89-0897 - Centrally Assessed

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

Petitioner : ORDER OF CLARIFICATION

:

:

v. :

: Appeal Nos. 92-1377

PROPERTY TAX DIVISION, : 91-1160

UTAH STATE TAX COMMISSION, : 90-1081

: 89-0897

Respondent. : 88-1335

_____________________________________

Having reviewed the parties' joint Motion for Clarification and for good cause shown, the Commission orders the following clarification:

On XXXXX, the Commission entered a final decision in XXXXX v. Property Tax Division, Appeal Nos. 85-0074 & 86-0255 (XXXXX) (hereinafter "XXXXX Decision). In Paragraph 4 of the Findings of Fact in the XXXXX Decision, the Commission ruled that in determining the cost indicator of value for XXXXX's property for tax years XXXXX and XXXXX "the net book value should be reduced by the amount of the DFIT in accordance with the FERC practice." XXXXX Decision at 4.

On XXXXX, the Commission orally communicated to the parties that it was of the opinion that the DFIT issue had been addressed with respect to XXXXX in its XXXXX Decision. The Commission stated that it did not see any reason to change its previous determination, as to XXXXX, that in determining the cost indicator of value, "the net book value should be reduced by the amount of DFIT."

The Commission indicated that in each of the tax years subsequent to the XXXXX Decision, the DFIT adjustment should have been mechanically applied to reduce the cost indicator in the same manner in which it was applied by the Commission in its XXXXX Decision and by the Division in its assessment of XXXXX for tax year XXXXX. The Commission further indicated that this clarification was limited to XXXXX and the tax years under appeal before the Commission.

In response to the Motion for Clarification filed by the parties on XXXXX, we now confirm our prior oral communication. The DFIT adjustment should have been mechanically applied to reduce the Division's cost indicator in each of the captioned tax years in the same manner in which it was applied by the Commission in the XXXXX Decision and by the Division in its assessment of XXXXX for tax year XXXXX.

This order of clarification applies only to XXXXX and only to the above-captioned appeals.

DATED this 21 day of December, 1992.

BY ORDER OF THE UTAH STATE TAX COMMISSION

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe P. Pacheco S. Blaine Willes

Commissioner Commissioner