Guest Blogger

John Watson

Less is more.  Across the nation we are seeing a preference for smaller homes especially in secondary home and resort market.  Appraisers point out that the market discounts are higher for large homes as people look to simplify and reduce fixed costs.

In the ranch space people are saying, I hear it all the time, “I don’t really need a big place and a huge ranch or acreage if it just has the live water I’m looking for, adjoins the National Forest and is less than $500,000”.  The answer is usually “good luck” because these gems usually trade hands in the private market.

Watson Land’s new listing; Camp Willow Creek, http://campwillowcreek.watsonland.com/   

is one of those rare deals.  I know because I was with Watson Land working with the owners, who are from rural Boulder CO, who wanted something special, not run of the mill that had strong water features, access to national forest and wildlands all in 61 acres.  This rare bird was a find that never made it to the internet or MLS.

It’s 61 alpine acres, adjoining the National Forest, with Willow Creek flowing through and a large deep pond.  The Bunkhouse is newer, built for Colorado mountain living by Coloradans who wanted a private, small, green, efficient and comfortable hideaway and its $489,000.

This is an interesting article from the Denver Post about the pervasive agricultural property tax classification and treatment of lands in the state of Colorado that have questionable agricultural enterprise value. 

Once an agricultural classification is granted, it’s difficult to take away.  Property owners don’t have to submit tax documents to show there is an agricultural enterprise, so the burden is on assessors to monitor the land use. 

Here in Custer County, Colorado, there are a multitude of landowners within the 35 acre rural subdivisions who do not participate in subdivision agricultural activities by fencing livestock under subdivision cattle grazing leases from their properties. 

Should the assessor continue business-as-usual by continuing ag status for these landowners who really have no agricultural enterprise on their land, or should present land use be more closely monitored by the assessor using criteria to determine the applicability of ag property tax status?

Colorado tax break intended for struggling farmers enriches developers, investors

By Christopher N. Osher and Eric Gorski
The Denver Post

Posted: 03/06/2011 01:00:00 AM MST

Updated: 03/06/2011 12:54:56 PM MST

Appraiser David Niles of the Jefferson County assessor’s office looks for signs of farming activity on vacant land off U.S. 36 in Jefferson County that is taxed as agricultural, receiving a significant tax break. In some cases, land designation has gone back and forth. (Joe Amon | The Denver Post)

First of two parts

One of the biggest players in Douglas County agriculture, at least for tax purposes, is not in the business of growing wheat or grazing cattle.

It builds subdivisions.

About one in six of the county’s parcels taxed as agricultural are owned by subsidiaries of Denver home builder MDC Holdings Inc.

In Broomfield County, another hotbed of suburban growth, a staggering 95 percent of the county’s agricultural parcels are controlled by developer, commercial or investor interests. No one owns more land on the agricultural tax rolls there than Pulte Homes of Bloomfield Hills, Mich., the nation’s largest homebuilder.

From Denver’s outskirts to exclusive mountain communities, the

story line is similar. Developers and corporations more interested in bulldozing land for houses and strip malls than raising cattle or crops are saving millions of dollars in taxes by taking advantage of a state law meant to help struggling farmers.

A Denver Post investigation of property-tax records sheds new light on the extent of the practice: Developers and firms with little or no ties to actual farming own at least 40 percent of the nearly 54,000 parcels classified as agricultural in eight Front Range counties.

The lenient tax structure saves developers, businesses and others who have no real mud on their boots an estimated $366 million a year in those counties, according to a Post analysis using data from CoStar Group, a Washington-based commercial real estate research firm.

In 10 mountain counties analyzed by The Post, developers and others that don’t meet the traditional definition of farmer or rancher own at least 9 percent of the 23,244 agricultural parcels.

The practice has continued unabated even though assessors have been complaining for decades. The latest proposed fix making its way through the legislature makes only marginal changes and would have no effect on how developers use ag

East of Castle Rock.Land taxed as agricultural surrounds a subdivision near Franktown. The parcel is among more than 1,000 Douglas County ag parcels owned by a subsidiary of Denver homebuilder MDC Holdings. (The Denver Post)

taxation.

An array of special interests finds common cause in keeping the status quo — from farmers who fear any weakening of the law to high-end resorts and homebuilders who contend higher taxes on undeveloped land will lead to higher home prices.

“The constituencies that currently benefit from the tax break don’t want a change,” said state Rep. Matt Jones, a Louisville Democrat. “And there’s not a strong constituency for the average taxpayer.”

Jones, a member of the House agriculture committee, said The Post’s findings show the issue deserves more attention.

“All taxpayers should pay their way, and developers should not get a big ag exemption when they’re holding property for speculation,” he said.

East of Thornton Boxed in by homes in Adams County sit 86 acres owned by Clear Channel Communications Inc. The media conglomerate pays about $86 in property taxes annually on those ag holdings. (The Denver Post)

Along the Front Range, big business also turns to the ag designation to slash tax bills — including the Clear Channel radio and communications conglomerate, Denver’s Furniture Row Cos. and IBM.

Former Gov. Dick Lamm, who held the office in the 1980s when voters approved a constitutional change that allows the ag tax breaks, thinks new restrictions are warranted.

“I think it is a shame, and it adds to sprawl,” Lamm said. “It is unfair, and it unjustly enriches people. It allows people to tie up land under so-called agriculture and use it as a speculator’s device.”

