BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX, )
:
Petitioner )
: DECISION
FROM
v. ) INFORMAL HEARING
:
UTAH STATE TAX
COMMISSION ) Appeal No. 85-55-0052
PROPERTY TAX
DIVISION :
)
Respondent :
_____________________________________
An
Informal Hearing was held on XXXXX.
XXXXX and XXXXX, Commissioners heard the matter for an in behalf of the
Commission. The Petitioner was
represented by XXXXX, and the Respondent was represented by XXXXX, XXXXX, and
XXXXX.
STATEMENT OF CASE
This
case involves the calculation of "net proceeds" on Utah State Tax
Commission Form TC-205, Item No. 20. On
the instructions to the form, Item 20 states "Net Proceeds":
Show as the first figure the year for which this return is made. The amount is Item 7 less Item 9. If deductions are in excess of receipts, the
amount to show is zero. Show as the second figure the year immediately
preceding, and as the third figure the year preceding the second. If no net proceeds are shown for any year,
the amount should be states [sic] as none." (emphasis added)
The
Petitioner argued the lack of statutory basis for using zero for years of loss
instead of negative figures.
FINDINGS AND CONCLUSION
The
Tax Commission, based upon the argument of counsel finds as follows:
1.
Utah Code Ann. §59-5-48 defines net annual proceeds as "gross proceeds
realized during the preceding calendar year" less a number of allowable
deductions which are listed in the statute.
2.
There is no current reference in Tax Commission rules concerning the method for
valuing metalliferous mines. Property
Tax Division personnel have researched Tax Commission records and state archive
records back into the XXXXX and they have been unable to find records
concerning this issue.
3.
Non-metalliferous mines and other property valuation practices by the Property
Tax Division allow the inclusion of negative values in the calculations for
value.
4.
The Commission fails to find in the referenced statute or in the arguments
presented by the Respondent, justification to continue the practice of not
allowing negative values when using net annual proceeds as part of the
valuation of metalliferous mines.
DECISION
The
Property Tax Division of the State Tax Commission is, therefore, directed to
revise the assessment of the Petitioner.
The Respondent is further directed to prepare a rule that complies with
the state statute but which also insures that the property will be valued at
its highest and best use.
DATED
this 1 day of November, 1985.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
Mark K.
Buchi Gary
C. Cornia
Chairman Commissioner
R. H. Hansen Roger
O. Tew
Commissioner Commissioner