BEFORE THE STATE TAX COMMISSION OF UTAH
v. ) ORDER OF APPROVAL
PROPERTY TAX DIVISION OF THE : Appeal No. 86 0349
STATE TAX COMMISSION OF UTAH, )
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:
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
Joe B. Pacheco G. Blaine Davis