BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, )
:
Petitioner, )
:
v. ) ORDER OF APPROVAL
:
)
PROPERTY TAX
DIVISION OF THE : Appeal No. 86 0349
STATE TAX
COMMISSION OF UTAH, )
:
Respondent. )
_____________________________________
STATEMENT OF CASE
This
is an appeal to the Utah State Tax Commission from the XXXXX assessment of the
subject property by the Property Tax Division of the Utah State Tax Commission
(Respondent). Petitioner asserted that
the subject property should be reduced in value.
Petitioner
and Respondent agreed to the following facts: Effective XXXXX, the Federal
Energy Regulatory Commission (FERC) Opinions 154-B and 154-C allowed oil
pipelines to adjust the rate base from trended cost less depreciation to a
modified method under the new opinion.
The modified method allows a pipeline to earn on trended costs less
depreciation on the equity portion of the investment in plant and on
depreciated original cost on the debt portion.
Respondent was unaware that Petitioner had timely filed with FERC and
was allowed to adjust the rate base.
Petitioner and Respondent agreed to reduce the cost indicator value.
It
was determined that all income indicators of value were not considered in the
original appraisal. Petitioner and
Respondent agreed to an adjustment to the income indicator of value.
The
market value of the non-operating properties was determined in the original
appraisal without the benefit of legal descriptions. They have been subsequently adjusted according to location, accessibility
and comparable values.
The
revised cost and income indicators of value were reviewed, correlated and the
estimated market value allocated to Utah (slight adjustment on Utah percentage)
as follows: (See attachment)
The
summary of the original assessment and the revised assessment as set forth in
the attachment is as follows:
Original Revised
Assessment Assessment
Utah Operating Properties $$$$$ $$$$$
Utah Non Operating Properties $$$$$ $$$$$
TOTAL $$$$$ $$$$$
XXXXX,
XXXXX, XXXXX and XXXXX Counties had standing to object to the assessment of the
subject property pursuant to Utah Code Ann. § 59-7-12 (1953). An Order to Show
Cause was sent to each of the above mentioned Counties on XXXXX, ordering the
counties to respond if they objected to the revised assessment. XXXXX, XXXXX, XXXXX and XXXXX Counties
elected not to respond.
DECISION AND ORDER
The
Tax Commission, after reviewing the stipulation, hereby accepts the stipulation
in lieu of a formal hearing and finds the market value of the subject property
as of XXXXX, to be as set forth above.
The total estimated market value of the subject property for XXXXX is
$$$$$.
The
XXXXX, XXXXX, XXXXX and XXXXX County Auditors are ordered to adjust their
records in accordance with this Order of Approval.
DATED
this 21 day of January, 1987.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner