CO Code § 39-6-106 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 6 - Valuation of Mines|§ 39-6-106. Valuation for Assessment of Producing Mines

  Every person owning or operating any mine classified as a producing mine shall, no later than April 15 of each year, prepare, sign under the penalty of perjury in the second degree, and file with the assessor of the county wherein such mine is located a statement showing:   The name of such mine and a list of mining claims and any other lands comprising the mining property of such mine, together with the total number of acres contained in each claim or parcel so listed;    The name of the owner thereof, together with the name of the operator thereof, and the address of each;    The total number of acres contained in such mine and, if such mine is located in more than one county, the total number of acres contained in such mine in each county;    The number of tons of ore extracted therefrom during the calendar year immediately preceding and, if the value of the products derived from the ore is used in determining gross value, the number of tons, pounds, or ounces of products derived from the ore;    The gross value from production of the ore extracted during said calendar year, which means and includes the amount for which ore or the first salable products derived therefrom were or could be sold by the owner or operator of a mine, as determined using actual gross selling prices;    The costs of extracting such ore, excluding the compensation of any officer or agents not actively and continuously engaged in or about the mine;    The costs of treatment, reduction, transportation, and sale of such ore or the first salable products derived therefrom;    The gross proceeds from production of such ore, which means and includes the value of the ore immediately after extraction, which value may be determined by deducting from gross value all costs of treatment, reduction, transportation, and sale of such ore or the first salable products derived therefrom;    The net proceeds from production of such ore, which means and includes the amount determined by deducting from the gross proceeds all costs of extracting such ore. (1.4)   The owner or operator of a producing mine may request permission to state an average figure for the items required by paragraphs (d) to (i) of subsection (1) of this section based on any three-year, five-year, or ten-year period immediately preceding January 1 of the year in which the statement must be filed. The same reporting method shall be used for all annual statements filed in a single year pertaining to a particular mine.      The owner or operator may make an initial request pursuant to this subsection (1.4) by filing the request with the board of county commissioners of each county in which the mine is located at least forty-five days prior to the reporting date specified in the introductory portion to subsection (1) of this section and attaching a copy of the request to the annual statement filed pursuant to subsection (1) of this section with the county assessor of each county in which the mine is located. (b) (I) The owner or operator may make an initial request pursuant to this subsection (1.4) by filing the request with the board of county commissioners of each county in which the mine is located at least forty-five days prior to the reporting date specified in the introductory portion to subsection (1) of this section and attaching a copy of the request to the annual statement filed pursuant to subsection (1) of this section with the county assessor of each county in which the mine is located.    The owner or operator may make subsequent changes in the reporting method pursuant to this subsection (1.4) by filing a request for a change in the reporting method with the board of county commissioners and the county assessor of every county in which the mine is located at least forty-five days prior to the reporting date specified in the introductory portion to subsection (1) of this section.    The board of county commissioners of each county which receives a request pursuant to this subsection (1.4) shall approve or deny the request at least thirty days prior to the reporting date specified in the introductory portion to subsection (1) of this section. Failure of a board of county commissioners to approve or deny the request within the thirty days shall be deemed an approval of the request.       Once an owner or operator has made the initial election allowed by this subsection (1.4), the owner or operator shall file all subsequent annual statements pursuant to subsection (1) of this section using the same reporting method. The owner or operator shall not alter the reporting method until the board of county commissioners for every county in which the mine is located authorizes the use of the alternate method.    