GENERAL ABATEMENT RULES

The first criterion in order to be eligible to file an abatement petition is ownership. Abatement petitions filed for any reason may be considered only for assessment years in which the taxpayer owned the property.

When a taxpayer takes ownership during an assessment year, the new owner of record has standing to file an abatement petition. If, however, the former owner filed a protest for the assessment year in question, the new owner has no standing to file an overvaluation petition.

1. Examples of typical abatement situations that can be approved include:
   1. Illegal assessment rate. (e.g. The property has been assessed as commercial when, in fact, the property is residential.)
   2. Illegal levy. (A property was assigned an incorrect tax district code and therefore an illegal mill levy was applied.)
   3. Assessor clerical errors such as data entry errors, computation errors, or incorrect data as it has direct impact on the valuation of improvements or land.
   4. Property which became exempt during the year. The tax is prorated based on the number of days the property was exempt from taxation; 39-3-130, 131, and 132 C.R.S.
   5. Improvement assessed to incorrect parcel. If the property was incorrectly assessed as improved residential property and the parcel is vacant, the assessment rate applied to the land is changed to reflect the correct assessment rate. (The change in rate may reduce or nullify an abatement.)
   6. Real or personal property that is on the tax roll twice (double assessment).
   7. Any errors that are discovered in a taxpayer’s reporting of property owned when filing the personal property declaration schedule.
   8. Taxpayer feels the valuation of his/her property is incorrect for the previous assessment year and no protest was filed during that given year.
   9. Overpayment of tax on destroyed or demolished property that was reported to the assessor prior to the levying of taxes; 39-5-117 C.R.S.
   10. Overpayment of prepaid tax of mobile homes that have been removed from the state; 39-5-205 C.R.S.
2. Examples of typical abatement situations that should be disapproved include:
   1. Best information available assessments on personal property; 39-5-118 C.R.S.
   2. Personal property that left the state and was not reported to the assessor prior to its leaving may not be prorated; the abatement should be disapproved; 39-5-117 C.R.S. Future years are illegal assessments.
   3. Property destroyed or demolished and not reported to the assessor prior to the levying of taxes may not be prorated; the abatement should be disapproved; 39-5-117 C.R.S. Future years are illegal assessments.
   4. Personal property that is no longer in use by the business is not prorated. If personal property was located in the county on the assessment date, the property is taxable for the entire calendar year unless it meets one of the above criteria for proration, i.e. destroyed or moved out of state. It is important to remember that if property is sold during the calendar year or is put into storage, the property remains taxable for the entire assessment year and an abatement should be disapproved. Property in storage remains on the tax roll until it is sold, removed from the state, or put into use as personal effects.
   5. Overvaluation petitions filed for years in which a protest was also filed are not approved. The law now precludes taxpayers from filing a protest and an abatement petition for the same assessment year; the petition should be disapproved; 39-10-114 (1)(a)(I)(D) C.R.S.
   6. Petitions filed more than one year after the date the taxes are due are not approved. Abatement or refund of taxes is limited to a maximum of twenty-four months after the date the taxes are attached, January 1.

INSTRUCTIONS FOR FILING AN ABATEMENT PETITION

The Abatement Process

The abatement process is required in order to change tax amounts after the tax roll is delivered to the treasurer. An abatement petition is filed to process either an abatement (cancellation or reduction ) of taxes due or a refund of taxes paid. The petition can only be filed for the past two tax years. The abatement process is necessary in order to correct illegal or erroneous value or tax and incorrect valuations.

Due Process

Through the abatement process, a taxpayer has an opportunity to challenge the validity of an assessment as established by the County Assessor’s Office. However, although the taxpayer has the right to file an abatement, approval is not automatic. The taxpayer should be prepared to present evidence that the value or tax is incorrect. In cases where the taxpayer feels his property has been overvalued, abatement action is barred if a protest was filed during the year for which an abatement is sought.
When an abatement petition is completed and presented to the Assessor’s Office, the Assessor makes a recommendation of approval or denial (in whole or in part) to the county commissioners. If the Assessor recommends denial of a petition, the county commissioners conduct a hearing on the petition at which both the Assessor and the taxpayer can present their positions to the Board.
If the petition is approved by the county commissioners and the amount requested is greater than $1000 in tax, per schedule per year, the petition is forwarded to the Property Tax Administrator for review to ensure that the approval of the petition is in conformity with statutes and case law.
The Administrator may approve the petition and return it to the county for processing, or the petition may be denied in whole or in part. If the county commissioners or the Administrator deny the petition, the taxpayer is notified in writing and provided information on further rights of appeal.

Completing An Abatement Petition Form

Please click here to see an “Example Abatement Petition.” Please fill in the blanks completely before submitting the petition to the Assessor’s Office. The petition needs to be filed in triplicate with original signatures. You may copy the original form as necessary. If you have any questions, please call the Assessor’s Office at 970-453-3480.

