- ARIZONA – Arizona Court of Appeals holds that recently amended A.R.S. § 42-14155, allowing for reduction of taxable value by amount of tax credits or cash grants commonly afforded wind and solar energy equipment, does not apply retroactively.
- CALIFORNIA – Court of Appeals holds that telephone company’s failure to request refund in petition for reassessment precludes claim for $9 million in overpaid taxes.
- MASSACHUSETTS – Supreme Judicial Court rejects telephone companies’ constitutional claim to taxation of personal property at same rate as commercial and industrial real property.
- OREGON – Cities’ interest in electrical transmission capacity, purchased from electrical cooperative and used to transmit electricity over region’s federally administered power grid, is subject to property tax by Department of Revenue as a property interest held by a taxpayer.
- CONNECTICUT – Discounted cash flow method may be used in valuation of trash-to-energy plant.
- OREGON – Supreme Court affirms Tax Court decision that non-core buildings constitute functional depreciation detracting from property’s real market value, and that when accounting for this depreciation under the cost approach, the “value of the loss”—the appropriate reduction in replacement value—must be determined with reference to the property’s highest and best use.
January 31, 2017 | Newsletter
September 1, 2016 | Newsletter
- VIRGINIA – Supreme Court holds City of Richmond could not impose tax on natural gas consumed solely for purpose of generating electricity.
- SOUTH CAROLINA – U.S. District Court rejects railroad’s claim that South Carolina Valuation Act, which limits increases in appraised values of certain industrial properties but not railroads and utility providers, violates the Railroad Revitalization and Regulatory Reform Act of 1976.
- NORTH DAKOTA – County auditor may not use omitted property statutes to revalue oil and liquid petroleum gas terminals following reduction in prior year due to failure to notify taxpayer of Board of Equalization meeting.
- COLORADO – Court of Appeals holds that counties may retroactively assess oil and gas leaseholds under the omitted property statutes where value has been underreported, even without evidence of omitted property or willfully false and misleading annual statements.
- ALASKA – Department of Revenue regulation directing appeals of oil and gas property tax valuation to be heard by State Assessment Review Board while appeals of oil and gas property taxability were to be heard by Department violates statute granting Review Board exclusive jurisdiction over all appeals from Department’s assessments of oil and gas property.
April 1, 2016 | Newsletter
- MARYLAND – Tax Court rejects coal-fired electrical generating plant’s claim that highest and best use of its property is a natural gas plant.
- NEW YORK – Appellate Division holds that Town may be third-party beneficiary of a provision limiting the generator’s right to appeal property tax assessments in a supply agreement between an energy generating company and a power authority.
- UNITED STATES DISTRICT COURT – District Court for the District of Rhode Island holds that challenge to state statute limiting interest awards to power company prevailing in tax appeal is not ripe for review.
- OHIO – Supreme Court holds that Board of Tax Appeals lacks the authority to consider whether the county auditor has issued property tax assessment frivolously and in bad faith, such as to warrant sanctions.
- INDIANA – Tax Court holds that assessed value of business tangible personal property reported on taxpayer’s return prevailed where County Tax Assessment Board of Appeals failed to issue timely determination.
July 5, 2015 | Newsletter
- TEXAS – Natural gas production and processing equipment is taxable by a county if located in the county on January 1 for more than a temporary period, even if county is not the equipment owner’s principal place of business.
- MARYLAND – Tax Court rejects taxpayer’s cost approach valuation based on assumption that efficient, environmentally compliant coal-fired electric generating plant would be replaced with natural gas facility.
- HAWAII – Intermediate Court of Appeals holds that wind turbines are not taxable real property under Maui County Code.
- VERMONT – Supreme Court holds that value of utility easements and rights of way not taxable to easement holder.
- GEORGIA – Supreme Court allows Southern LNG to seek declaratory judgment compelling State Revenue Commissioner to recognize it as a “public utility” and to accept its property tax returns rather than requiring filing with the County.
- NEW HAMPSHIRE – Department of Revenue Administration could use utility tax appraisal of renewable energy windpark in determining the equalized value for property tax purposes.
- MINNESOTA – Tax court not bound to use Minn. R. 8100, Commissioner of Revenue’s framework for valuation of utility property for assessment purposes, in determining fair market value of gas distribution pipeline system.
- NEBRASKA – Payment in lieu of tax exempted public power and irrigation district from liability for property taxes on leased parcels, regardless of whether the parcels were used for an authorized public purpose.
December 8, 2014 | Newsletter
- ALASKA – Municipalities awarded attorneys fees and costs as prevailing parties in Trans-Alaska Pipeline Tax Appeal.
- CALIFORNIA – Court of Appeal holds that the drilling and deepening of oil and gas wells constitutes new construction, and that assessor's use of the cost method was not unreasonable.
- VERMONT – Value of utility easements and rights of way held by electrical utility is not properly included in property tax assessment.
- TEXAS – Court of Appeals reverses order requiring refinery owner to provide sensitive financial information, because not necessary to produce accurate appraisal.
