The following rules apply to all organizations/properties
exempted/applying for exemption as owned and used for religious
purposes.
A.
DEFINITIONS
1. "Declaration" means a written document
embodying or displaying a positive, explicit, or formal statement.
2. "Gross rental income", for the purposes of
39-3-106.5 (1) and (1.5), 39-2-117 (1)(b)(II), and 39-2-117 (3)(b)(II)(A),
C.R.S., means any and all income received by the owner for the use of the
property from persons whose activities:
(a) do
not fall within the religious mission of the owner and are not for religious
purposes, strictly charitable purposes, or schools; or
(b) are for strictly charitable purposes or
schools but the agreement between the owner and the user does not meet the
requirements of 39-3-116 (2)(c), C.R.S.
3. "Religious mission" means a ministry
commissioned by a church or some other religious organization for the purpose
of propagating its faith or carrying on humanitarian work.
B.
GENERAL PROVISIONS
1. The declaration must include the owner's
religious mission and purposes and a list of all uses of the property which are
in furtherance of the owner's religious mission. When filing an application,
that list shall include the name of each user, as defined in Rule I.A.27.,
including the owner, and a brief description of the use(s) by each user during
the previous twelve months or that portion of the twelve-month period for which
such property was owned by the owner making application.
When filing a declaration with an annual report, that list
shall include the name of each user, as defined in Rule I.A.27., including the
owner, and a brief description of the use(s) by each user during the previous
calendar year, or that portion of the previous calendar year for which such
property was owned by the owner filing the annual report.
2. Owners of property exempt as owned and
used for religious purposes under 39-3-106, C.R.S., who allow their property to
be used by another entity to further the religious mission of the owner or of
another religious organization, are not limited to receiving one dollar per
year plus an equitable portion of the reasonable expenses from those users.
When such property, exempt under 39-3-106, C.R.S., is used by
other entities for schools or for strictly charitable purposes, the owner is
limited to receiving one dollar per year plus an equitable portion of
reasonable expenses.
3.
"Complete list of all uses of the property other than by the owner thereof"
shall include the name of each user and a brief description of the use(s) by
each user during the previous calendar year. This list should not include those
uses which are claimed to be part of the owner's religious mission.
This list shall be divided into two sections. The first
section shall include the names and a brief description of each type of use by
those users who operate for strictly charitable purposes, for religious
purposes that are not part of the owner's religious mission, or as
schools.
The second section shall include the names and a brief
descriptions of each type of use by those users who do not operate for
religious purposes, strictly charitable purposes, or as schools.
4. In determining whether a user
can be included as operating for religious purposes, strictly charitable
purposes, or as a school, the religious organization shall consider whether
that user meets the criteria for exemptions set out in 39-3-106 to 113.5 and
39-3-127.7, C.R.S. and these rules, and whether any agreement between the owner
and the user meets the tests set out in 39-3-116, C.R.S. and Rule II. B.
2.
5. Any use for private gain or
corporate profit cannot be considered as a qualifying part of an owner's
religious mission nor as meeting the test for qualifying use in 39-3-116
(2)(b), C.R.S. All such uses must be included as non-qualifying uses for the
purpose of computing incidental use under 39-3-106.5 (1) or (1.5),
C.R.S.
6.
Calculating
Adjusted Hours - See Rule I.B.27.
7. An owner need only account for income from
unrelated trades or businesses that are not owned and used for religious
purposes, strictly charitable purposes, or as a school when figuring gross
income from unrelated trades or businesses for the purposes of 39-3-106.5
(1)(b)(I) or (1.5)(b)(I), C.R.S.
9.
An organization exempted under the provisions of 39-3-106 and/or 39-3-106.5 (1)
or (1.5), C.R.S., may not file an annual report until all previously due annual
reports are filed with the appropriate fee.
An annual report which is not filed with the appropriate fee
by July 1, of the year following its issue, shall operate as the forfeiture of
any right to claim exemption of previously exempt property from general
taxation for the year in which failure to file such annual report first
occurred and shall preclude the filing of any annual report for subsequent
years.
A separate annual report must be filed for each year in which
the owner wishes to maintain an exemption.
11. For properties that are claimed to be
owned and used for religious purposes, the Administrator will consider the
property to be sufficiently used for religious purposes when either:
(a) The owner can demonstrate sufficient
actual, physical use of the subject property for religious purposes,
or;
(b) The owner can demonstrate
that the property has been physically used at least once during each twelve
month period, or any lesser time period if the applicant has not owned the
property for the entire twelve month period, and can document sufficient
continuing indicators of intent for the remainder of that year or portion
thereof.
12. When an
applicant has not shown sufficient actual, physical use of a property to
satisfy Rule II. B. 11(a), the Administrator will also consider "indicators of
intent". "Indicators of intent" are the owner's off-site activities which
establish its specific intent to further use the subject property for religious
purposes.
Indicators of intent will be determined by asking questions
which include, but are not limited to:
(a) How was the property acquired?
(b) How long has this organization owned the
property?
(c) Has the owner been
actively involved in dealing with local government bodies in the pursuit of
planning, zoning or other permit issues?
(d) Has the owner set up a special fund to
finance the project, and is it actively soliciting money for that
fund?
(e) Has the owner been
working with financial institutions and/or working on the sale of
bonds?
(f) Has the owner set up a
committee or other structure to plan and implement the plan of the use of the
property, and is the committee actively dealing with that issue?
(g) Is the owner actively seeking any
necessary clearances from denominational or synodical bodies?
(h) Has the owner employed architects or
contractors in preparation for actual construction work on the
property?
(i) Have anticipated
starting and completion dates been set for any improvement projects?
(j) What is the size of the owning
organization and what is the size of any contemplated project?
(k) Has the owner had the property listed for
sale?
(l) Has the owner been using
the property, or allowing the property to be used, for monetary gain?
(m) Are there any other unusual or urgent
circumstances that need to be considered?
13. In cases where there is not sufficient
actual physical use of a property, but there are sufficient continuing
indicators of intent to use the property for religious purposes, an exemption
for property owned and used for religious purposes will become effective upon
the earlier of either:
(a) the date of the
first actual physical use for religious purposes, or
(b) the date indicators of intent began, so
long as the first actual use for religious purposes occurs within one year of
that date.
Nothing in this rule shall allow an exemption to become
effective prior to the year prior to the one in which application is
made.