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WEST'S COLORADO REVISED STATUTES ANNOTATED
TITLE 39. TAXATION
PROPERTY TAX
GENERAL AND ADMINISTRATIVE
ARTICLE 1. GENERAL PROVISIONS
Current through all 1998 Second Regular Session laws

§ 39-1-113. Abatement and refund of taxes
(1) Except as otherwise provided in subsection (1.5) of this section, no decision on any petition regarding abatement or refund of taxes, as provided for in section 39-10-114, shall be made by the board of county commissioners unless a hearing is had thereon, at which hearing the assessor and the taxpayer shall have the opportunity to be present.

(1.5) Upon being authorized by the board of county commissioners, the assessor may review petitions for abatement or refund and settle by written mutual agreement any such petition for abatement or refund in an amount of one thousand dollars or less per tract, parcel, or lot of land or per schedule of personal property. Any abatement or refund agreed upon and settled pursuant to this subsection (1.5) shall not be subject to the requirements of subsection (1) of this section.

(1.7) Every petition for abatement or refund filed pursuant to section 39-10-114 shall be acted upon pursuant to the provisions of this section by the board of county commissioners or the assessor, as appropriate, within six months of the date of filing such petition.

(2)(a) Whenever any abatement or refund in an amount of one thousand dollars or less is recommended by the board of county commissioners, the board shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board shall order the refund of taxes pro rata by all taxing jurisdictions receiving payment thereof.
(b) Whenever any abatement or refund in an amount of one thousand dollars or less has been agreed upon and settled by the assessor pursuant to subsection(1.5) of this section, the assessor shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the assessor shall order the refund of taxes pro rata by all taxing jurisdictions receiving payment thereof.

(3) Whenever any abatement or refund in an amount in excess of one thousand dollars is recommended by the board of county commissioners, two copies of an application therefore, reciting the amount of such abatement or refund and the grounds upon which it should be allowed, shall be submitted to the administrator for review pursuant to section 39-2-116. If an application is approved, the board of county commissioners shall order the abatement of taxes pro rata for all levies applicable to such property, or, in the case of a refund, the board of county commissioners shall order the refund of taxes pro rata by all taxing jurisdictions receiving payment thereof.

*57628 (4) Deleted by Laws 1991, S.B.91-231, § 2.

(5) If a hearing is required pursuant to subsection (1) of this section, the board of county commissioners shall provide at least seven days’ notice of the scheduled hearing on a petition for abatement and refund of taxes to the person signing such petition and the taxpayer if the taxpayer did not sign the petition. Notice shall be provided by sending to such person through the United States mail notification of the date, time, and place of the hearing.

(6) Notwithstanding any law to the contrary, for taxes levied on and after January 1, 1990, a taxpayer may file a petition for abatement or refund of taxes levied on property if the valuation of such property was the subject of an arbitration hearing pursuant to section 39-8-108.5 and the arbitrator presiding over such hearing failed to deliver a decision to the taxpayer prior to the beginning date of the period during which the assessor sits to hear all objections and protests concerning the valuation of such property in the year following the year in which such arbitration hearing was held.

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WEST’S COLORADO REVISED STATUTES
ANNOTATED
TITLE 39. TAXATION
PROPERTY TAX
COLLECTION AND REDEMPTION
ARTICLE 10. COLLECTION
Current through all 1998 Second Regular Session laws

§ 39-10-114. Abatement, cancellation of taxes

(1)(a)(I)(A) Except as otherwise provided in sub-subparagraphs (D) and (E) of this subparagraph (I), if taxes have been levied erroneously or illegally, whether due to erroneous valuation for assessment, irregularity in levying, clerical error, or overvaluation, the treasurer shall report the amount thereof to the board of county commissioners, which shall proceed to abate such taxes in the manner provided by law. The assessor shall make such report if the assessor discovers that taxes have been levied erroneously or illegally. If such taxes have been collected by the treasurer, the board of county commissioners shall authorize refund of the same in the manner provided by law. Except as provided in sub-subparagraphs (E) and (F) of this subparagraph (I), in no case shall an abatement or refund of taxes be made unless a petition for abatement or refund is filed within two years after January 1 of the year following the year in which the taxes were levied. For purposes of this sub-subparagraph (A), “clerical error” shall include, but shall not be limited to, any clerical error made by a taxpayer in completing personal property schedules pursuant to the provisions of article 5 of this title. Notwithstanding any other law to the contrary, for purposes of this sub-subparagraph (A), “erroneous valuation” shall include, but shall not be limited to: Any reclassification of property from agricultural land to any other classification of property for the property tax year commencing January 1, 1996, if the property in question qualifies for classification as agricultural land as determined pursuant to section 39-1-102(1.6), as amended by Senate Bill 97-039, enacted at the first regular session of the sixty-first general assembly; and any denial of exemption from taxation for property claimed as agricultural and livestock products for the property tax year commencing January 1, 1996, if the property in question qualifies as agricultural and livestock products as determined pursuant to section 39-1-102(1.1), as amended by Senate Bill 97-039, enacted at the first regular session of the sixty-first general assembly.

