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 § 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.