Can a county levy property taxes on equipment owned by a telecommunication company and installed on private land within the borders of the county?

The Colorado Court of Appeals says it can, reversing a decision by the state’s Board of Assessment Appeals (BAA), which argued that it could not. The BAA had granted TCI Satellite Entertainment an exemption from taxation on $220,950 worth of equipment set up in Montezuma County for the 1998 tax year.

As a result of the successful appeal by Montezuma County Attorney Bob Slough, the Montezuma County Commission voted 3-0 Monday to reject a request by TCI that $5,000 in taxes that have been levied and collected since last year be repaid.

"In light of Slough’s successful appeal, I recommend that the tax abatement request be denied," said County Tax Assessor Bob Cruzan.

The landmark victory could have statewide repercussions, giving county governments the legal muscle to collect property taxes from telecommunication companies that use private land for satellite receiving dishes, converter boxes, and remote controls for their converter boxes.

In the April 13 opinion, Judge Joann L. Vogt wrote that the court "reverse the BAA’s order ... TCI retains ownership of the property and is responsible for any taxes on it. During 1998, TCI owned such property at 419 different location in Montezuma County."

After the Board of Equalization upheld four tax bills totaling $4,929 for TCI property, the company appealed to the BAA for review after the Montezuma County Board of Equalization denied TCI’s request for review. The BAA agreed with TCI and ordered the county assessor to reduce the 1998 actual value of the property from $220,950 to zero, but the decision was appealed by the county’s board of equalization.

TCI contended that its property was exempt from taxation under Colorado law, which provides an exemption for personal property valued at $2,500 or less if the property would otherwise be listed on a "single personal property schedule." TCI argued that the BAA’s interpretation of that language, and subsequent allowance for a tax exemption, apply to a "per business location," noting that 59 of Colorado’s 63 counties have followed that mandate, applying the exemption on a per location basis. The Montezuma County BOE argued that the statute was misinterpreted by the BAA and the decision to allow TCI the exemption violated constitutional provisions mandating equality and uniformity in taxation.

"We agree with the BOE that the BAA’s construction of the statute was erroneous and that its order must therefore be reversed," the court decision stated. "TCI did not file a separate schedule for each location; rather, multiple locations were encompassed in a single schedule, and the total property value per schedule far exceeded $2,500."