AGO 84-19.

• Case Date: November 14, 1984
• Court: Colorado

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Colorado Attorney General Opinions 1984. AGO 84-19. November 14, 1984Department of Law Attorney General Opinion FORMAL OPINION of DUANE WOODARD Attorney General Opinion No. 84-19 AG Alpha No. LO AD AGANJ Morgan Smith Executive Director Department of Local Affairs 1313 Sherman Street, Room 518 Denver, CO 80203 RE: Whether property that is used for mining operations or oil and gas production and managed by the State Board of Land Commissioners is subject to ad valorem tax.Dear Mr. Smith: This opinion letter is in response to your letter of July 6, 1984, in which you inquired about mining operations or oil and gas production from lands owned by the State of Colorado and managed by the State Board of Land Commissioners. Your inquiry is whether the property described above is taxable under section 39-3-112(1) and (3), C.R.S. (1982), or is exempt under section 39-3-112(5), C.R.S. (1982). QUESTION PRESENTED AND CONCLUSION Are mining operations and oil and gas production from lands owned by the state and managed by the State Board of Land Commissioners taxable under section 39-3-112(1) and (3), C.R.S. (1982) or exempt under section 39-3-112(5), C.R.S. (1982)? Mining operations and oil and gas production from lands owned by the state and managed by the state are taxable presuming these are lands leased to private operators. ANALYSIS Section 39-3-112(1), C.R.S. (1982) provides that when any real property which is exempt from taxation (state property is exempt from taxation under section 39-3-101(1)(d), C.R.S. (1982)) is leased -- and used by a private individual, association, or corporation in connection with a business conducted for profit, the lessee or user thereof shall be subject to taxation in the same amount and to the same extent as though the lessee were the owner of such property. Section 39-3-112(3), C.R.S. (1982) provides that the taxation of mines, oil and gas, or geothermal leaseholds shall be determined pursuant to sections 39-6-101 to 39-6-115, C.R.S. (1982) and sections 39-7-101 to 39-7-108, C.R.S. (1982) and that section 39-3-112, C.R.S. (1982) shall not vary this taxation in any manner. Section 39-3-112(5), C.R.S. (1982), the section which appears to be in conflict with the preceding sections is probably not applicable if read and interpreted literally. The section reads as follows: This section...