HomeMy WebLinkAbout20082188.tiff Colorado Department of Local Affairs
Susan E. Kirkpatrick
Executive Director
4 `g'' DIVISION OF PROPERTY TAXATION
•a ,r
JoAnn Groff
t ?h.. Property Tax Administrator
Bill Ritter,Jr.
Governor
TO: County Commissioners
FROM: JoAnn Groff
Property Tax Administrator
SUBJECT: 2008 Final County Notice of Valuation for State Assessed Properties
Plus August 2008 Protest Narrative for County Assessors
DATE: August 1, 2008
MEMORANDUM
Enclosed are the final 2008 valuations for state assessed companies. Companies with values that
are different from the values listed on the July 1 NOV have been marked with an asterisk, "*».
Companies that have been assigned a "Best Information Available" (BIA) assessment will have the
BIA notation next to their names.
The values listed on the enclosed notice must be included in the values certified to taxing entities
in August and on your 2008 Abstract of Assessment. The August 1 Final Notice of Valuation
includes the following categories:
Category Description
• $ Assessed: This category consists of the assessed value of the real and
personal property.
• $ Actual: This category is the actual value of the real and personal
property.
• 5.5 % Limit: This column contains information on the assessed value of the
newly constructed real property and associated personal
property. The value is reported on abstracts of assessment,
and it is reported on certifications of value as new construction
for the 5.5 percent property tax limit.
• Tabor Actual: This column shows the actual value of newly constructed real
property. This value is reported on certifications of value as
new construction for the TABOR Local Growth calculation.
If you disagree with the final valuation of a company that you timely protested in July 2008, you
may file a petition on or before August 31, 2008, with the Board of Assessment Appeals (BAA),
1313 Sherman Street, Room 315, Denver, CO 80203, (303) 866-5880. You can also access the
BAA through its website at http://dola.colorado.pov/baa/. Laws concerning the appeal process are
found in §§ 39-2-125(1)(b)(I) and 39-4-108(8), C.R.S.
For questions about new construction values reported on this notice, please contact Greg
Schroeder either by phone: (303) 866-2681 or e-mail: greq.schroeder(a�state.co.us. For other
questions, please contact the State Assessed Properties Section.
G:\DPT-GRP\SAP12008 NOV Cover LettersWugust 1 Commissioner NOV 2008.doc 2008-2188
1313 Sherman, Room 419, Denver, CO 80203, (303)866-2371 nrerias
TDD(303)866-5300 FAX(303)866-4000
E-Mail: joann.oroff(@state.co.us
()Eh-//-oe ('( F 4z oilccc)
Colorado State Assessed Property
Notice of Valuation - County Summary
August 1,2008
WELD
ID Company Name $Assessed $Actual 5.5%Limit Tabor Actual
TL 569 360Networks(USA),Inc $32,000 $110,300 $0 $0
TL 570 AboveNet Communications,Inc. $22,900 $79,000 $0 $0
TX 414 ACN Communications Services,Inc. $15,100 $52,100 $0 $0
TX 936 Affinity Telecom,Inc. $1,400 $4,800 $0 $0
TL 369 AT&T Communications,Inc. $3,489,600 $12,033,100 $369,200 $14,600
TM 439 AT&T Mobility fka Cingular Wireless $981,300 $3,383,800 $0 $0
PD 306 Atmos Energy Corporation $7,221,800 $24,902,800 $0 $0
