C.R.S. Section 39-3-106.5
Tax-exempt property

  • incidental use
  • exemption
  • limitations

(1)

If any property, real or personal, which is otherwise exempt from the levy and collection of property tax pursuant to the provisions of section 39-3-106, is used for any purpose other than the purposes specified in sections 39-3-106 to 39-3-113.5, such property shall be exempt from the levy and collection of property tax if:

(a)

The property is used for such purposes for less than two hundred eight hours, adjusted for partial usage if necessary on the basis of the relationship that the amount of time and space used for such other purpose bears to the total available time and space, during the calendar year; or

(b)

The use of the property for such purposes results in either:

(I)

Less than ten thousand dollars of gross income to the owner of such property which is derived from any unrelated trade or business, as determined pursuant to the provisions of sections 511 to 513 of the federal “Internal Revenue Code of 1986”, as amended; or

(II)

Less than ten thousand dollars of gross rental income to the owner of such property.

(1.5)

Notwithstanding the provisions of subsection (1) of this section, for property tax years commencing on or after January 1, 1994, if any property, real or personal, which is otherwise exempt from the levy and collection of property tax pursuant to the provisions of section 39-3-106, is used for any purpose other than the purposes specified in sections 39-3-106 to 39-3-113.5, such property shall be exempt from the levy and collection of property tax if:

(a)

The property is used for such purposes for less than two hundred eight hours, adjusted for partial usage if necessary on the basis of the relationship that the amount of time and space used for such other purpose bears to the total available time and space, during the calendar year; or

(b)

The use of the property for such purposes results in:

(I)

Less than ten thousand dollars of gross income to the owner of such property which is derived from any unrelated trade or business, as determined pursuant to the provisions of sections 511 to 513 of the federal “Internal Revenue Code of 1986”, as amended; and

(II)

Less than ten thousand dollars of gross rental income to the owner of such property.

(2)

Except as otherwise provided in section 39-3-108 (3) and subsection (3) of this section, if any property, real or personal, that is otherwise exempt from the levy and collection of property tax pursuant to the provisions of sections 39-3-107 to 39-3-113.5 is used on an occasional, noncontinuous basis for any purpose other than the purposes specified in sections 39-3-106 to 39-3-113.5, such property shall be exempt from the levy and collection of property tax if:

(a)

The property is used for such purposes for less than two hundred eight hours, adjusted for partial usage if necessary on the basis of the relationship that the amount of time and space used for such other purpose bears to the total available time and space, during the calendar year; or

(b)

The use of the property for such purposes results in less than twenty-five thousand dollars of gross rental income to the owner of such property.

(3)

The requirement that property be used on an occasional basis in order to qualify for the exemption set forth in subsection (2) of this section shall not apply to property, real or personal, that is otherwise exempt from the levy and collection of property tax pursuant to the provisions of section 39-3-111 that is used for any purpose other than the purposes specified in sections 39-3-106 to 39-3-113.5.

Source: Section 39-3-106.5 — Tax-exempt property - incidental use - exemption - limitations, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-39.­pdf (accessed Oct. 20, 2023).

39‑3‑101
Legislative declaration - presumption of charitable purpose 39‑3‑102
Household furnishings - exemption 39‑3‑103
Personal effects - exemption 39‑3‑104
Ditches, canals, and flumes - exemption 39‑3‑105
Public libraries - governments - school districts - exemption 39‑3‑106
Property - religious purposes - exemption - legislative declaration 39‑3‑106.5
Tax-exempt property - incidental use - exemption - limitations 39‑3‑107
Property - not-for-profit schools - exemption 39‑3‑108
Property - nonresidential - health-care facility - water company - charitable purposes - exemption - limitations 39‑3‑108.5
Property - community corrections facility - exemption 39‑3‑109
Residential property - integral part of tax-exempt entities - charitable purposes - exemption - limitations 39‑3‑110
Property - integral part of child care center - charitable purposes - exemption - limitations 39‑3‑111
Property - used by fraternal or veterans’ organization - charitable purposes - exemption - limitations 39‑3‑111.5
Property - health-care services - charitable purposes - exemption - limitations 39‑3‑112
Residential property - orphanage - low-income elderly or individuals with disabilities - homeless or abused - low-income households - charitable purposes - exemption - limitations - definitions 39‑3‑112.5
Residential property - homeless - charitable purposes - exempt - limitations 39‑3‑113
Residential property - while being constructed - charitable purposes - exemption - limitations 39‑3‑113.5
Property acquired by nonprofit housing provider for low-income housing - use for charitable purposes - exemption - limitations - definitions 39‑3‑114
Burden - claim for charitable exemption 39‑3‑115
Statutes not applicable 39‑3‑116
Combination use of property - charitable, religious, and educational purposes - exemption - limitations 39‑3‑117
Cemeteries - not-for-profit - exemption 39‑3‑118
Intangible personal property - exemption 39‑3‑118.5
Business personal property - exemption - exemption authority for local governments 39‑3‑118.7
Community solar garden - partial business personal property tax exemption - definitions 39‑3‑119
Inventories - materials and supplies - held for consumption or primarily for sale - exemption 39‑3‑119.5
Personal property - exemption - reimbursement to local governments - legislative declaration - definitions 39‑3‑120
Livestock - exemption 39‑3‑121
Agricultural and livestock products - exemption 39‑3‑122
Agricultural equipment used in production of agricultural products - CEA facilities - exemption - definition 39‑3‑123
Works of art, literary materials, and artifacts - on loan - exemption - limitations - definitions 39‑3‑124
Property used by state entity - installment sales or lease agreement - financed purchase of an asset, certificate of participation, or leveraged lease agreement - exemption 39‑3‑126
Horticultural improvements - exemption - limitation - exception 39‑3‑126.5
Mobile homes - low-value - exemption - legislative declaration - definition 39‑3‑127
County fair property - exemption - limitation 39‑3‑127.5
Qualifying business entities - participation in federal tax credit transactions - exemption - requirements - definitions 39‑3‑127.7
Community land trust property - nonprofit affordable homeownership developer property - exemption - requirements - legislative declaration - definitions 39‑3‑128
Exempt property listed and valued 39‑3‑129
Proportional valuation - exempt property 39‑3‑130
Change in tax status of property - effective date - tax liability 39‑3‑131
Entire property becomes tax-exempt 39‑3‑132
Portion of property becomes tax-exempt 39‑3‑133
Payment of property taxes extinguishes lien 39‑3‑134
Condemnation by tax-exempt agency - duties of treasurer 39‑3‑137
Organizations with tax-exempt status - forgiveness of taxes owed 39‑3‑138
EV supply equipment - exemption 39‑3‑201
Legislative declaration 39‑3‑202
Definitions 39‑3‑203
Property tax exemption - qualifications 39‑3‑204
Notice of property tax exemption 39‑3‑205
Exemption applications - penalty for providing false information - confidentiality 39‑3‑206
Notice to individuals returning incomplete or nonqualifying exemption applications - denial of exemption - administrative remedies 39‑3‑207
Reporting of exemptions - reimbursement to local governmental entities 39‑3‑208
Auditing of property tax exemption program 39‑3‑209
State expenditure for property tax exemptions - mechanism for refunding of excess state revenue - legislative declaration 39‑3‑210
Reporting of property tax revenue reductions - reimbursement of local governmental entities - definitions - local government backfill cash fund - creation - repeal
Green check means up to date. Up to date

Current through Fall 2024

§ 39-3-106.5’s source at colorado​.gov