Personal Property Assessment CO DEPT OF LOCAL AFFAIRS Division of Property Taxation Presenter: Ken Beazer For the Colorado County Treasurers’ Association DATE: 12/10/10

PRESENTATION TOPICS BPPT CALENDAR BPPT CALENDAR CLASSIFICATION CLASSIFICATION FILING FILING VALUATION VALUATION APPEALS APPEALS Q & A Q & A

BPPT CALENDAR Jan. 1:Assessment & Lien Date Jan. 1:Assessment & Lien Date Apr. 15:DS Filing Deadline Apr. 15:DS Filing Deadline Jun. 15:NOV Deadline Jun. 15:NOV Deadline Jun. 30:PP Protest Deadline (Postmark / Walk-in) Jun. 30:PP Protest Deadline (Postmark / Walk-in) Jul. 10:PP NOD Deadline Jul. 10:PP NOD Deadline

BPPT CALENDAR Jul. 20:PP CBOE Appeal Deadline Jul. 20:PP CBOE Appeal Deadline Aug. 5:PP CBOE Decision Deadline (30 days) Aug. 5:PP CBOE Decision Deadline (30 days) By Aug. 25: Assessor Reports Assessed Values to taxing entities By Aug. 25: Assessor Reports Assessed Values to taxing entities By Dec. 10: Assessor Reports Amended Assessed Values By Dec. 10: Assessor Reports Amended Assessed Values By Jan. 10: Assessor delivers warrant Per § , C.R.S. By Jan. 10: Assessor delivers warrant Per § , C.R.S.

CLASSIFICATION Real or Personal Taxable or Exempt

REAL PROPERTY is: Land Land Water Rights Water Rights Fixtures Fixtures Fences Fences Mines Mines Quarries Quarries Mineral Interests Mineral Interests and Improvements and Improvements Per § (6.3) and (14), C.R.S. CLASSIFICATION

FIXTURES include: Heating Heating Air Conditioning Air Conditioning Ventilation Ventilation Sanitation Sanitation Lighting Lighting and Plumbing Systems and Plumbing Systems Per § (4), C.R.S. CLASSIFICATION

“Personal Property” Means: Everything That is the Subject of Ownership and That is Not Included in the Term “Real Property”. Per § (11), C.R.S. CLASSIFICATION

“Personal Property” Includes: Machinery Machinery Equipment Equipment Other Articles Related to Operation Other Articles Related to Operation Pipeline Pipeline Telecommunications, Utility, TV Line Telecommunications, Utility, TV Line Per § (11), C.R.S. CLASSIFICATION

Del Mesa Farms, et al. v. Montrose CBOE, 956 P.2d 661 (Colo. App. 1998) “…Thus, in our view, regardless of whether a particular item is affixed to a building and may otherwise constitute a fixture system, the item constitutes personal property if its use is primarily tied to a business operation…(emphasis added)” CLASSIFICATION

Taxable Property’ Means: All property, real and personal, not expressly exempted from taxation by law. All property, real and personal, not expressly exempted from taxation by law. Section § (16), C.R.S. CLASSIFICATION * All Property in the State is Taxable Unless Specifically Exempt by the Colorado Constitution.

Some Property Exemptions Include: 1. Agricultural and Livestock Products 2. Agricultural Equipment Used on a Farm or Ranch 3. Residential Household Furnishings 4. Intangible Personal Property 5. Inventories of Merchandise and Materials and Supplies Held for Sale or Consumption by a Business (includes: $250 Consumable and 30-day or less rental exemptions) CLASSIFICATION

Additional Property Exemptions Include: 6. Business PP Not as Yet in Use 7. PP of $5,500 Actual Value or Less 8. Personal Effects 9. Works of Art 10. Charitable and Religious Purpose Property CLASSIFICATION

Colorado Constitution Exempts All Personal Property Owned by: State State Counties Counties Cities Cities Towns Towns Other Municipal Corporations Other Municipal CorporationsCLASSIFICATION

United States is Exempt from All Taxes Imposed by the State of Colorado, Including Property Taxes. Section 4 of Enabling Act, 1876 United States is Exempt from All Taxes Imposed by the State of Colorado, Including Property Taxes. Section 4 of Enabling Act, 1876CLASSIFICATION Colorado Constitution Exempts All Personal Property Owned by: Public Libraries Public Libraries Political Subdivisions of the State Including: School Districts and Special Districts Political Subdivisions of the State Including: School Districts and Special Districts

CLASSIFICATION Private PP Leased to Public Entities Exempt if: Private PP Leased to Public Entities Exempt if: - Used by the State or Political Subdivision - Acquired for No Cost or Nominal Consideration at the End of the Agreement. Municipality – City or Town Municipality – City or Town School District School District County County

FILING As Soon After January 1 Assessment Date as possible, the Assessor Mails or Delivers a Copy of the DS Form Section , C.R.S As Soon After January 1 Assessment Date as possible, the Assessor Mails or Delivers a Copy of the DS Form Section , C.R.S Filed by April 15 & N.O.V. Out by June 15 Filed by April 15 & N.O.V. Out by June 15

FILING Itemized List of All Personal Property Owned by Them, in Their Possession, or Under Their Control on the Assessment Date. 1.Whether Property is New or Used (Year of Manufacture, if Known) 2.Year Acquired, and Cost Data 3.Market and Income Data (if Available) 4.Apportionment Data 5.Proration Data

FILING Declaration Schedule Declaration Schedule Recorded Documents & Other Sources Recorded Documents & Other Sources Physical Inspection Physical Inspection

20 “PHYSICAL INSPECTIONS” The Assessor Standing Firmly Behind Their Staff

* Auditing Analyses * 1. Office Review 2. Physical Inspection 3. Examination of Accounting Books and Records FILING

VALUATION * Actual Value * Determined by Appropriate Consideration of the Three Approaches to Value: 1. Cost Approach * RCN - Accrued Deprec. * LOV = Indicated Value

VALUATION * Actual Value * Determined by Appropriate Consideration of the Three Approaches to Value: 2. Sales Comparison (Market) Approach * Comparable +/- Adjustments = Indicated Value

VALUATION * Actual Value * Determined by Appropriate Consideration of the Three Approaches to Value: 3. Income Approach * Income -:- Rate = Indicated Value

(13) (a)“…the cost approach shall establish the maximum value if all costs incurred in the acquisition and installation are fully and completely disclosed…” (13) (a)“…the cost approach shall establish the maximum value if all costs incurred in the acquisition and installation are fully and completely disclosed…” (c) may consider the market approach or income approach, when such considerations would result in a lower value (13), C.R.S. Personal Property Taxation

APPEALS

ADDITIONAL INFORMATION See the Division of Property Taxation Web Site for Manual, l See the Division of Property Taxation Web Site for Manual, Form, Legislative and other Property Taxation Updates at: If you have any additional questions or concerns regarding these materials and/or the related personal property discussion, please contact Ken Beazer at (303) l If you have any additional questions or concerns regarding these materials and/or the related personal property discussion, please contact Ken Beazer at (303)