La Plata County commissioners doubled down Tuesday on their request for an audit into the state Division of Property Taxation over legal and ethical concerns.
The concerns grew out of an apparently close relationship between a high-level state tax official and Colorado luxury resorts. The tax official – required to be neutral – appeared to coach a tax consultant hired by the resorts about how to minimize property taxes, according to emails and texts obtained by the counties.
Eagle, San Miguel and La Plata counties have called for an audit. After inaction at the state level, La Plata County approved a second audit request Tuesday.
“If something looks and smacks of favoritism or behind-the-scenes dealings ... it’s not good for that public trust,” said Commissioner Marsha Porter-Norton, during a board meeting Tuesday. “I think the reason the audit is important is we will know, if the audit can be done, if this is bad judgment or wrongdoing.”
The Colorado Division of Property Taxation, located within the Department of Local Affairs, values property, resolves valuation disputes and oversees procedural documents for assessors’ offices across the state.
Property assessment disputes have cropped up between some hotels in Eagle and San Miguel counties and the county governments.
The issue revolves around property assessment rates. The hotels have argued that in some cases they should be assessed at the residential rate, 7.15% of market value, not the commercial rate, 29% of market value.
The counties say the state tax division’s deputy director, Curt Settle, inappropriately advised the resort tax consultant, Bruce Cartwright with Duff & Phelps, regarding the disputes.
In La Plata County, the concern was not related to hotels, but did involve the same firm, Duff & Phelps. The county was working on a case in which a property owner wanted an undeveloped plot of land to be reclassified as residential, according to county staff members.
The counties say the issue represents a violation of public trust and puts property tax funding for local entities, like schools, at stake.
They raised questions about division policies, objectivity, ethical conduct, scope of authority, the proper performance of statutory duties, and open meetings and open records law requirements.
The head of the division, JoAnn Groff, has dismissed the complaints, according to reporting by The Colorado Sun. The Colorado Independent Ethics Commission rejected their plea for an investigation in April. The State Board of Equalization also did not take action, the Sun’s article said.
La Plata, Eagle and San Miguel counties are digging in and requesting an audit for a second time.
The La Plata County commissioners unanimously approved Tuesday a request to state officials: Gov. Jared Polis, the Legislative Audit Committee members, Sen. Don Coram and Rep. Barbara McLachlan.
“Why would La Plata County take on this issue?” Porter-Norton said.
It revolves around improving public trust in government, ensuring fair taxation and maintaining fair and transparent governance – all of which impact La Plata County, she said.
“We want a fair taxation system,” Porter-Norton said. “That system has to be fair, and people have to trust it. I don’t want anyone to pay more tax than they owe, but we don’t want them to pay less either. I think that’s partially called into question here.”
smullane@durangoherald.com
