Colorado § 39-3-107 - Property - not-for-profit schools - exemption.

§ 39-3-107. Property - not-for-profit schools - exemption.

Property, real and personal, which is owned and used solely and exclusively for schools which are not held or conducted for private or corporate profit shall be exempt from the levy and collection of property tax. No requirement shall be imposed that use of property which is otherwise exempt pursuant to the provisions of this section shall benefit the people of Colorado in order to qualify for said exemption. Any exemption claimed pursuant to the provisions of this section shall comply with the provisions of section 39-2-117.

Source: L. 89: Entire article R&RE, p. 1471, § 1, effective April 23. L. 90: Entire section amended, p. 1711, § 1, effective June 9.

Editor's note: This section is similar to former § 39-3-101 (1)(f) as it existed prior to 1989.

ANNOTATION

Annotator's note. Since § 39-3-107 is similar to § 39-3-101 (1)(f) as it existed prior to the 1989 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.

Validity of section upheld. The validity of this section exempting from taxation educational and charitable institutions is upheld on the ground that if they were not in existence their work would have to be carried on at the expense of the taxpayers. Kemp v. Pillar of Fire, 94 Colo. 41, 27 P.2d 1036 (1933); United Presbyterian Ass'n v. Bd. of County Comm'rs, 167 Colo. 485, 448 P.2d 967 (1968).

Educational and charitable exemptions upheld on grounds of benefit to citizens. An institution or nonprofit organization, either domestic or foreign, is entitled to the constitutional and statutory tax exemption if its property in this state is used solely and exclusively for schools or for strictly charitable purposes, thus relieving Colorado taxpayers of the burden and expense of providing such advantages to its citizens. Young Life Campaign v. Bd. of County Comm'rs, 134 Colo. 15, 300 P.2d 535 (1956).

Determination of exemption based on all proper and appropriate uses. Because the fundamental object of this section is to exempt school property used for educational purposes, the uses permissible must necessarily embrace all which are proper and appropriate to effect the objects of the institution claiming the benefits of the exemption. Bishop & Chapter of Cathedral of St. John the Evangelist v. Treasurer of Arapahoe County, 29 Colo. 143, 68 P. 272 (1901); Horton v. Fountain Valley Sch., 98 Colo. 480, 56 P.2d 933 (1936).

Use incident to main purpose insufficient to alter exempt status. A use incident to the main purpose for which the property is held is not enough to lose tax exemption. Occupation of part of school premises by a bishop and his family does not render the property subject to taxation so long as his dominant purpose in residing therein is to carry out the educational objects of the institution. Bishop & Chapter of Cathedral of St. John the Evangelist v. Treasurer of Arapahoe County, 29 Colo. 143, 68 P. 272 (1901).

Exemption unaffected by receipt of part tuition. The fact that some money is received from a few students as part payment for their tuition, board, and lodging does not, in the circumstances, deprive the property of its exempt character. Kemp v. Pillar of Fire, 94 Colo. 41, 27 P.2d 1036 (1933).