The financial impact depends on how counties navigate Colorado’s tax limitation system. In some counties, the money would go to lower everyone

Outside Centennial Dove Valley Business Park Associates owns about 64 agricultural lots of about 5 acres each near the Denver Broncos practice facility in Arapahoe County. One 3.6-acre parcel had a property tax bill of $68. (The Denver Post)

else’s property taxes. In others, the extra money would flow into the general funds of counties, special districts and any other taxing entity — and to school districts.

The state budget is also affected because the state must step up and help finance school districts when local tax revenue can’t cover the cost.

Developers defend their use of the agricultural tax break, saying it gives them flexibility while they wait for an ailing real estate market to rebound. They also say the tax break lowers the costs of new homes and predict they’ll have to pass increased costs on to homebuyers if the system is abolished.

“I don’t think the objective of Colorado policy ought to be to make homes less affordable,” said Steve

New Years Day I always watch the Rose Parade. The theme this year was “Building Dreams, Friendships and Memories”. As I watched and gazed out the window at the bright blue sky and beautiful mountains, I thought, that is why people want to come to Westcliffe. They want to do just that in Westcliffe. Westcliffe is a special place with lots to offer. You can’t “know it” in a visit or two. So use this time to learn more about The Wet Mountain Valley. Then when the time is right for you, you can make a choice that will last a life time and you can build dreams, friendships and memories. Watson Land Company is here to help.

Waiting for the big one

Heading up the trail

Summer has arrived! I don’t really know what happened to spring. It seemed like winter until two days before Memorial Day weekend; then—POW—it was summer.  It is fantastic!  The problem with summer in the Wet Mountain Valley is that there is so much to do you can’t possibly do it all.

 When you choose to come to Custer County Colorado, you choose the road less traveled.  There’s not a traffic light in the entire county. You can truly get back to what’s most important—things like serenity.  Custer County is blessed with real natural beauty. Majestic 14,000 foot peaks on one side and the pine-covered Wet Mountains on the other border of our valley.  We boast over 200,000 acres of public lands and 52 lakes.  This is the place for year round adventure.  So whether you explore with a scenic drive, or on foot, horseback or with a fishing pole in hand —- you’re going to want to come back again and again. 

If you enjoy festivals and community activities there always seems to be something happening. Click on the Calendar of our Chamber of Commerce for upcoming activities. www.custercountyco.com  or www.cliffhangersguide.com our newest Westcliffe magazine. Take a look at our featured property for June where you can fish or explore by foot or horseback. http://hiddenelkranch.watsonland.com . Come join us for some summer fun in Westcliffe Colorado!

Springtime views of the Wet Mountain Valley

Grazing on new spring grass

 

The anticipation of Spring in the Wet Mountain Valley is always exciting and this year is no different! Some of the “signs” reported this year include:

• Streams and creeks running full and fast
• Wild crocus starting to bloom
• Hummingbirds have appeared at windows to tell the people inside to put out their feeders
• Two bear sitings, one of which munched some horse grain in our barn!

What is springtime like where you live? Comment below.

Vimont Fields

Many people think they want to have a place in the mountains or in Colorado. Why consider Westcliffe? You can find lots of information about climate, topography and things like that. We want to talk about the more subtle things. You see when Westcliffe gets on your mind — you just have to be there.

The sheer beauty of the Wet Mountain Valley draws interesting and talented folks and propels them to find a way to make Westcliffe part of their life. This leads to some interesting scenarios that we find fascinating. For instance where else can you find Search and Rescue teams made up of sixty-something people hiking up and down 14,000 foot peaks looking for twenty-something folks who have gone beyond there limits? Where else can you go to an event and find cars being parked by a retired Army general and an orthopedic surgeon?  Where else can you just want to find out if you can grow a tomato and end up in the largest garden club in the State?  So many people are interested in growing things and beautifying our environment that the High Altitude Garden Club has become a wonderful part of our community.Westcliffe is not for everyone. As Kermit the Frog would say, “It’s not easy being green.”

To live in Westcliffe and enjoy it you need a spirit of adventure and an appreciation of little things. While enjoying a beautiful view out of every window or around every bend and having wild animals as part of your daily life, you can’t be bothered by a few things you don’t find in the city. I had twenty-two deer in my front yard yesterday. I’ve had to stop and wait for them to leave before pulling into the garage. A friend couldn’t get into her barn last summer because a bear was napping in the doorway!   Most of our roads are dirt. Instead of spring we have “mud season”. I must say I would rather drive in snowy and icy conditions here, than in the city. Here you might slide off the road, but you will probably not hit another car and most likely someone you know will stop and help with a smile. Westcliffe  doesn’t have a lot of people. There are about 3500 people in Custer County. We don’t even have a traffic signal!

So why Westcliffe?  We do have a very artistic community and our Art for the Sangres show in September is a nationally recognized art show for the benefit of the San Isabel Land Trust. Music also abound with High Mountain Hay Fever Blue Grass festival and Western Days Music Festival. We have live theater all summer and the Wet Mountain Stampede and Rodeo in mid July. If you are not into events there are so many trails to hike and ride and lakes for fishing in the Sangre de Cristo Mountains and the Wet Mountains that I don’t think you could do them all.

If you live here the thing that gets to you is that you don’t want to leave because  you might miss something. What if, while you are gone, we have the perfect sunset, or the duck that landed on your pond comes back, or the deer that touched noses with your cat returns to eat your geraniums? If these things make you smile, Westcliffe could get on your mind too. So you need to see and decide for yourself.

In future writings we will go into details about things we appreciate. In the meantime, post a comment below  or just   email to info@watsonland.com  or give us a call 719-783-2803.