CO Code § 39-3-110 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 3 - Exemptions|Part 1 - Property Exempt From Taxation|§ 39-3-110. Property - Integral Part of Child Care Center - Charitable Purposes - Exemption - Limitations

  Property, real and personal, which is owned and used solely and exclusively for strictly charitable purposes and not for private gain or corporate profit shall be exempt from the levy and collection of property tax if such property is used as an integral part of a child care center:   Which is licensed pursuant to article 6 of title 26, C.R.S.;    Which is maintained for the whole or part of a day for the care of five or more children who are not sixteen years of age or older;    Which is not owned or operated for private gain or corporate profit;    The costs of operation of which, including salaries, are reasonable based upon the services and facilities provided and as compared with the costs of operation of any comparable public institution;    Which provides its services to an indefinite number of persons free of charge or at reduced rates equal to five percent of the gross revenues of such child care center or equal to ten percent of the amount of tuition charged by such child care center to the financially needy or charges on the basis of ability to pay;    The operation of which does not materially enhance, directly or indirectly, the private gain of any individual except as reasonable compensation for services rendered or goods furnished;    The property of which is claimed for exemption does not exceed the amount of property reasonably necessary for the accomplishment of the exempt purpose; and    The property of which is irrevocably dedicated to a charitable purpose. (1.5) No requirement shall be imposed that use of property which is otherwise exempt pursuant to the provisions of this section shall benefit the people of Colorado in order to qualify for said exemption.       Any exemption claimed pursuant to the provisions of subsection (1) of this section shall comply with the provisions of section 39-2-117.    The provisions of subsection (1) of this section shall not apply to any child care center which is operated for religious purposes and which is exempt from the levy and collection of property tax pursuant to the provisions of section 39-3-106 or .5.     History. Source: L. 89: Entire article R&RE, p. 1473, § 1, effective April 23; (1)(e) amended and (3) added, p. 1492, § 6, effective June 7. L. 90: (1.5) added, p. 1712, § 4, effective June 9.    Editor's note:   This section is similar to former § 39-3-101 (1)(g) as it existed prior to 1989.   ANNOTATION   One of the eight requirements to qualify for a property tax exemption under this section specifies that a child care center provides services to an indefinite number of persons either for free or for a reduced rate or charges on the basis of ability to pay. Children's Hosp. Colo. v. Prop. Tax Adm'r, , 439 P.3d 43 .   Tax property division rules define the phrase “charges on the basis of ability to pay” to mean “that the total cost for each child is determined by a scale based on the recipient's financial status.” This interpretation is not erroneous, nor does it lack reasonable basis in the law. Children's Hosp. Colo. v. Prop. Tax Adm'r, , 439 P.3d 43 .