Durango – The state’s arbiter of tax disputes, the Board of Assessment Appeals, has concluded that San Juan County was justified in refusing Durango Mountain Resort a tax break as a timber harvester on 153 acres of land slated for high-end vacation homes.
In a decision awaited by assessors across the state, the board concluded June 23 that San Juan County was correct in classifying the land as vacant rather than as forestland that is eligible for a property-tax reduction under a 1990 state law aimed at helping tree farmers and small logging outfits.
The 1990 law expanded the definition of agricultural land – and the low tax rate – to include forested lands of at least 40 acres that produce wood products for profit and are subject to a forest management plan. Some 631 landowners, most of whom are not tree farmers or loggers, claim the tax break on 400,000 acres statewide.
The Colorado State Forest Service administers the program, determining eligibility and compliance. Forestry officials said the tax break is a good incentive for private landowners to maintain healthy forests under state supervision.
Under the 1990 law, Durango Mountain Resort has never paid more than $137 a year in property taxes on the acreage. But San Juan County officials said the resort and its realty arm, Durango Mountain Land Co., did not meet the law’s modest requirements for eligibility because there was no logging for income and no compliance with a forest-management plan.
The county said State Forest Service overview of the program had been lax. It classified the land as vacant with a value of $4.6 million and said the 2005 tax bill is $52,245.
Durango Mountain appealed the classification, claiming it had conducted tree-thinning operations. But the state assessment appeals board agreed with the county.
Durango Mountain has 45 days after the decision to petition the state Court of Appeals. Resort officials couldn’t be reached for comment.
Staff writer Electa Draper can be reached at 970-385-0917 or edraper@denverpost.com.
