(1) Improvements shall be appraised and valued separately from land, except improvements other than buildings on land which is used solely and exclusively for agricultural purposes, in which case the land, water rights, and improvements other than buildings shall be appraised and valued as a unit.
(1.1) (a) (I) Water rights, together with any dam, ditch, canal, flume, reservoir, bypass, pipeline, conduit, well, pump, or other associated structure or device as defined in article 92 of title 37, C.R.S., being used to produce water or held to produce or exchange water to support uses of any item of real property specified in section 39-1-102 (14), other than for agricultural purposes, shall not be appraised and valued separately but shall be appraised and valued with the item of real property served as a unit.
(II) For purposes of this section, valuing the water rights and the item of real property served by the water rights "as a unit" means that any increase in value of the property served with water made available directly, or by exchange, by the use of any dam, ditch, pipeline, canal, flume, reservoir, bypass, conduit, well, pump, or other associated structure or device, as defined in article 92 of title 37, C.R.S., shall be included in the valuation of the real property served by the water rights.
(b) The general assembly finds and declares that the value of water rights, and any dam, ditch, pipeline, canal, flume, reservoir, bypass, conduit, well, pump, or other associated structure or device, as defined in article 92 of title 37, C.R.S., used or held to produce or exchange water, for taxation purposes, should be recognized as a contribution to the value of all of the interests in the entire property served thereby and that the separate valuation of such water rights could result in double taxation. The provision of this subsection (1.1) shall not be construed to exempt any water rights from taxation but shall be construed as setting forth procedures for the valuation thereof. (2) and (3) Repealed.
Source: L. 64: R&RE, p. 695, § 1. C.R.S. 1963: § 137-5-5. L. 75: Entire section amended, p. 1474, § 2, effective July 1. L. 76: Entire section amended, p. 771, § 1, effective May 26; (1) amended, p. 760, § 18, effective January 1, 1977. L. 77: (3) added, p. 1753, § 1, effective June 19. L. 79: (1) amended, p. 1404, § 2, effective July 1. L. 83: (1.1) added, p. 1503, § 1, effective May 25. L. 87: (2) and (3) repealed, p. 1304, § 1, effective May 20. L. 96: (1.1) amended, p. 468, § 1, effective April 23.
Cross references: For manner of determination of actual value of agricultural lands, see § 39-1-103 (5).
Notes of Decisions
RTV, L.L.C. v. Grandote Int'l Ltd., 937 P.2d 768 (Colo. Ct. App. 1996).
· cites it 3× “Section 39-5-105, C.R.S. (1994 Repl.Vol. 16B) requires that, with specific exceptions not relevant here: “[I]mprovements shall be appraised and valued separately from land _” This was done here.”
Laduke v. Cf & I Steel Corp., 785 P.2d 605 (Colo. 1990).
· cites it 2× “Section 39-5-105(1), on the other hand, requires that most improvements be valued separately from the land.”
Cabot Petroleum Corp. v. Yuma Cnty. Bd. of Equalization, 847 P.2d 152 (Colo. Ct. App. 1993).
· cites it 2× “However, we note that improvements are required to be appraised and valued separately from land for property tax purposes, see § 39-5-105(1), C.R.S. (1982 Repl.Vol. 16B), and separate and distinct taxable property had been omitted from the assessment of property taxes in that…”
MJB Motels LLC S amarah Investments LLC Meek Enter. LLC Tosh Amir MW Real, 2023 CO 26 (Colo. 2023).
· cites it 2× “, § 39-5-105(1), C.R.S. (2022) (requiring that improvements be valued separately from land); § 39-1-102(14) (listing “[a]ll lands” and “[i]mprovements” in separate subsections in the definition of real property); § 39-1-104(11)(b)(I) (listing as a separate unusual condition the…”
Fid. Castle Pines, Ltd. v. State, 948 P.2d 26 (Colo. Ct. App. 1997).
· cites it 2× “However, while these statutes provided special treatment for certain classes of property, for example, deferment of an increase in value for remodeled residential property, see § 39-5-105(2)(a), C.R.S. (1982 Repl.Vol. 16B), or authorizing a special method of valuing real…”
Jankovic v. Jefferson Cnty Bd (Colo. Ct. App. 2025).
· cites it 2× “§ 39-5-105(1); 3 ARL § 1, at 1.1. ¶4 The assessment of real property occurs in two phases: (1) valuation and (2) classification.”
— Colo. Rev. Stat. § 39-5-105(1) — 5 cases
Laduke v. Cf & I Steel Corp., 785 P.2d 605 (Colo. 1990).
“Section 39-5-105(1), on the other hand, requires that most improvements be valued separately from the land.”
Cabot Petroleum Corp. v. Yuma Cnty. Bd. of Equalization, 847 P.2d 152 (Colo. Ct. App. 1993).
“However, we note that improvements are required to be appraised and valued separately from land for property tax purposes, see § 39-5-105(1), C.R.S. (1982 Repl.Vol. 16B), and separate and distinct taxable property had been omitted from the assessment of property taxes in that…”
MJB Motels LLC S amarah Investments LLC Meek Enter. LLC Tosh Amir MW Real, 2023 CO 26 (Colo. 2023).
“, § 39-5-105(1), C.R.S. (2022) (requiring that improvements be valued separately from land); § 39-1-102(14) (listing “[a]ll lands” and “[i]mprovements” in separate subsections in the definition of real property); § 39-1-104(11)(b)(I) (listing as a separate unusual condition the…”
Jankovic v. Jefferson Cnty Bd (Colo. Ct. App. 2025).
“§ 39-5-105(1); 3 ARL § 1, at 1.1. ¶4 The assessment of real property occurs in two phases: (1) valuation and (2) classification.”
— Colo. Rev. Stat. § 39-5-105(2)(a) — 1 case
Fid. Castle Pines, Ltd. v. State, 948 P.2d 26 (Colo. Ct. App. 1997).
“However, while these statutes provided special treatment for certain classes of property, for example, deferment of an increase in value for remodeled residential property, see § 39-5-105(2)(a), C.R.S. (1982 Repl.Vol. 16B), or authorizing a special method of valuing real…”
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