HDH Partnership v. Hinsdale County Board of Equalization

Citations

• 2017 COA 134

Syllabus

Owners of fishing and hunting memberships (petitioners) were taxed on the parcels of real estate allocated to them in their membership agreements. The parcels are part of a larger tract of land used as a hunting and fishing club (club). Membership in the club is granted to those who hold a deed to one of the parcels that collectively comprise the club grounds. Members cannot make improvements on their parcels or exclude other club members. The club retains control over the grounds and grants all members equal access, regardless of the parcel to which they hold title. A member's right to access the grounds can be revoked if the member owes money or violates club rules. Petitioners initiated this action after they disagreed with the county's assessment of their parcels. The Hinsdale County Board of Equalization (BOE) affirmed the assessor's valuation. Petitioners appealed to the Board of Assessment Appeals (BAA), which affirmed the BOE's decision. On appeal, petitioners argued that the law permits the court to look beyond the title to the substance of the parties' rights when determining ownership. The Court of Appeals concluded that the club was the true property owner because it enjoyed the most significant incidents of ownership. The members effectively had a license to use club grounds, even though they held bare legal title to the parcels. Therefore it was the club, and not the members, that had to bear the real property tax burden. Further, the BAA erred in affirming the assessor's valuation because it was based on the personal property value of petitioners' licenses to use club grounds rather than the value of the parcels as real property. The order was reversed and the case was remanded with directions.