92-1308 - Centrally Assessed

 

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