BEFORE THE UTAH STATE TAX COMMISSION
Petitioner, : ORDER
: Appeal No. 90-1322
PROPERTY TAX DIVISION OF THE :
UTAH STATE TAX COMMISSION, : Tax Type: Cent. Assessed
STATEMENT OF CASE
This matter came before the Utah State Tax Commission upon a Petition for Reconsideration jointly filed by the Respondent and affected counties on XXXXX, as a result of the Commission's final decision and order issued XXXXX.
1. In their Joint Petition for Reconsideration, the Respondent and Counties argued that the Commission erred in reaching its final conclusion of value of the subject property by not including construction work in progress ("CWIP") into that calculation. Specifically, the parties alleged that a "CWIP" value of $$$$$ must be added to the final value as determined by the Commission of $$$$$ for a final value of $$$$$.
2. The "CWIP" issue, as raised by the Respondent, is an issue that was considered by the Commission when it made its original determination to accept the income stream as determined by the Respondent. In so doing, the Commission then analyzed the Respondent's income stream and determined that embedded in the income stream was a reserve for replacements which accounted for the "CWIP".
Upon further review, however, the Commission finds that there are additional adjustments to the income stream which should be made based upon evidence presented during the course of the formal hearing. Specifically, the Commission finds that the percentage of total capital expenditures of XXXXX which were actually growth capital expenditures was XXXXX, and based upon the finding by the Respondent that the present value of long term "CWIP" for the Petitioner was $$$$$, the actual value of long term "CWIP" which must be added to the income stream is $$$$$.l
DECISION AND ORDER
Based upon the foregoing, the Tax Commission amends its finding as to the fair market value of the subject property as of the lien date XXXXX from $$$$$ to $$$$$. The amount allocable to the state of Utah is found to be XXXXX, for a Utah value of $$$$$. It is so ordered.
DATED this 30 day of September, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
W. Val Oveson*