The fact that authorization to alter the reporting method has not been received from all or any of the boards of county commissioners for the counties in which the mine is located shall not relieve the owner or operator from the obligation to file the annual statement pursuant to subsection (1) of this section with all counties in which the mine is located. (1.7) As used in subsection (1) of this section, unless the context otherwise requires:     “Costs” means those costs directly attributable to the operation of the producing mine and to the treatment, reduction, transportation, or sale of the ore and includes, but is not limited to, allocation of: (a) (I) “Costs” means those costs directly attributable to the operation of the producing mine and to the treatment, reduction, transportation, or sale of the ore and includes, but is not limited to, allocation of:   The costs of capital assets, which only include those expenditures listed on the fixed asset records of the mine;    Preproduction development costs amortized over the life of the mine; and    Off-site costs directly attributable to the operation of the producing mine or to the treatment, reduction, transportation, or sale of the ore; however, in no event shall off-site costs include compensation of any officer or agent not actively and continuously engaged in or about the mine.       Allocation of the costs of capital assets pursuant to this paragraph (a) shall be done in accordance with generally accepted accounting principles. No change in the allocation method may be made without the prior approval of the county boards of equalization in all counties in which the mine is located.       “Costs” does not include:   Any amounts designated as profit or margin which are attributable to any part of the treatment, reduction, transportation, or sale of the ore; or    Any amounts which have been or could have been deducted previously as part of the valuation of the producing mine pursuant to this section.                On the basis of the information contained in such statement, the assessor shall value such mine for assessment at an amount equal to twenty-five percent of the gross proceeds, but if the net proceeds exceed twenty-five percent of the gross proceeds, then such mine shall be valued for assessment at the amount of such net proceeds.    If any mining claim or other land is owned by the same person operating a producing mine which is contiguous to said claim and if, during the preceding calendar year, ore was actually extracted from said claim or other land or transported through such claim or other land by cut or tunnel or if any phase of the operation of said producing mines was conducted on such claim or other land, then such claim or other land shall be deemed to be a part of such producing mine and assessed therewith. All other claims or other land under the same ownership shall be valued in the same manner as other real property, on an acreage basis, regardless of surface contiguity.    If any mining claim comprising part of the mining property of a producing mine is not patented or entered for patent, then the possessory interest therein shall be the subject of taxation.    Any increase in the valuation of a producing mine shall constitute an addition to taxable real property for purposes of the definition of “local growth” contained in section 20 (2)(g) of article X of the state constitution.    This section shall apply to and affect only the valuation of producing mines pursuant to this article.     History. Source: L. 65: R&RE, p. 1103, § 1. C.R.S. 1963: § 137-6-5. L. 72: P. 570, § 53. L. 85: (3) amended, p. 1212, § 7, effective May 9. L. 94: (1)(c) to (1)(e), (1)(g), and (1)(h) amended and (1.4), (1.7), (5), and (6) added, p. 1203, § 1, effective May 19. L. 2000: (1.4)(a) amended, p. 671, § 1, effective August 2. History. Source: L. 65: R&RE, p. 1103, § 1. C.R.S. 1963: § 137-6-5. L. 72: P. 570, § 53. L. 85: (3) amended, p. 1212, § 7, effective May 9. L. 94: (1)(c) to (1)(e), (1)(g), and (1)(h) amended and (1.4), (1.7), (5), and (6) added, p. 1203, § 1, effective May 19. L. 2000: (1.4)(a) amended, p. 671, § 1, effective August 2.    Cross references:   For perjury in the second degree and the penalty therefor, see §§ 18-8-503 and 18-1.3-501 .   ANNOTATION   Annotator's note. The following annotations include cases decided under former provisions similar to this section.   This section is constitutional. Tallon v. Vindicator Consol. Gold Mining Co., 59 Colo. 316 , 149 P. 108 (1915).   Valuation set by assessor presumed to be right. The power to determine the valuation of the mining property for taxation is lodged in the assessor; and, when he has acted and determined the value, he is presumed to be right. Standard Chem. Co. v. Curtis, 77 Colo. 10 , 233 P. 1112 (1925).   Thus, burden of proof is on taxpayer to establish allegation of excessive assessment. Standard Chem. Co. v. Curtis, 77 Colo. 10 , 233 P. 1112 (1925).   Ore mined by lessees becomes property of lessees. City & County of Denver v. Sec. Life & Accident Co., 173 Colo. 248 , 477 P.2d 369 (1970).   Tax levied by this section levied on possessory right. The tax under this section is not laid alone on a producing mine or mining claim, but also may be upon the possessory rights therein. Rummel v. Musgrave, 142 Colo. 249 , 350 P.2d 825, appeal dismissed, 364 U.S. 293, 81 S. Ct. 105, 5 L. Ed. 2d 83 (1960).   Thus, lessee of federal government may be taxed on his mining rights. Under this section, the possessory and leasehold rights of private citizens in uranium claims on lands of the United States may legally be assessed by the state, though title to the lands on which the claims are located is in the United States and is part of the public lands. Rummel v. Musgrave, 142 Colo. 249 , 350 P.2d 825, appeal dismissed, 364 U.S. 293, 81 S. Ct. 105, 5 L. Ed. 2d 83 (1960).   Margin allocation cannot be deducted as part of the costs of treatment, reduction, transportation, and sale of ore pursuant to this section. Huddleston v. Grand County Bd. of Equaliz., 913 P.2d 15 (Colo. 1996).