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HomeMy WebLinkAboutR01-130 abatement of taxes for berry creek equestrian centerin Commissioner, y moved adoption of the foflo Resolution: BOARD OF COUNTY COMMISSIONERS COUNTY OF EAGLE, STATE OF COLORADO RESOLUTION NO. 2001 - 1,3e ABATEMENT OF TAXES FOR THE BERRY CREEK EQUESTRIAN CENTER SCHEDULE NUMBER R022036 (now R049766) and R028468 (now R049765) WHEREAS, the Berry Creek Equestrian Center is located on the Berry Creek 5` property which is owned by Eagle County as successor in interest to the Eagle County Recreation Authority, and; WHEREAS, there has been an Equestrian Center located on that property which had been leased to the Ranch at Berry Creek, Inc. and classified and valued as possessory interest property since 1995, and WHEREAS, the Lessee applied for an abatement of taxes in May of 1996 for the 1995 and 1996 tax years which abatement was tabled by the Board of County Commissioners and has not been resolved, and WHEREAS, the taxes payable from 1995 until and through 2000 are to be considered, FTlill WHEREAS, the legal status of possessory interest valuation and taxation was subject to litigation pending in the court of appeals and ultimately being resolved by the Colorado Supreme Court; and WHEREAS, that application for an abatement has never been determined, and WHEREAS, pursuant to Section 39 -10 -114, C.R.S. the assessor has made a report to the Board of County Commissioners that such taxes have been levied erroneously after a review of the management agreement and lease agreement. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO: THAT, the Board of County Commissioners hereby abates taxes for the possessory interest from 1995 to 2000 as reflected on schedule number R022036 (now R049766) and R028468 (now R049765). MOVED, READ AND ADOPTED by the Board of County Commissioners of the County of Eagle, State of Colorado, at its regular meeting held the day of N ATTEST: , n C QLnvA ©�i Clerk to the Board of County Commissioner UNTY OF EAGLE, STATE OF LORADO, By and Through Its ARD OF COUNTY COMMISSIONERS Tom C' Stone Commissi er Michael L. Gallagher Co Am M. Menconi Commissioner Commissioner seconded adoption of the foregoing resolution. The roll having been call , the vote was as follows: Commissioner Stone Commissioner Gallagher Commissioner Menconi This Resolution passed by d vote of the Board of County Commissioners of the County of Eagle, State of Colorado. �-J DATE: 10/10/2001 TO: Board of County Commissioners FROM: Mark Chapin, Eagle County Assessors office` , RE: Berry Creek Equestrian Center Abatement, schedule # R022036 and R028469. This memo follows the memo of July 3, 2001 regarding the possessory interest valuation assigned the above mentioned schedule numbers. The two properties are known as the Ranch at Berry Creek. The original operating agreement between the Eagle County Recreation Authority (ECRA) and The Ranch at Berry Creek Inc., was a management agreement, not a lease agreement as previously interpreted. In fact this agreement caused an employee /employer relationship, not a landlord /tenant relationship. Had the assessor's office been aware of the type of operating agreement, the possessory interest valuation would never have been assigned these parcels. The property would have remained 100 % exempt from taxation. At the first abatement hearing in November 1996 an abatement decision was tabled by the board of County Commissioners due to the pending Court of Appeal decision regarding the status of possessory interest valuation and taxation. I won't go through the entire history of possessory interest in this memo, howeverto summerize; The verdict in the Mesa Verde Co. v. Montezuma CBOE supported possessory interest valuation in government owned leased property. Legislation soon followed which expressly exempted possessory interest valuation. This legislation was challenged by Eagle County and several other Colorado counties as unconstitutional at the Colorado Supreme court. The counties prevailed. Based on the courts decision possessory interests remain taxable. However, in my opinion this abatement should be approved as submitted due to several factors outside of possessory interest issue. The petitioner was not allowed due process since the abatement decision was tabled by the county in 1996 and no action was taken on any of the subsequent years. The abatement should also be approved regarding exempt status. The real property is presently owned by the county and was previously owned by a political subdivision of the state. Both ownerships are exempt and preclude property taxation. Finally, with no possessory interest in the property, no tax should have been levied against the subject property. There is no basis in which to argue overvaluation since the property should have been exempt from taxation for all years in question. Pursuant to CRS 39 -10 -114 the subject properties should be abated for illegal and erroneous assessment for 1995, 1996, 1997, 1998, 1999 and 2000. For 1999 and 2000 the property has double assessed. All original, adjusted and abated taxes have been listed as follow: 1995 Original tax Adjusted Tax Abated Tax R022036 $192.70 $0 $192.70 y page 2 C I I I R028468 $13,010.54 $0 $13,010.54 1996 R022036 $ 180.30 $0 $180.30 R028468 $ 13,590.32 $0 $13,590.32 1997 P,022036 $192.70 $0 $192.70 R028468 $13,010.54 $0 $13,010.54 1998 R022036 $ 180.30 $0 $180.30 R028468 $ 13,590.32 $0 $13,590.32 1999 R049766 $226.02 $0 $226.02 R049765 $28,741.34 $0 $28,741.34 2000 R049766 $233.20 $0 $233.20 R049765 $29,392.60 $0 $29,392.60 Note: For the tax years 1999 and 2000 the schedule numbers were changed on the subject parcels from R022036 to R049766 and from R028468 to R049765. The classification on schedules R049765 and R049766 will be changed to exempt for the 2001 tax year. Two mobile homes were added to the tax roll for 1999 and 2000 as possessory interest property. The ownership is listed in the Eagle County Rec Authorities name. Both tax bills are sent to Ranch at Berry Creek and should be abated for the same reasons as the real property. 1999 M031405 $185.56 $0 $185.56 M031406 $185.56 $0 $185.56 2000 M031405 $189.76 $0 $189.76 M031406 $189.76 $0 $189.76