Possessory Interests
Possessory interests are private property interests in
government-owned property or the right to the occupancy and
use of any benefit in government-owned property that has
been granted under lease, permit, license, concession,
contract, or other agreement. In simplest terms, it is the
right to possess and use government-owned property for a
defined period of time.
Some examples of possessory interests are:
Ski areas on public
land
Land, improvements
and personal property used at a government-owned airport
Private companies
using government-owned land, improvements and personal
property for profit
(excluding management contracts)
Private cabins on
rented government land
Possessory Interests are valued in accordance with the
specific standards and procedures established in ยง
39-1-103(17)(a), C.R.S.
Land owned by the government and used for ranching and farming by private
parties is a taxable possessory interest. In most cases, the actual value of
the interest is equivalent to the annual rental amount. A Level of Value
adjustment factor, which is provided by the Property Tax Administrator, is
applied to the actual value.