What Is Possessory Interest?
A private property interest 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. Any use or occupancy of government property by any person, partnership, corporation, limited-liability corporation (LLC) or other legal entity for the purposes of generating revenue from a business or operation.
Examples of Taxable Possessory Interests:
- Private concessionaires using government owned land, improvements, or personal property that are not operating pursuant to a management contract as defined in 39-1-103(17)(a)(III), C.R.S.
- Government land and improvements used in the operation of a farm or ranch.
- Government land, improvements, and/or personal property used in the operation of ski or recreational areas.
- Land underlying privately owned cabins or other residential property located on government land that are rented.
- Recreational use of lakes, reservoirs, and rivers in a revenue-generating capacity.
- Land, improvements, and personal property at a tax-exempt airport.
- Other government property leased to private parties and used in a revenue generating capacity.