BoCC Consent Agenda, Date of Public Meeting
Agenda Item # (leave blank)
Board Summary Report
Date:
November 9, 2016
To:
Board of County Commissioners
Through:
Sue Sandstrom, Treasurer
From:
Debbie Dater, Property Tax Director
Subject:
Cancelation of Personal Property Tax for Closed Businesses
Request and Recommendation
Request for adoption of a resolution canceling levied personal property taxes that are deemed
uncollectible for tax years 1995 through 2006, plus taxes for subsequent years for these
businesses, if any.
Background
Pursuant to CRS 39-10-114(2)(a), “Any taxes levied on personal property, including but not
limited to mobile homes, which are determined to be uncollectible after a period of one year after
the date of their becoming delinquent may be canceled by the board of county commissioners.”
This particular list is comprised of inactive businesses in Arapahoe County with amounts due for
tax years 1997 through 2006. If taxes in subsequent years for these businesses were also found to
be due, the subsequent years were included in this request for cancelation. The list also includes
taxes for 1995, where the court ordered amounts were paid and the remaining balances were
never canceled.
Links to Align Arapahoe
This is a business process that helps to clean up old records, giving a better picture of tax revenue
that is outstanding and has the potential of being collected. By canceling uncollectible personal
property and mobile home taxes, staff can focus on collecting more current delinquencies, thus
contributing to Fiscal Responsibility.
Discussion
In recent years, the Treasurer’s Office has collected over 97% of the property taxes due every
year. The amounts to be canceled represent a very small percentage of the overall expected
revenue for all authorities for the affected tax years. The expected revenue amounts range from
just over $402.750 million for tax year 1997 to over $794.5 million for tax year 2014.
There are multiple reasons for these cancelations, including bankruptcy cases being dismissed,
final settlements on bankruptcy cases, businesses being closed, and assets being sold, seized by
the state and/or being destroyed.
Page 1 of 3
BoCC Consent Agenda, Date of Public Meeting
Agenda Item # (leave blank)
The following is a summary by year of the amounts to be canceled. Please note that for tax year
2001, there is a single tax record with an amount due of almost $1.8 million. This is why the total
requested cancelation for tax year 2001 is substantially more than the other years.
The resolution will contain an attachment detailing the property identification numbers, the tax
years, the amounts to be canceled, the reasons for the cancelations, and the amount that would
have been disbursed to the county, if the taxes had been collected.
Tax Year
1995
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Totals
# of Parcels
14
1
2
1
82
193
189
563
641
675
666
275
155
60
45
27
12
11
6
3,618
Dollar Amount
13,991.20
543.60
243.21
239.89
259,390.85
2,262,387.42
297,509.82
381,026.08
449,182.33
412,310.11
424,749.00
151,459.70
92,418.79
45,197.28
21,320.37
26,015.45
9,321.03
12,874.26
5,320.61
4,865,501.00
Alternatives
N/A
Fiscal Impact
The amount we are requesting to be canceled is $4,865,501.00, which if collected, would have
been disbursed to multiple taxing authorities, including Arapahoe County. The amount payable
to the county would have been $657,613.12. As the 3,618 records have been determined to be
uncollectible for a variety of reasons, there is no real fiscal impact to the County.
Reviewed By:
Sue Sandstrom, Treasurer
Todd Weaver, Budget Manager
Debbie Dater, Property Tax Director
Monica Kovaci, Assistant County Attorney
Page 2 of 3
BoCC Consent Agenda, Date of Public Meeting
Agenda Item # (leave blank)
RESOLUTION NO. ___________. It was moved by Commissioner __________________ and
duly seconded by Commissioner ________________ to adopt the cancelation of 1997 through
2006 personal property taxes for businesses that are no longer active, along with taxes due for
subsequent years, if any; and to adopt the cancelation of the remaining balance of 1995 taxes after
a court ordered settlement, all of which are identified in the attached Exhibit A presented to the
Board of County Commissioners on this date.
The vote was:
Commissioner Bockenfeld, ____; Commissioner Doty ____; Commissioner Holen _____;
Commissioner Jackson _____; Commissioner Sharpe, ____.
The Chair declared the motion carried and so ordered.
Page 3 of 3