FLOOD00213 - Laserfiche WebLink

Home Browse Search

;' . . .. ~ conducted on a scheduled basis. In still other areas, where property characteristics remain stable, an infrequent physical inspection cycle may be sufficient. The check on the accuracy of assessments through the one-percent audit procedure could include recommendations concerning the frequency of physical inspections in each county. (3) The next recommendation is that a pool of money be established by the state from which funds could be drawn, with terms of no interest and repayment in five years, for the purpose of upgrading assessors' offices. The problem is that some counties will have considerable immediate expenses in upgrading their offices, and that most of these costs will constitute on-going expenditures. This recommendation is based on the idea that a transition period, perhaps as long as five years, will be necessary for some counties to reach the desired level of assessment capability. Funds for the pool would be derived in equal proportions from the state and local severance tax trust funds and from community development block grant funds which have been targeted for economic development. Each source would contribute $700,000 for the pool with a resulting total projected fund of $2,100,000. We also suggest that state school finance moneys refunded to the state as a result of overpayment due to undervaluation of taxable property be placed in the fund. (4) The final recommendation is that the state appropriate $300,000 for a study of state conducted assessments of public utilities and railroads. Currently, state assessed properties are not sUbject to the annual one percent audit. Absence of such an audit has led to questions about the accuracy of these assessments. There are 12 categories of public utility properties (e.g., electric, gas, and telephone companies, pipeline companies, railroads and airlines) and actual appraisals would be conducted of sample properties from each category. Financial documents and other source materials used by the Division of Property Taxation would be reviewed to determine their appropriate use in the appraisals. A determination would be made to find whether methodologies of the Division's appraisals are consistent with proper standards, including their being consistent with standards required of county assessors. The procedures outlined for this recommendation would either silence critics of the Division's methodologies and its resulting appraisals, or would point out areas that need to be corrected with regard to properties subject to state assessment. ~RespectfullY mit,teted' , .. . .... / Senator Ted Strickland Chairman, Colorado Legisla ive Counc i 1 -3-