Boulder County Bd. of Com'rs v. Healthsouth
246 P.3d 948
| Colo. | 2011Background
- HealthSouth petitioned for refund of 2002 personal property taxes after seeking a reduction in assessed value for its Longmont and Boulder facilities.
- HealthSouth admitted it filed schedules reporting non-existent property and paid taxes based on those false entries as part of a fraudulent scheme.
- The Boulder County assessor relied on HealthSouth's reported information; the county denied refunds and HealthSouth appealed to the BAA.
- The BAA dismissed HealthSouth’s petitions; the Court of Appeals reversed, suggesting HealthSouth had a viable abatement basis.
- The Supreme Court held that 39-10-114 does not provide abatement or refund for taxes paid on self-reported, non-existent property.
- The majority emphasizes truthful taxpayer reporting and construes overvaluation as generally an assessor-initiated issue, not a basis for refunds when the taxpayer knowingly misreports.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Statutory right to refund for false assets | HealthSouth contends it has a right to abatement/refund under overvaluation or clerical error grounds. | Boulder County/BAA argue no relief where taxes were based on taxpayer-reported, non-existent property. | No statutory right to refund under 39-10-114 for self-reported non-existent property. |
| Meaning of overvaluation | Overvaluation basis covers essentially all improper valuations, including taxpayer-induced overstatements. | Overvaluation mainly addresses assessor errors, not intentional taxpayer misreporting. | Overvaluation is limited to assessor-related errors; intentional misreporting cannot be used to claim a refund. |
| Clerical error scope | Clerical error includes taxpayer and third-party mistakes in schedules and could cover the HealthSouth filings. | Clerical error is for simple, clerical/mistranscription errors, not intentional misrepresentation. | Clerical error does not cover intentional misreporting of non-existent assets. |
| Relationship to Production Geophysical | Taxpayer should be able to recover despite wrongful inaction limitations discussed in Production Geophysical. | Production Geophysical supports denying relief where inaction or misreporting led to overvaluation. | Production Geophysical confirms policy against rewarding misreporting; no relief here. |
Key Cases Cited
- HealthSouth Corp. v. Boulder County Bd. of Comm'rs, 220 P.3d 966 (Colo.App.2009) (court held no statutory right to refund for non-existent property reporting)
- Boulder Country Club v. Boulder County, 97 P.3d 119 (Colo.App.2004) (erroneous valuation often involves legal issues about assessment)
- Cherry Hills Country Club v. Bd. of Cnty. Comm'rs, 832 P.2d 1105 (Colo.App.1992) (valuation issues may involve legal error in assessment)
- 5050 S. Broadway Corp. v. Arapahoe County Bd. of Comm'rs, 815 P.2d 966 (Colo.App.1991) (overvaluation addressed as legislative response to court decision)
- Production Geophysical Services, Inc. v. Property Tax Administrator, 860 P.2d 514 (Colo.1993) (taxpayers' inaction cannot be used to shield assessor from refund rules)
- Wyler/Pebble Creek Ranch v. Colorado Bd. of Assessment Appeals, 883 P.2d 597 (Colo.App.1994) (overvaluation can be factual; related to use and timing of taxes)
- Landmark Petroleum, Inc. v. Bd. of Cnty. Comm'rs, 870 P.2d 614 (Colo.App.1993) (clerical error includes transcription mistakes in records)