Personal Property Assessment

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

CLASSIFICATION

FILING

VALUATION

APPEALS

Q & A

BPPT CALENDAR Jan. 1: Assessment & Lien Date

Apr. 15: DS Filing Deadline

Jun. 15: NOV Deadline

Jun. 30: PP Protest Deadline (Postmark / Walk-in)

Jul. 10: PP NOD Deadline

BPPT CALENDAR Jul. 20: PP CBOE Appeal Deadline

Aug. 5: PP CBOE Decision Deadline

(30 days)

By Aug. 25: Assessor Reports Assessed

Values to taxing entities

By Dec. 10: Assessor Reports Amended

Assessed Values

By Jan. 10: Assessor delivers warrantPer § 39-5-129, C.R.S.

CLASSIFICATION

Real or Personal

Taxable or Exempt

REAL PROPERTY is:

• Land• Water Rights• Fixtures• Fences• Mines• Quarries• Mineral Interests• and Improvements

Per § 39-1-102(6.3) and (14), C.R.S.

CLASSIFICATION

FIXTURES include:

Heating Air Conditioning Ventilation Sanitation Lighting and Plumbing Systems

Per § 39-1-102(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 § 39-1-102(11), C.R.S.

CLASSIFICATION

“Personal Property” Includes:

• Machinery• Equipment• Other Articles Related to Operation• Pipeline• Telecommunications, Utility, TV Line

Per § 39-1-102(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.

Section § 39-1-102(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 AllPersonal Property Owned by:

• State

• Counties

• Cities

• Towns

• Other Municipal Corporations

CLASSIFICATION

United States is Exempt from All Taxes Imposed by

the State of Colorado, Including Property Taxes.

Section 4 of Enabling Act, 1876

CLASSIFICATIONColorado Constitution Exempts All PersonalProperty Owned by:

Public Libraries

Political Subdivisions of the State Including: School Districts and Special Districts

CLASSIFICATION 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

• School District

• County

FILING

As Soon After January 1 Assessment Date as possible, the Assessor Mails or Delivers a Copy of the DS Form

Section 39-5-108, C.R.S

Filed by April 15 & N.O.V. Out by June 15

FILINGItemized List of All Personal Property Owned by

Them, in Their Possession, or Under TheirControl 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

Recorded Documents & Other Sources

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…”

(c) may consider the market approach or income approach, when such considerations would result in a lower value.

39-1-103 (13), C.R.S.

Personal Property Taxation

APPEALS

ADDITIONAL INFORMATION

See the Division of Property Taxation Web Site for Manual,

Form, Legislative and other Property Taxation Updates at: www.dola.colorado.gov/dpt

If you have any additional questions or concerns regarding

these materials and/or the related personal property discussion, please contact Ken Beazer at (303) 866-2790.