursuant to this section shall be transmitted to the state treasurer who shall credit such revenues to the property tax exemption fund, which fund is hereby created in the state treasury. The moneys in the fund shall be subject to annual appropriation by the general assembly for the direct and indirect costs of the administration of this article.

(9) (a) As used in this section, "inflation or deflation" means the annual percentage change in the United States department of labor's bureau of labor statistics consumer price index, or a successor index, for Denver-Aurora-Lakewood for all items paid by urban consumers.

(b) The administrator shall annually adjust for inflation or deflation the fees required by subsections (1)(a)(I), (3)(a)(I), and (3)(a)(III) of this section. The administrator shall round the adjusted amount upward or downward to the nearest five dollars.

Source: L. 70: R&RE, p. 374, § 1. C.R.S. 1963: § 137-3-17. L. 72: p. 568, § 49. L. 83: (6) added, p. 2086, § 1, effective October 13. L. 86: (1) to (4) amended, p. 1104, § 2, effective May 16. L. 87: (1)(a), (3)(a), and (5) amended, pp. 1399, 1400, §§ 1, 2, effective July 1. L. 88: (1)(a) and (3)(a) amended, p. 1292, § 25, effective May 23. L. 89: (1), (2), and (3)(b) amended, p. 1482, § 6, effective April 23; (1) to (3) amended and (7) added, p. 1486, § 4, effective June 7. L. 90: (6) amended, p. 1689, § 6, effective June 9. L. 91: (1)(b)(II), (3)(b)(II), and (5)(a) amended, pp. 1960, 1955, §§ 7, 1, effective June 7. L. 92: (1)(a) and (4) amended, p. 2222, § 2, effective April 9. L. 2003: (1)(b)(II) and (3)(b)(II)(A) amended, p. 866, § 1, effective April 7; (1)(a), (3)(a)(I), (3)(a)(III), and (5)(b) amended and (8) added, p. 1465, § 3, effective July 1. L. 2009: (1)(a) amended, (SB 09-042), ch. 176, p. 780, § 2, effective August 5. L. 2010: (1)(a)(I), (3)(a)(I), (3)(a)(III), and (7) amended, (HB 10-1386), ch. 328, p. 1516, § 1, effective July 1. L. 2011: (3)(a)(I) amended, (HB 11-1010), ch. 275, p. 1239, § 1, effective August 10. L. 2013: (1)(a)(I), (1)(b)(I), (1)(b)(II), (2), (3)(a)(I), (3)(a)(II), (3)(b)(I), and (3)(b)(II)(A) amended, (HB 13-1300), ch. 316, p. 1700, § 117, effective August 7. L. 2022: (1)(b)(I) amended, (HB 22-1006), ch. 289, p. 2066, § 3, effective August 10. L. 2023: (1)(a)(I), IP(1)(b)(I), (1)(b)(II), (2), (3)(a)(I), (3)(a)(II), (3)(b)(I), and (3)(b)(II)(A) amended, (HB 23-1184), ch. 260, p. 1499, § 1, effective August 7. L. 2024: (1)(a)(I), (3)(a)(I), and (3)(a)(III) amended and (9) added, (HB 24-1411), ch. 82, p. 276, § 1, effective July 1.

Cross references: (1) For perjury in the second degree and the penalty therefor, see §§ 18-8-503 and 18-1.3-501.

(2) For the legislative declaration in HB 22-1006, see section 1 of chapter 289, Session Laws of Colorado 2022.

ANNOTATION

Law reviews. For article, "Property Tax Exemptions for Religious And Nonprofit Organizations", see 18 Colo. Law. 1939 (1989). For article, "Colorado State and Local Tax Exemptions for Charitable Organizations-Part I", see 28 Colo. Law. 57 (Nov. 1999). For article, "Affordable Housing Tax Exemptions in Colorado", see 54 Colo. Law. 32 (Dec. 2025).

Exemption from property tax is initiated at state level, rather than county level, by filing an application for exemption with the property tax administrator. West-Brandt Found., Inc. v. Carper, 199 Colo. 334, 608 P.2d 339 (1980).

Property tax exemptions are determined on an annual basis under the property tax scheme, based on the use of the property in each tax year. St. Mark Coptic Orthodox Church v. State Bd. of Assessment Appeals, 762 P.2d 775 (Colo. App. 1988); Pilgrim Rest Baptist Church, Inc. v. Prop. Tax Adm'r, 971 P.2d 270 (Colo. App. 1998).