- OHIO – Auction sale of foreclosed property could be considered voluntary and arm's length such that auction price is evidence of value of property for tax purposes.
September 29, 2014 | Newsletter
- KENTUCKY – Franchise of a public service company is not subject to statutory property tax exemptions and its valuation not entitled to be spread over other types of assets when assessing property taxes.
- MARYLAND – Ground leases by which taxpayer leased income producing commercial real property from city could be considered in valuing the property for property tax purposes only if they contained restrictions diminishing the value of the property.
- GEORGIA – Gas company seeks to compel State Revenue Commissioner to recognize it as “public utility” and to accept its property tax return.
- NEBRASKA – Mailing of personal property tax return could constitute filing of return, even if not received by the county assessor.
- KANSAS – Out-of-state natural gas marketing companies and out-of-state municipalities are not “public utilities” under Kansas law and therefore entitled to the merchants’ and manufacturers’ inventory exemption for their natural gas held for resale.
July 1, 2014 | Newsletter
- CALIFORNIA – Intangible assets have a quantifiable fair market value which must be deducted from an income stream analysis prior to taxation.
- MASSACHUSETTS – Leasehold improvements made by tenant of tax-exempt property not subject to property tax.
- CONNECTICUT – Prior owner lacks standing to challenge property tax assessment of office building.
- MICHIGAN – Owner-occupied big box stores properly valued for property tax purposes as vacant and available, rather than occupied.
- COLORADO – Supreme Court affirms Appellate Court, holds that assessing cable service providers differently than public utilities does not violate state constitution.
May 1, 2014 | Newsletter
- CALIFORNIA – Petroleum refinery property, unlike most other industrial property where fixtures and land are separately assessed, may be taxed as a unit.
- CALIFORNIA – Underutilization adjustment based on economic obsolescence requires proof of causation by external factors, as opposed to taxpayer’s own actions.
- COLORADO – Country club memberships are not the equivalent of “rental income” and should not be used in an income-approach valuation of club property.
- NEW JERSEY – Tax Court rejects municipality’s argument that impact of environmental contamination and the cost of remediation on true market value is limited to contaminated portions of an industrial site.
- MONTANA – Telecommunications service company which provides cable, voice and internet services should be centrally assessed; cannot report voice and internet services locally.
June 1, 2013 | Newsletter
- WEST VIRGINIA – Steel company’s cutting of steel coils into smaller sizes does not render them a “product of different utility” and thus ineligible for the Freeport Exemption.
- COLORADO – Airport concessionaires’ possessory interests in City property is taxable despite extensive operational controls imposed on the concessions by the City and the shared seating and other customer areas.
- NORTH CAROLINA – Court of Appeals rejects use of standard depreciation schedules of leased computer equipment for failure to adequately account for functional and economic obsolescence.
- OHIO – Tax Commissioner cannot mandate taxpayer’s use of “first in, first out” method of valuing inventory for tax purposes absent administrative rule or showing that taxpayer’s accounting method was arbitrary.
- OKLAHOMA – Failure to comply with statute requiring notice to county assessor of filing of tax appeal and payment under protest deprives reviewing court of jurisdiction.
- OREGON – County representatives under no obligation to advise taxpayer of its rights to appeal tax assessment and failure to do so does not excuse untimely appeal.
- MASSACHUSETTS – Appellate Tax Board may consider evidence of the regulatory features of rate regulated utility property in deciding to use actual property taxes as an expense, rather than a tax factor, in its income capitalization approach as market reference to estimate economic obsolescence.
October 1, 2012 | Newsletter
- TEXAS – Misapplication of statutory allocation formula costs Southwest Airlines $25 million.
- CONNECTICUT – Charitable exemption claim may not be raised in defense of action to foreclose municipal tax lien.
- ARKANSAS – Supreme Court rejects claim that the ad valorem tax on oil and gas royalties is an illegal exaction prohibited by the Arkansas Constitution.
- TEXAS – Taxpayer who forgot to deduct depreciation in valuation rendered to appraisal district was not entitled to correction as “clerical error” under Tex. Tax Code Ann. § 1.04 (18).
- CALIFORNIA – Court of Appeals rules that State Board of Equalization regulation combining petroleum refineries’ fixtures with their land and improvements as a single appraisal unit (Rule 474) violates statute requiring separate appraisals (Cal. Rev. and Tax. Code Section 51 (d)).
- UTAH – “Non-exclusive possession” exemption to Utah privilege tax (U.C.A. § 59–4–101) applies unless possession is exclusive against all parties, including the property owner.
- NEBRASKA – Placing personal property tax return in office “outgoing mail” box not sufficient to avoid late penalty if return does not arrive on time.
- OREGON – Tax court finds equipment retailer’s efforts to establish real market value of his equipment using Craigslist and eBay unconvincing.
- GEORGIA – Change in valuation pending final determination of appeal is not correction of “clerical error” authorized by OCGA § 48-5-299 (a).