8 Colo. Code Regs. § 1304-2-V
Current through Register Vol. 47, No. 20, October 25, 2024
Section 8 CCR 1304-2-V - COMBINATION USE OF PROPERTYThe following rules apply to property exempted/applying for exemption which is used by anyone other than the owner or property owned by a religious organization which is used outside of its religious mission.
A. DEFINITIONS 1. "Otherwise exempt from the payment of property taxes", as stated in 39-3-116 (2)(b), C.R.S. means having met all of the requirements for exemption as specified in 39-3-105, or 39-3-127, C.R.S. or being exempt pursuant to Article VI cl. 2 of the Constitution of the United States or Section 4 of the Enabling Act of Colorado.B. GENERAL PROVISIONS 1. The "amount received by the owner for the use of such property" shall include all income no matter what it is called. This shall include, but not be limited to, rent, donations, contributions, and gifts received for the use of the property.2. "Reasonable expenses incurred in the operation and maintenance of the property" include, but are not limited to, utilities; custodial services and supplies; costs for routine maintenance, parts and labor; insurance; taxes; and interest on loans involving that particular piece of property. Expenses may also include depreciation, long-term maintenance expenses allowed in accordance with generally accepted accounting principles, capital expenses dedicated to refurbishing the property, and expenses incurred to allow the property to conserve energy, water or other natural resources.3. An "equitable portion of reasonable expenses incurred in the operation and maintenance of the property" will be determined by considering the amount of time a particular user occupies a portion of the property, and the amount of space used in comparison to the total area of the building, and the reasonable expenses incurred as defined in Rule V. B. 2. Either of the following sets of formulas may be used:(A)(1)Hrs of use by a particular user X Sq. Ft. of area used = Adjusted hrs. of usage by particular user Total sq. ft. of building
(2)Adjusted hrs. of use by a particular user = Percentage of possible use by that user 8760
(3) Percentage of possible use by a user X Reasonable expenses = Equitable portion of expenses(B)(1)Hrs of use by a particular user X Sq. Ft. of area used = Adjusted hrs. of usage by particular user Total sq. ft. of building(2)Adjusted hrs of use by a particular user = Percentage of actual use by that user Total adjusted hrs. of use by all users
(3) Percentage of actual use by a user X Reasonable expenses = Equitable portion of expenses Exclusive use of an area by a user must be considered twenty four hours of use for each day that the property is so occupied.
4. For those properties exempted under 39-3-107 to 113.5 and 39-3-127.7, C.R.S., excluding 39-3-108 (1)(b), the exemption will not be affected by occasional, non-continuous, non-qualifying use so long as that use does not exceed the limits set out in 39-3-106.5 (2) C.R.S. Should occasional, non-continuous, non-qualifying use exceed the stated limits, the percentage of taxable value will be based on the total amount of non-qualifying use.
39 CR 23, December 10, 2016, effective 12/30/201646 CR 23, December 10, 2023, effective 1/1/202447 CR 15, August 10, 2024, effective 6/28/2024, exp. 10/26/2024 (Emergency)47 CR 18, September 25, 2024, effective 10/15/2024