By Jared Jacang Maher, FACE THE STATE
The Denver Post recently has been looking into how certain wealthy landowners in Colorado are paying next to nothing in taxes on their multimillion dollar properties thanks to the state’s broad definition of agricultural land. The agricultural designation, originally intended for working ranchers and farmers, is now being utilized by developers as a selling point for luxury mountain homes. One 336-acre ranch that was part of a $24 million sale “pays $201 in property taxes,” writes Post reporter Nancy Lofholm. “Another one of the ranches, on 679 acres, pays $275, and a 441-acre ranch pays $255.”
But anyone looking for a telling example of a landowner who has taken advantage of this generous tax status need look no further than Colorado’s incoming governor. John Hickenlooper owns 225 acres in the mountains of Park County. His annual property-tax bill, according to county assessor records: $75.
(Read Face the State’s past articles about Hickenlooper’s property in Park County here, here, and here).
In 2000, Hickenlooper and business partner Lee Driscoll obtained 660 acres in a land swap with the U.S. Forest Service with the understanding that the property would be protected from development through Colorado’s conservation easement program, which allows landowners to earn additional credits against their state income taxes.
But at the county level, Hickenlooper and Driscoll were still required to pay the standard property-tax rate for undeveloped property. Driscoll fought to get the land designated agricultural, which would be taxed at a much reduced rate.
Park County Assessor Dave Wissel recalls the pair’s approach being “backasswards,” he says. Normally, a property is already designated “agricultural” before a conservation easement is placed on it. But Hickenlooper and Driscoll already had begun placing easements on certain sections of the land.
Plus, “agricultural” status was traditionally for cattle ranchers and farmers. Hickenlooper’s and Driscoll’s land in the mountainous area south of the Town of Bailey was appropriate for neither. “I said well if you spruced it up, you could get some use, try to get some portion of it that’s feasible and get a grazing program, but that wasn’t really feasible,” says Wissel. The next option was to get the land into a program called “Forest Agriculture,” administered through the Colorado Forest Service. Originally established for Christmas Tree farmers, the program says the property owner must produce at least $200 of wood product a year.
In 2003, the Park County Board of commissioners passed Hickenlooper’s request to rezone his property from “conservation recreation” to “agricultural,” thereby reducing taxes significantly. Since 2002, Hickenlooper has deducted $1.1 million from his federal taxes and hundreds of thousands more in state tax credits by Park County through the conservation easements claims. A five-acre subdivision cut from the center of Hickenlooper’s 225-acre conservation easement allows for the construction of a cabin and other buildings.
Hickenlooper and Driscoll have not responded to inquiries by Face the State. There is no indication that any of their transactions were outside Colorado law. Meanwhile, the long-standing controversy over these property-tax policies continues at the State Capitol.


