POSSESSORY INTEREST
Based on a decision by the Colorado State Supreme Court, as of January, 2002, the El Paso County Assessor's Office was advised by the State of Colorado Division of Property Taxation that we would be required to value a new type of property interest. This new classification is called a "Possessory Interest."
POSSESSORY INTEREST is defined as: "A private property interest, in a tax-exempt property, or the right to the occupancy and use of any benefit in an exempt property right. This right to use can be granted by several arrangements including, a lease, permit, license, concession or contract.
The value of a Possessory Interest is estimated by calculating the discounted net present value of the actual lease amounts, paid to the tax-exempt property owner. Possessory Interests will be assessed at 29%, as are all non-residential properties in El Paso County. Payment of taxes for the Possessory Interest will be the responsibility of the tenant.
The Division of Property Taxation has mandated that all counties in the State of Colorado value and assess this type of property interest for the years 2001, 2002 and forward.
We have identified a number of possible private uses, within tax-exempt properties in El Paso County. These Possessory Interests include, but are not limited to:
Grazing Leases on Federal or State Owned Land
Private Day Care Providers in Public Schools
Privately Leased Medical Offices in Hospitals
Concessions at the Colorado Springs Airport
Land Leases at the Colorado Springs Airport
Car Rental Agencies at the Colorado Springs Airport
Land Leases on Military Bases
Retail Leases in City Owned Facilities
Retail and Concessions at City Owned Golf Courses
Notices of Valuation for 2006 Possessory Interests (for taxes due in 2007), will be mailed to the applicable property tenants in May, 2006.
Any questions regarding this type of property classification may be directed to:
Staci Smith, Appraiser I
Possessory Interest Department
El Paso County Assessor's Office
719-520-6656
or; e-mail: StaciSmith@elpasoco.com