86-1552 - Centrally Assessed

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX,

Petitioner, :

v. : ORDER OF APPROVAL

:

PROPERTY TAX DIVISION OF THE : Appeal No. 86 1552

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). XXXXX (Petitioner) asserted that the subject property should have a lower taxable value as of the lien date, XXXXX.

Petitioner and Respondent agreed to the following facts: XXXXX supplied erroneous information to the Tax Commission because of a problem of recognition of suspense revenue that was inherited during the XXXXX purchase. This suspense revenue is revenue owed to royalty owners but which has not been paid to them for reasons such as a change of name or address of the royalty owner. When XXXXX and XXXXX entered a sale agreement, XXXXX was given the responsibility of the suspense revenue. XXXXX needed to recognize the funds in order to pay the money out so XXXXX listed the funds as revenue under the specific royalty owner's name. This revenue had already been reported during the actual year sold and had already been taxed under XXXXX.

The original and proposed values are as follows:

Original Adjusted

Assessment Assessment

Value of Oil & Gas $$$$$ $$$$$

Personal Property $$$$$ $$$$$

TOTAL $$$$$ $$$$$

The difference amounts to $$$$$. The difference multiplied by the tax rate of 0.011194 results in a downward tax dollar adjustment of $$$$$. XXXXX County had standing to object to the assessment of the subject property pursuant to Utah Code Ann. §59-7-12 (1953). XXXXX County elected not to show cause.

ORDER

The Tax Commission, after reviewing the proposed adjusted assessment, hereby accepts the adjusted assessment in lieu of a Formal Hearing and finds the taxable value of the subject property as of XXXXX, to be set forth above.

The original assessment by the Property Tax Division of the Utah State Tax Commission is therefore set aside and the Property Tax Division is ordered to adjust its books in accordance with this decision.

DATED this 4 day of February, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

ABSENT

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner