Start Date
13-12-2018 3:00 PM
End Date
13-12-2018 4:00 PM
Description
Many states centrally value utility and multistate business property, often referred to as “operating property”, using unit value methodologies, which value the property of the company as a whole and then allocate a certain amount to the individual state. Many more states use this approach when valuing only certain industries, such as railroads and pipeline companies. This presentation will discuss some of the seminal legal cases that provide support for state unitary assessment and interstate allocation of operating property, and also provide information on some of the common operating property issues that have resulted in litigation. This will be followed by a discussion of unit valuation and interstate allocation methodologies generally employed in state assessment, and briefly discuss the apportionment of value to taxing jurisdictions based on reported line mileage.
Recommended Citation
Rudd, Jerott and Southard, Mark, "State unitary assessment" (2018). IAAO Annual Legal Seminar. 7.
https://researchexchange.iaao.org/legal/legal18/sessions/7
State unitary assessment
Many states centrally value utility and multistate business property, often referred to as “operating property”, using unit value methodologies, which value the property of the company as a whole and then allocate a certain amount to the individual state. Many more states use this approach when valuing only certain industries, such as railroads and pipeline companies. This presentation will discuss some of the seminal legal cases that provide support for state unitary assessment and interstate allocation of operating property, and also provide information on some of the common operating property issues that have resulted in litigation. This will be followed by a discussion of unit valuation and interstate allocation methodologies generally employed in state assessment, and briefly discuss the apportionment of value to taxing jurisdictions based on reported line mileage.