BEFORE STATE TAX COMMISSION OF UTAH
Petitioner, : FINAL ORDER
PROPERTY TAX DIVISION, :
UTAH STATE TAX COMMISSION :
Respondent. : Case No. 87-0553
STATEMENT OF CASE
The above-captioned matter involves an appeal to the Utah State Tax Commission (Commission) from the assessment by Respondent, Property Tax Division of the Commission ("Division"), of the property of Petitioner, XXXXX ("XXXXX"), for the XXXXX tax year. Petitioner asserts that the subject property should have a lower taxable value as of the lien date, XXXXX. By Stipulation dated XXXXX, Petitioner and Respondent have agreed as follows:
(1) As the result of certain calculation and reporting errors, the "Indicated XXXXX Utah Assessment" for Petitioner's property, as shown on the worksheets prepared by the Division for the XXXXX tax year, must be adjusted to arrive at the fair market value of the property;
(2) The items for which adjustments are required include without limitation the following:
(a) Allocation of intangible plant costs and net interest expenses between Utah and non-Utah property;
(b) Adjustment of the amount of property classified as construction work in progress (XXXXX);
(c) Adjustment of the XXXXX value for exempt property attributable to certain Utah municipalities;
(d) Adjustment of the useful life of and depreciation percentage for the plant in service to conform with reported information;
(e) Adjustments for obsolescence (superadequacies) for certain property included in the plant in service, such as excess water purchases, excess capacity in the main water supply line, and oversized and unused transmission facilities;
(f) Adjustments to certain income calculations based upon a new study of comparable companies by the Division; and
(g) Adjustments to the income indicators of value based upon the foregoing and other adjustments to the cost indicator of value.
(3) When these adjustments are made the fair market value of Petitioner's Utah property for the XXXXX tax year, for purposes of computing the fee in lieu of ad valorem property taxes to be paid by Petitioner pursuant to Utah Code Ann. §11-13-25 (1953 as amended) (XXXXX) is $$$$$. The Stipulation was entered into by Petitioner and Respondent solely for purposes of settlement and represents a compromise of many disputed issues, including without limitation those discussed herein. Accordingly, the Stipulation was made without limitation or waiver of the ability of any party to raise any of the specific issues addressed herein or any other issues with respect to any assessment year other than XXXXX. Both Petitioner and Respondent expressly disclaimed any such limitation or waiver and specifically reserved the right to raise such issues as they may in their sole discretion deem appropriate with regard to tax years other than XXXXX. XXXXX Counties (collectively, the Counties) have standing to object to the assessment of the subject property pursuant to Utah Code Ann. §59-2-1013 (1953, as amended) (XXXXX). Pursuant to the Commission's Order to Show Cause XXXXX, the Counties were given 10 days to file a written response showing reasonable cause why the Commission should not accept the valuation of the subject property proposed in the Stipulation. Since no written responses were filed by any of the Counties, the Commission construes their failure to respond as an acceptance by each County of the proposed valuation.
Based upon the Stipulation of the parties and the absence of any timely written response to the Commission's Order to Show Cause, the Commission hereby finds that as the result of certain calculation and reporting errors, including without limitation those described in the Stipulation, adjustments must be made to the Division's valuation of Petitioner's Utah property for the XXXXX tax year. After making these adjustment, the Commission finds that the fair market value of Petitioner's Utah property for the XXXXX tax year is $$$$$. After adjustment for the value of Petitioner's separately assessed rail system property, the Commission finds that the fair market value of Petitioner's Utah property subject to assessment is $$$$$. The County Auditors of the respective Counties in which Petitioner's properties are located are hereby directed to adjust their assessment rolls to conform with the assessed fair market value of $$$$$ established for Petitioner's Utah property by this Order. The County Treasurers of the respective Counties in which Petitioner's properties are located are hereby directed to redetermine the amount of the fee in lieu of ad valorem property taxes payable by Petitioner pursuant to XXXXX XXXXX, based upon this adjusted assessed value of Petitioner's property, and to refund to Petitioner the amount of any excess fees paid by Petitioner with respect to the XXXXX tax year.
DATED this 3 day of August, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
R. H. Hansen Roger O. Tew
Joe B. Pacheco G. Blaine Davis