Colorado Court Reverses Separate Tax Assessments at County Airport

Got story updates? Submit your updates here. ›

The Colorado Court of Appeals has reversed a previous judgment that upheld separate property tax assessments for a taxpayer's interests at a county-owned airport. The court concluded that the unit assessment rule required a single assessment of the taxpayer's possessory interest in both the leased land and improvements, rather than two separate assessments as originally issued. The case has been remanded for a new, unified assessment in accordance with the applicable methodology for valuing possessory interests in tax-exempt property.

Why it matters

This ruling provides clarity on the proper valuation approach for possessory interests in tax-exempt properties, which can have significant implications for both taxpayers and local governments. The decision reinforces the principle of unified assessments and could impact how similar disputes over airport property taxes are handled in the future.

The details

The dispute centered on the valuation of Sheltair Denver, LLC's leasehold interest in land and buildings constructed at the Jefferson County-owned airport. The county had originally issued separate property tax assessments for the land and improvements, but the court determined this was incorrect. The unit assessment rule requires a single assessment of the taxpayer's possessory interest in both the leased land and buildings, rather than two separate assessments.

• The Colorado Court of Appeals issued its ruling on March 31, 2026.

What’s next

The case has been remanded to the lower court for a new, unified assessment of the taxpayer's possessory interest in accordance with the applicable valuation methodology.