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Personal Property Assessment

CO DEPT OF LOCAL AFFAIRS Division of Property Taxation. Personal Property Assessment. DATE: 12/10/10 . Presenter: Ken Beazer For the Colorado County Treasurers’ Association . PRESENTATION TOPICS. BPPT CALENDAR CLASSIFICATION FILING VALUATION APPEALS Q & A. BPPT CALENDAR.

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Personal Property Assessment

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

  2. PRESENTATION TOPICS • BPPT CALENDAR • CLASSIFICATION • FILING • VALUATION • APPEALS • Q & A

  3. 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

  4. 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 warrant Per § 39-5-129, C.R.S.

  5. CLASSIFICATION • Real or Personal • Taxable or Exempt

  6. CLASSIFICATION 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.

  7. CLASSIFICATION FIXTURES include: • Heating • Air Conditioning • Ventilation • Sanitation • Lighting • and Plumbing Systems Per § 39-1-102(4), C.R.S.

  8. 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.

  9. CLASSIFICATION “Personal Property” Includes: • Machinery • Equipment • Other Articles Related to Operation • Pipeline • Telecommunications, Utility, TV Line Per § 39-1-102(11), C.R.S.

  10. 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)”

  11. CLASSIFICATION Taxable Property’ Means: All property, real and personal, not expressly exempted from taxation by law. Section § 39-1-102(16), C.R.S. * All Property in the State is Taxable Unless Specifically Exempt by the Colorado Constitution.

  12. CLASSIFICATION 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)

  13. 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

  14. CLASSIFICATION Colorado Constitution Exempts All Personal Property Owned by: • State • Counties • Cities • Towns • Other Municipal Corporations

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

  16. 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 • County • School District

  17. 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

  18. FILING Itemized 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

  19. FILING • Declaration Schedule • Recorded Documents & Other Sources • Physical Inspection

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

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

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

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

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

  25. Personal Property Taxation (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.

  26. APPEALS

  27. 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.

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