Hinsdale County Board of Equalization v. HDH Partnership

Citations

• 2019 CO 22
• 438 P.3d 742

Syllabus

Taxation—Record Title—Restrictive Covenants. In this property tax case, the Supreme Court considered whether the restrictive covenants and bylaws of a hunting and fishing club render the club the true \owner\ of the club grounds and therefore liable for property taxes, even though the club members hold record fee title to land parcels that comprise the club grounds. The Court held that such covenants and bylaws do not render the club the owner of real property for tax purposes. Colorado's property tax scheme reflects legislative intent to assess property taxes to the record fee owners of real property. The parcel owners in this case hold record title to their parcels, which they own in fee simple and can freely sell. They purchased their parcels with notice of, and subject to, the club's restrictive covenants and bylaws, which they can vote to amend or repeal. Because the parcel owners voluntarily agreed to the restrictive covenants and bylaws that facilitate the collective use of their property for recreational purposes, they cannot rely on these same restrictive covenants and bylaws to avoid property tax liability that flows from their record title ownership. The Court of Appeals' judgment was reversed and the Board of Assessment Appeals' order was reinstated.