*58130 (B) The assessor shall certify the proportional amount of the total amount of abatements and refunds granted pursuant to the provisions of this section to the appropriate taxing entities at the same time that the certification of valuation for assessment is made pursuant to the provisions of section 39-5-128. Any taxing entity may adjust the amount of its tax levy authorized pursuant to the provisions of section 29-1-301, C.R.S., by an additional amount which does not exceed the proportional share of the total amount of abatements and refunds made pursuant to the provisions of this section. After calculating the amount of property tax revenues necessary to satisfy the requirements of the “Public School Finance Act of 1994”, article 54 of title 22, C.R.S., any school district shall add an amount equal to the proportional share of the total amount of abatements and refunds granted pursuant to the provisions of this section prior to the setting of the mill levy for such school district. Any additional amount added pursuant to the provisions of this subsection (1) shall not be included in the total amount of revenue levied in said year for the purposes of computing the limit for the succeeding year pursuant to the provisions of section 29-1-301, C.R.S. Where a final determination is made granting an abatement or refund pursuant to the provisions of this section, the abatement or refund granted shall be payable at such time as determined by the board of county commissioners after consultation with affected taxing entities but no later than upon the payment of property taxes for the property tax year in which said final determination was made. For the purposes of this sub-subparagraph (B), a taxing entity’s proportional share of the total amount of abatements and refunds granted shall be based upon the amount of tax levied by a taxing entity on such real property in proportion to the total amount of tax levied on such real property by such taxing entities.

(13.5) Notwithstanding the provisions of sub-subparagraph (B) of this subparagraph (I), no school district shall be required to levy additional amounts for abatements and refunds which are the result of any protests or appeals of valuation upon which final orders or judgments rendered by a court of competent jurisdiction have been issued and which reduce the valuation for assessment of the district by more than twenty percent. Any school district which is currently levying for abatements, refunds, or both and which would not be required to levy such amounts if this sub-subparagraph (13.5) had been in effect for the tax year in which the court orders or judgments were issued shall have no further obligation to levy for uncollected amounts.

(C) The change or adjustment of any ratio of valuation for assessment for residential real property pursuant to the provisions of section 39-1-104.2 shall not constitute grounds for abatement of taxes as provided in sub-subparagraph (A) of this subparagraph (I).

(D) No abatement or refund of taxes shall be made based upon the ground of overvaluation of property if an objection or protest to such valuation has been made and a notice of determination has been mailed to the taxpayer pursuant to section 39-5-122; except that this prohibition shall not apply to personal property when a notice of determination has been mailed to the taxpayer, an objection or protest is withdrawn or not pursued, and the county assessor has undertaken an audit of such personal property that shows that a reduction in value is warranted.

(E) Notwithstanding the periods of limitation for filing a petition for and determining the amount of an abatement or refund of taxes provided in sub-subparagraphs (A) and (D) of this subparagraph (I), when an audit of prior years’ taxes for the period described in section 39-l0-101(2)(b) discloses that taxes are due and owing on personal property or on mines and on oil and gas leaseholds, such taxes shall be subtracted from any overpayment of such taxes determined to be due pursuant to this subparagraph (1) for any years during such period and prior to computing delinquent interest.

(F) Notwithstanding the periods of limitation for filing a petition for and determining the amount of an abatement or refund of taxes provided in sub-subparagraph (A) or (D) of this subparagraph (I), an abatement or refund of taxes may be made to any common interest community for property taxes levied for property tax years commencing on or after January 1, 1985, but prior to January 1, 1996, on property not valued in accordance with section 39-1-103(10), if a petition for abatement or refund is filed on or before June 1, 1997.

*58131 (II) Repealed by Laws 1988, S.B.184, § 24.

(b) Any taxes illegally or erroneously levied and collected, and delinquent interest thereon, shall be refunded pursuant to this section, together with refund interest at the same rate as that provided for delinquent interest set forth in section 39-10-104.5. Said refund interest shall accrue only from the date payment of taxes and delinquent interest thereon was received by the treasurer from the taxpayer. Refund interest on abatements or refunds made pursuant to sub-subparagraph (F) of subparagraph (I) of paragraph (a) of this subsection (1) shall only accrue on taxes paid for the two latest years of illegal or erroneous assessment.

(2)(a) Any taxes levied on personal property, including but not limited to mobile homes, which are determined to be uncorrectable after a period of one year after the date of their becoming delinquent may be cancelled by the board of county commissioners.
(b) When any real property has been stricken off to a county by virtue of a tax sale and there has been no transfer by the county of a certificate of purchase thereon, the taxes on such property may be determined to be uncorrectable after a period of six years from the date of becoming delinquent and they may be cancelled by the board of county commissioners. Such cancellation shall not affect the rights of the county under article 11 of this title to subsequently transfer any tax sale certificate nor its right to receive a tax deed and to exercise its rights thereunder with respect to such property.

(3) The treasurer shall keep a complete record of all taxes abated, refunded, or determined to be uncorrectable and cancelled by the board of county commissioners as provided in subsection (2) of this section. The treasurer shall file an annual report with the administrator by August 25 of each year, which shall include all taxes abated, refunded, or determined to be uncorrectable and cancelled. Such report shall include the name of each owner of taxable property granted such abatement, refund, or cancellation of property taxes, the amount of property taxes abated, refunded, or cancelled, and the date such abatement, refund, or cancellation was granted.

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