The technical task of taxing property under tax increment financing (TIF) plans is, well, technical. A TIF is used to fund the sale of municipal bonds for urban renewal. Under CRS 31-25-101 to 115, a TIF property is valued before it is included in the urban renewal plan (base value); subsequent increases in value, and the increased taxes therefrom, then finance the urban renewal authority (URA). Here, property was included in a TIF but later removed. The statute does not address how to calculate a TIF in this situation. The Assessor included the property in the base value, but not in the newly assessed value. This method, the court of appeals held, was erroneous because it created an imbalance in the URA’s TIF funding. But, the Assessor correctly measured the TIF’s 25-year termination date from the date the TIF was adopted, not after property was added. A new TIF calculation was ordered.
Tag Archives: Assessor
Northglenn Urban Renewal Authority v. Gil Reyes as Adams County Assessor and Board of County Commissioners of Adams County, 2013COA24 (February 28, 2013).
CTS Investments, LLC v. Garfield County Board of Equalization and Board of Assessment Appeals, 2013COA30 (March 14, 2013)
“Society doesn’t have values. People have values.” Milton Friedman. And property values are decided by people – specifically, assessors. One property (P1) could be valued less if the sale of another (P2) was considered. Assessor excluded the sale of P2, valuing P1 higher, concluding P2 was sold at a discount because the seller was compelled by economic duress, as reported in the news, and the sale was not “arms-length.” P1’s owner objected to the use of the reports and the conclusion that the P2 sale was not “arms-length.” The court of appeals held the reports, though hearsay, were admissible because a prudent person could rely on them. Sales under duress are typically excluded in valuations. The court, relying on the ALR, determined that “duress” means a seller not typically motivated, as was the circumstance with P2. Thus, the P2 sale was not arms-length and P1 was properly valued.