Appeals Court: Wrong Standard Used In Denying YMCA's Property Tax Exemption

In Larimer County Board of Commissioners v. Colorado Property Tax Administrator, (CO App., April 11, 2013), a Colorado state appeals court held that the Board of Assessment Appeals applied the wrong legal test in denying the YMCA (except for its chapels and religious activity center) a religious purposes exemptions from property taxes for its two extensive recreational sites. The court concluded that the appeals Board had not applied the statutory presumption in favor of an exemption where an applicant has filed a declaration that sets forth its religious mission and purposes. Instead the Board's engaged in a detailed examination of a number of factors in determining that the YMCA's uses were not solely and exclusively religious.  The court said that this approach fosters an excessive government entanglement with religion. Also the Board erred in not considering whether the YMCA qualified for a partial charitable use exemption.