Trust v. Bd. of Cty Comm'rs
2019 COA 18
Colo. Ct. App.2019Background
- Two adjacent La Plata County parcels: an east 0.62-acre parcel with the Martins’ residence and a west 0.72-acre unimproved parcel (the "west parcel").
- Titles shifted: 2014 the partnership held the west parcel and the Martins held the residence; later both were owned by the Trust for 2015–2016.
- County Assessor classified the west parcel as vacant for tax years 2014–2016; the Trust sought residential classification and appealed through the Board of Equalization and the Board of Assessment Appeals (BAA).
- The BAA (de novo) upheld the 2014 vacant classification, but for 2015–2016 partially reclassified two-thirds of the west parcel as residential based on view-preservation use.
- The Court of Appeals majority (Judge Carparelli) reversed the partial reclassification, holding the west parcel remained vacant for all years; Judge Vogt concurred; Judge Hawthorne dissented.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a contiguous unimproved parcel can be "residential land" under § 39‑1‑102(14.4)(a) | The Trust: contiguous vacant land used to enhance enjoyment (e.g., protecting views) is "used as a unit" with the residence and should be residential. | County/Assessor: contiguous parcels must have residential improvements or otherwise not qualify; passive/view preservation use is insufficient. | Held: Reversed partial residential classification; contiguous vacant parcel without residential improvements that are integral to the residence is vacant. "Used as a unit" requires more than passive looking-through use. |
| Whether the statutory definition of "residential improvements" (§ 39‑1‑102(14.3)) requires man-made improvements on contiguous parcels for residential classification | Trust: single-parcel cases expand "use" to allow adjacent vacant land classification when used to benefit residence. | County/Majority: to give meaning to the second sentence of § 102(14.3), contiguous parcels must have buildings/structures/fixtures/fences/amenities or water rights that are integral to the residence. | Held: Majority: contiguous parcel can be residential only if it contains residential improvements (man-made or water rights) integral to the neighboring residence; otherwise vacant. (Dissent disagreed.) |
| Whether "used as a unit" includes passive uses (e.g., view preservation) | Trust: "Used" need not be active; protecting views counts as use in conjunction with residence. | Majority/BAA: passive uses like view protection do not satisfy statutory "used as a unit" requirement for contiguous vacant parcels. | Held: Majority: passive/view-preservation alone insufficient; use must relate to residential improvements on the parcel(s). (Vogt concurs on narrow ground; Hawthorne dissents.) |
| Whether record title determines "common ownership" for classification | Trust: functional/beneficial ownership (Martins controlled both parcels) suffices to show common ownership. | County/BAA: record title distinctions (partnership vs. individuals) meant separate ownership in 2014. | Held: Majority did not reach common-ownership issue for 2014; dissent (Hawthorne) would find the Martins functionally owned both parcels and would have reversed 2014 classification. |
Key Cases Cited
- Farny v. Bd. of Equalization, 985 P.2d 106 (Colo. App. 1999) (BAA factual determinations on acreage used with a residence are entitled to deference)
- Gyurman v. Weld County Bd. of Equalization, 851 P.2d 307 (Colo. App. 1993) (passive uses such as keeping people off land and observing wildlife can support residential classification for single-parcel cases)
- Sullivan v. Board of Equalization, 971 P.2d 675 (Colo. App. 1998) (discussed as dicta regarding whether undeveloped contiguous parcel must itself contain a residence)
- Vail Associates, Inc. v. Bd. of Assessment Appeals, 765 P.2d 593 (Colo. App. 1988) (legislative purpose of residential classification statutes is to grant homeowners modest tax relief)
- Boulder County Bd. of Equalization v. M.D.C. Construction Co., 830 P.2d 975 (Colo. 1992) (constitutional principles on classification and uniformity of property taxation)