2017 CO 104
Colo.2017Background
- OXY USA Inc. (Oxy) operates oil and gas leaseholds in Mesa County and must file annual operator statements reporting net taxable revenue (selling price at the wellhead) used by the county assessor to value leaseholds for property tax assessment.
- For tax year 2011 Oxy failed to deduct allowable costs on its operator statement, overreported wellhead selling price, overvalued its leasehold, and thereby overpaid property taxes.
- Oxy filed revised operator statements and petitioned the Mesa County Board of Commissioners for abatement and refund under Colo. Rev. Stat. § 39-10-114(1)(a)(I)(A) (abatement for taxes levied "erroneously or illegally" due to, among other things, "overvaluation").
- The County Board denied the petition; the Board of Assessment Appeals (BAA) reversed and granted abatement; the Colorado Court of Appeals reversed the BAA, holding that taxpayer-caused errors cannot support abatement under the statute.
- The Colorado Supreme Court granted certiorari to decide whether the abatement statute permits refunds when overvaluation was caused solely by taxpayer error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 39-10-114(1)(a)(I)(A) allows abatement/refund for overvaluation caused solely by taxpayer error | Oxy: statute authorizes abatement for "overvaluation" without distinguishing source; taxpayer error should qualify | County: statutory grounds do not apply when the taxpayer alone caused the overvaluation; Coquina/HealthSouth require denial | Held: statute allows abatement/refund for overvaluation even if caused solely by taxpayer mistake; Oxy entitled to relief |
Key Cases Cited
- Coquina Oil Corp. v. Larimer County Bd. of Equalization, 770 P.2d 1196 (Colo. 1989) (held "clerical error" did not include errors made by taxpayer under pre-1991 statute)
- 5050 S. Broadway Corp. v. Arapahoe County Bd. of Comm'rs, 815 P.2d 966 (Colo. App. 1991) (court of appeals limited post-levy abatement where protest remedy was missed; prompted legislative change)
- Boulder Cty. Bd. of Comm'rs v. HealthSouth Corp., 246 P.3d 948 (Colo. 2011) (denied refund where taxpayer intentionally reported fictitious personal property; distinguished intentional vs. inadvertent taxpayer overvaluation)