Section 39-5-105 - Improvements - water rights - valuation(1) Improvements shall be appraised and valued separately from land, except improvements other than buildings on land which is used solely and exclusively for agricultural purposes, in which case the land, water rights, and improvements other than buildings shall be appraised and valued as a unit.(1.1)(a)(I) Water rights, together with any dam, ditch, canal, flume, reservoir, bypass, pipeline, conduit, well, pump, or other associated structure or device as defined in article 92 of title 37, C.R.S., being used to produce water or held to produce or exchange water to support uses of any item of real property specified in section 39-1-102 (14), other than for agricultural purposes, shall not be appraised and valued separately but shall be appraised and valued with the item of real property served as a unit.(II) For purposes of this section, valuing the water rights and the item of real property served by the water rights "as a unit" means that any increase in value of the property served with water made available directly, or by exchange, by the use of any dam, ditch, pipeline, canal, flume, reservoir, bypass, conduit, well, pump, or other associated structure or device, as defined in article 92 of title 37, C.R.S., shall be included in the valuation of the real property served by the water rights.(b) The general assembly finds and declares that the value of water rights, and any dam, ditch, pipeline, canal, flume, reservoir, bypass, conduit, well, pump, or other associated structure or device, as defined in article 92 of title 37, C.R.S., used or held to produce or exchange water, for taxation purposes, should be recognized as a contribution to the value of all of the interests in the entire property served thereby and that the separate valuation of such water rights could result in double taxation. The provision of this subsection (1.1) shall not be construed to exempt any water rights from taxation but shall be construed as setting forth procedures for the valuation thereof.L. 64: R&RE, p. 695, § 1. C.R.S. 1963: § 137-5-5. L. 75: Entire section amended, p. 1474, § 2, effective July 1. L. 76: Entire section amended, p. 771, § 1, effective May 26; (1) amended, p. 760, § 18, effective 1/1/1977. L. 77: (3) added, p. 1753, § 1, effective June 19. L. 79: (1) amended, p. 1404, § 2, effective July 1. L. 83: (1.1) added, p. 1503, § 1, effective May 25. L. 87: (2) and (3) repealed, p. 1304, § 1, effective May 20. L. 96: (1.1) amended, p. 468, § 1, effective April 23. For manner of determination of actual value of agricultural lands, see § 39-1-103(5) .