BEFORE THE UTAH STATE TAX
COMMISSION
____________________________
XXXXX
XXXXX )
Petitioner, : ORDER OF APPROVAL
v. :
:
PROPERTY TAX
DIVISION OF THE : Appeal No. 92-1308
UTAH STATE TAX COMMISSION, :
: Tax Type:
Cent. Assessed
Respondent. :
___________________________________
STATEMENT OF CASE
The
above-captioned matter involves an appeal to the Utah State Tax Commission from
the assessment by the Property Tax Division on the subject property. Petitioner asserted that the subject
property should have a lower market value as of the lien date XXXXX.
Petitioner
and Respondent have agreed that an adjustment of the valuation is
necessary. The original XXXXX valuation
computed by the Property Tax Division for the Utah operations of XXXXX was $$$$$,
based on a system value of $$$$$ and a Utah allocation percentage of
3.26%. The Property Tax Division has
conducted an audit of the taxpayer and has produced a revised assessment. The revised assessment makes the following
changes to the original assessment: The cost approach value declined $$$$$ due
to a decrease in the net book value of the leased plant in service. The income approach value decreased $$$$$
primarily due to a change in the capitalization rate from XXXXX percent to
XXXXX percent. The base earnings to be
capitalized was $$$$$ lower due primarily to the exclusion of the amortization
of the gain on sale income. The stock
and debt approach declined $$$$$ due to calculating stock prices at the annual
average price. The correlated system
value declined to $$$$$. The Utah
allocation percentage increased to 3.50% due to an increase in the leased
property located in Utah. The Property
Tax Division and the taxpayer agree that the revised Utah allocated value
should be $$$$$ for the XXXXX tax year.
Each
affected county had standing to object to the assessment of the subject
property pursuant to Utah Code Ann.
§592-1007, but elected not to do so.
ORDER
Based
on the foregoing, the Utah State Tax Commission hereby finds the market value
of the subject property for the tax year XXXXX is $$$$$.
The
Property Tax Division is hereby ordered to adjust its records in accordance
with this order of approval. The
affected County Auditors are also authorized to adjust their records in
accordance with the revised notice of assessment.
DATED
this 20th day of January, 1993.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco S.
Blaine Willes
Commissioner Commissioner