Opinion ID: 1172158
Heading Depth: 1
Heading Rank: 3

Heading: The Role of a County Board of Equalization

Text: The basic framework for fair and uniform ad valorem taxation of real and personal property is set forth in the Colorado Constitution, Article X, Section 3, and is dependent upon a calculation of the actual value of the property to be taxed. Douglas County Bd. of Equalization v. Fidelity Castle Pines, Ltd., 890 P.2d 119, 122 (Colo. 1995). The constitution provides authority to the General Assembly to elaborate on general procedures for assessment of property, including equalization: Each property tax levy shall be uniform upon all real and personal property ... located within the territorial limits of the authority levying the tax. The actual value of all real and personal property ... shall be determined under general laws, which shall prescribe such methods and regulations as shall secure just and equalized valuations for assessments of all real and personal property.... Colo. Const. art. X, § 3 (emphasis added). The county tax assessor makes the initial assessment. See Colo. Const. art. X, § 3; § 39-5-104, 16B C.R.S. (1994). After taxpayer protest of the initial assessment to the county tax assessor, the taxpayer may seek review and decision by the BOE, see Arapahoe County Bd. of Equalization v. Podoll, 935 P.2d 14, 16 (Colo.1997), which decision can then be reviewed by the BAA or district court de novo. See id. at 18. [6] Assessment is the `act of placing a value for tax purposes upon the property of a particular taxpayer,' and equalization `deals with all the property of a class or subclass within a designated territorial limit, such as a county,' in the aggregate. Podoll, 935 P.2d at 17 (quoting Lamm v. Barber, 192 Colo. 511, 521, 565 P.2d 538, 545 (1977)). Thus, assessment deals with an individualized valuation of a certain property, while equalization, a leveling function, considers whether the particular property assessment is in balance with assessments of other similarly situated properties as a collective group within the jurisdiction. [7] In Colorado, all residential real property is valued [8] for property tax purposes by the assessor of the county where the property is located, § 39-1-103(5)(a), 16B C.R.S. (1994 & 1996 Supp.). Actual value may be determined using the market approach, which considers sales of similar properties. [9] See Podoll, 935 P.2d at 17. Valuation for assessment purposes is dependent upon the actual value of the property in a base year mandated by statute, and whether the property is agricultural, residential, commercial or mining property. See Board of Assessment Appeals v. Colorado Arlberg Club, 762 P.2d 146, 148 (Colo.1988). In order for a taxpayer to preserve the right of protest, the taxpayer must notify the tax assessor of his or her protest and objection no later than May 27 by mail, or June 1 by in-person notification. See § 39-5-121(1). Commencing on June 15, the county tax assessor begins to hear objections. See § 39-5-122(1), 16B C.R.S. (1994). The assessor is required to take into account any information presented by the taxpayer in determining whether an adjustment in value is warranted, see § 39-5-122(5)(b), 16B C.R.S. (1994), and if the taxpayer's objection and protest results in a written denial, the taxpayer may appeal to the BOE, see § 39-5-122(3), 16B C.R.S. (1994). The BOE is to focus on achieving just and equalized assessment of property within the county. When justice and right so require, the BOE shall raise, lower, or adjust any valuation for assessment appearing in the assessment roll. [10] § 39-8-102(1), 16B C.R.S. (1994); see Podoll, 935 P.2d at 16. A county BOE is statutorily empowered to hear petitions from all persons whose objections or protests have been refused or denied by the assessor, provided that the form and content of a petition conforms to the statute. & sect; 39-8-106(1). After the county BOE receives the taxpayer's appeal, it is required to set a hearing date and notify the taxpayer. See § 39-8-106(2). With no presumption in favor of any pending valuation, the BOE shall hear and consider all testimony and examine all exhibits produced or introduced by either the petitioner or the assessor. See § 39-8-107(1), 16B C.R.S. (1996 Supp.). Upon request by a taxpayer, the assessor is required by statute to make available, at least two days prior to the hearing, all data used to support the assessor's valuation. See § 39-8-107(3), 16B C.R.S. (1994). Either the tax assessor or the assessor's representative must be present at the BOE hearing to produce evidence regarding valuation of the property under appeal. See § 39-8-107(1), 16B C.R.S. (1994 & 1996 Supp.). A county BOE must complete its proceedings by August 5, see § 39-8-107(2), 16B C.R.S. (1994), and the board must issue a written decision granting or denying the taxpayer's petition in whole or in part, see § 39-8-107(1). There is no provision requiring the BOE to make a record of its proceedings. See § 39-8-107(1). The state Administrative Procedure Act does not apply to the BOE proceeding. See Carrara Place, Ltd. v. Board of Equalization, 761 P.2d 197, 205 (Colo.1988). But the BOE decision must be stated in writing and mailed to the taxpayer no later than August 10. See § 39-8-107(2). The proceeding before the county BOE is quasi-judicial in nature. See May Stores Shopping Ctrs., Inc. v. Shoemaker, 151 Colo. 100, 112, 376 P.2d 679, 684 (1962). Quasi-judicial action is characterized by the following factors: (1) a local or state law requiring that notice be given before the action is taken; (2) a local or state law requiring a hearing before the action is taken; and (3) a local or state law directing that the action results from the application of prescribed criteria to the individual facts of the case. See Hadley v. Moffat County Sch. Dist., 681 P.2d 938, 945 n. 3 (Colo.1984). Such criteria may include broadly stated provisions of an agency's enabling act, regulations promulgated thereunder, or both. See Zamarripa v. Q & T Food Stores, Inc., 929 P.2d 1332, 1342 (Colo.1997). Quasi-legislative action involves the formulation of regulatory policy of general application to an affected group. Quasi-judicial action focuses on the application of legislative or quasi-legislative requirements to an individual under a particular set of facts. [11] See Colorado Ground Water Comm'n v. Eagle Peak Farms, 919 P.2d 212, 217 (Colo.1996). Quasi-judicial decisions by administrative agencies are normally subject to limited review on appeal based upon the agency record. Here, the legislature chose to dispense with the requirement of keeping an administrative record of the BOE proceeding, and to allow a taxpayer to proceed de novo on appeal from the BOE to either the BAA or a district court; however, that choice does not alter the quasi-judicial nature of the BOE proceeding. The elements of quasi-judicial action are manifested by the BOE statutory provisions. The BOE decision is required by statute to be preceded by written notice and a hearing, and the BOE is to apply the criteria of just and equalized assessment, which shall be achieved through raising, lowering, or adjusting the assessment, as appropriate. See § 39-8-102(1). The BOE must notify the petitioner and the assessor in writing of its decision. See § 39-8-107(1). Thus, the indicia of quasi-judicial action attend a BOE decision.