Implicit within the property tax scheme is a requirement that in order for the property to qualify for tax exemption for that tax year, there must be at least some actual use of the property for tax exempt purposes in that tax year. Pilgrim Rest Baptist Church, Inc. v. Prop. Tax Adm'r, 971 P.2d 270 (Colo. App. 1998).

County not indispensable party in appeal of exemption denial. The county in which the affected property is located is not an indispensable party in an appeal to the state board of assessment appeals (board) of the property tax administrator's denial of exemption. West-Brandt Found., Inc. v. Carper, 199 Colo. 334, 608 P.2d 339 (1980).

The procedure for determining the running of the thirty-day period in this section prevails over § 24-4-105 which deals generally with administrative proceedings. Colo. Rocky Mtn. Sch., Inc. v. Shriver, 689 P.2d 651 (Colo. App. 1984).

The presumption in subsection (1)(b)(II) that stated uses were actually in furtherance of taxpayer's religious purposes applies throughout the application process, including at any stage of review. Grand County Bd. of Comm'rs v. Prop. Tax Adm'r, 2016 COA 2, 401 P.3d 561.

And the presumption applies to the board's review of the tax administrator's decision. Grand County Bd. of Comm'rs v. Prop. Tax Adm'r, 2016 COA 2, 401 P.3d 561.

Under subsection (6), only the district court in the county where the property is situated has subject matter jurisdiction over appeals of administrative decisions concerning exemptions. The district court in which the property was situated did not have subject matter jurisdiction over a case on appeal because Plaintiff did not timely perfect the review proceedings in said court. Instead, the complaint for review was filed in another district court which did not have subject matter jurisdiction and which attempted to transfer the case to the proper district court. Mile High United Way v. Assessment App., 801 P.2d 3 (Colo. App. 1990) (decided under law in effect prior to 1990 amendments).

Legislative grant of authority is granted to the administrator under the plain language of subsection (6) to seek review of adverse board decision concerning property tax years beginning on and after January 1, 1984. Maurer v. Young Life, 779 P.2d 1317 (Colo. 1989); Maurer v. Loyal Order of Moose Lodge, 779 P.2d 1345 (Colo. 1989); Maurer v. Denver Urban Economic Dev., 781 P.2d 111 (Colo. App. 1989).

Court of appeals has jurisdiction to hear a property owner's appeal from the board's determination. Giving consistent, harmonious, and sensible effect to the entire statutory scheme, subsection (6) must be applied to grant an applicant for tax exemption who receives a favorable ruling from the tax administrator and, therefore, does not petition for board review, the right to seek judicial review of an adverse decision of the board. Larimer County Bd. v. Prop. Tax Adm'r, 2013 COA 49M, 316 P.3d 60.

In finding that property owner is not entitled to a religious purposes exemption, except for chapels and religious activity center on its property, board did not apply proper legal standards and therefore erred as a matter of law. In its analysis, the board did not address property owner's declaration of religious purposes contained in its application, the effect of the declaration's presumed validity, or whether the presumption had been overcome. Because such declarations are presumptive with regard to the religious purposes for which property is used under subsection (1)(b)(II), the board erred as a matter of law. Larimer County Bd. v. Prop. Tax Adm'r, 2013 COA 49M, 316 P.3d 60.

The correct inquiry is set forth in this section and § 39-3-106. The tax administrator and then the board must review the property owner's application and evidence to determine whether the owner's use of the property is for a religious purpose, consistent with the owner's declaration of religious mission and purpose. Larimer County Bd. v. Prop. Tax Adm'r, 2013 COA 49M, 316 P.3d 60.

Board also did not apply correct legal standard and, therefore, erred as a matter of law in finding that property owner did not qualify for a charitable use exemption. Assuming that the board correctly applied § 39-3-106.5 to determine that the property owner exceeded the adjusted hours or gross rental income for non-exempt use to entitle it to fully exempt status, the board then should have considered whether the property owner was entitled to a partial charitable use exemption. Based on the record, the board also did not properly consider whether the property owner used the properties solely and exclusively for strictly charitable purposes. Accordingly, the board did not apply the proper legal standards when it found that the property owner did not qualify for a charitable use exemption. Larimer County Bd. v. Prop. Tax Adm'r, 2013 COA 49M, 316 P.3d 60.