BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
Petitioner, :
v. : INFORMAL DECISION
:
PROPERTY TAX
DIVISION OF THE : Appeal No. 86 1997
STATE TAX
COMMISSION OF UTAH, )
Respondent. :
_____________________________________
STATEMENT OF CASE
This
is an Appeal from a market value appraisal made by the Utah State Tax
Commission, Property Tax Division of the State of Utah for the property of
Petitioner located in XXXXX County, Utah.
The
matter was heard before Joe Pacheco, Commissioner, who acted as Hearing
Officer. XXXXX represented the
Respondent. Present and representing
the Petitioner were XXXXX, President of XXXXX, and XXXXX, Operations Manager of
XXXXX.
Upon
opening of the hearing, a preliminary motion was made by the Property Tax
Division that the hearing be dismissed because Petitioner did not timely file
the appeal request as required by statute.
The Property Tax Division presented evidence that the Petitioner did not
submit an appeal request until XXXXX, some 8 months after the statutory deadline
of XXXXX. However, the Property Tax
Division did not notify Petitioner of their intent to present a motion to
dismiss until today's scheduled hearing.
Petitioner appeared at this hearing at the scheduled time, after
traveling from California. The Hearing
Officer, upon hearing the arguments of the parties, ruled that the Informal
Hearing should proceed as scheduled.
Petitioner
argued that the assessment is improper because the valuation at XXXXX, is based
on XXXXX production and at a time when prices were high. Petitioner argued that XXXXX was a difficult
year for the oil business because of the drastic decline of oil and gas prices
during XXXXX and XXXXX of XXXXX. The
company did not see the affects of the decline until XXXXX. Petitioner feels that the overall decrease
in market values from XXXXX is somewhat in the neighborhood of 60 to 70
percent, and that there was no way of knowing by XXXXX what was happening in
the market place, and consequently what the real property value is as of the assessment
date. The Petitioner argued that they
are being assessed at an unfair market value.
However, they acknowledge that they will be assessed at lower values for
XXXXX, unless prices continue to decline so that they may never catch up to the
higher taxes paid on higher valuation at the assessment date unless prices
decrease. This position is based on
establishing a value at a time prior to the drastic fall in oil prices. Petitioner did not present written
documentation to support its position.
The
statutory lien date for assessment of oil and gas is XXXXX per statute, Utah
Code Ann. §59-5-52, and is based on the prior year production.
The
Respondent prepared the assessment as of XXXXX based on XXXXX production, and
has complied with all rules and statutes.
The
drop in oil and gas prices during XXXXX and XXXXX of XXXXX, is subsequent to
the lien date for the tax year in question.
DECISION AND ORDER
Based
upon the foregoing facts and the evidence presented at the hearing, it is the decision
of the Utah State Tax Commission that the Property Tax Division did properly
value the properties of XXXXX, XXXXX, in accordance with Section 59-5-52. The Petitioner presented no evidence to move
the Commission to change the XXXXX Assessment.
DATED
this 6 day of May, 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