ER 067 Basin Electric Power Coop $921,200 $3,176,600 $0 $0
TX 524 BCN Telecom,Inc. $700 $2,400 $0 $0
PF 312 Buckeye NGL Pipe Line fka BP* $272,300 $939,000 $0 $0
TX 571 Bullseye Telcom,Inc. $500 $1,700 $0 $0
RR 345 Burlington Northern&Santa Fe Railway Company $4,820,700 $16,623,100 $0 $0
TL 572 Cbeyond Communications, Inc. * $12,700 $43,800 $0 $0
EN 385 CCWE Holdings, LLC.dba Cedar Creek Wind $1,976,100 $6,814,100 $1,464,700 $685,600
PT 324 Cheyenne Plains Gas Pipeline Co.,LLC $26,876,900 $92,6.79,000 $0 $0
TX 091 Cincinnati Bell Any Distance,Inc. $1,100 $3,800 $0 $0
PT 328 Colorado Interstate Gas Company $31,476,500 $108,539,700 $104,200 $26,400
TL 370 Comcast IP Phone II,LLC. $355,700 $1,226,600 $0 $0
TM 662 Cricket Communications Inc $302,300 $1,042,400 $0 $0
TL 133 DIECA dba Covad Communications Co $900 $3,100 $0 $0
TL 159 Evercom Systems,Inc.* $15,800 $54,500 $0 $0
AL 020 Federal Express Corp.* $14,100 $48,600 $0 $0
TX 440 Futurum Communications Corporation $33,900 $116,900 $0 $0
TX 157 Go Solo Technologies,Inc. $300 $1,000 $0 $0
RR 355 Great Western Railway of Colorado $1,488,900 $5,134,100 $0 $0
ER 827 Heartland Consumer Power District $100,300 $345,900 $0 $0
High Energy $250,800 $864,800 $0 $0
ER 085 Hi h West flea Rural Elec
ER 075 Highline Electric Assn. * $7,500 $25,900 $0 $0
TX 257 Iloka dba Microtech-Tel $7,300 $25,200 $0 $0
TX 373 Impact Telecom LLC $200 $700 $0 $0
TX 865 Inter-Tel Net Solutions $20,600 $71,000 $0 $0
TX 022 lonex Communications North Inc(tka:Birch) $26,800 $92,400 $0 $0
TX 249 KDDI America,Inc. $600 $2,100 $0 $0
PT 675 Kerr-McGee Gathering LLC $53,956,900 $186,058,300 $0 $0
PT 920 KM Interstate Gas Transmission LLC $10,104,600 $34,843,400 $0 $0
TL 500 Level 3 Communications,LLC _ _ $367,100 _$1,265,900 $0 __ $0
TX 545 Liberty Bell Telecom,LLC $100 $300 $0 $0
TX 612 Lightyear Network Solutions,LLC $2,300 $7,900 $0 $0
ER 825 Lincoln Electric System $87,500 $301,700 $0 $0
TX 762 Matrix Telecom,Inc. $3,900 $13,400 $0 $0
TL 390 MCI Communications Services,Inc $364,000 $1,255,200 $0 $0
TL 368 McLeodUSA Telecomm Services,Inc. $390,300 $1,345,900 $0 $0
TM459 Metrocall,Inc. $41,900 $144.500 $0 $0
ER 081 Morgan County Rural Elec Assn* $929,100 $3,203.800 $0 $0
TM 820 NE Colorado Cellular, Inc. $13,400 $46,200 $12,200 $5,200
TR 481 Nunn Telephone Company $683,800 $2,357,900 $81,500 $10,100
TX 037 Orbitcom,Inc. $2,600 $9,000 $0 $0
TX 115 PAETEC Communications,Inc. $3,000 $10,300 $0 $0
EN 472 Ponnequin Acquisitions LLC (BIA) $1,000,000 $3,448,300 $0 $0
7/30/2008 WELD Page I of 2
ID Company Name $Assessed $Actual 5.5%Limit Tabor Actual
ER 084 Poudre Valley Rural Electric Assn. * $2,824,500 $9,739,700 $210,800 $9,100
TX 347 Primus Telecommunications,Inc. $400 $1,400 $0 $0
EL 064 Public Service Company of Colorado* $90,839,600 $313,240,000 $0 $0
TL 923 Qwest Communications Corporation $13,500 $46,600 $0 $0
TL 393 Qwest Corporation $26,983,100 $93,045,200 $0 $0
TX 602 Qwest Wireless LLC $9,400 $32,400 $0 $0
PT 056 Rockies Express Pipeline LLC* $35,800,100 $123,448,600 ;30,398,300 $417,800
EN 052 Rocky Mountain Energy Center,LLC $74,138,000 $255,648,300 $0 $0
PT 679 Rocky Mountain Natural Gas Company* $16,300 $56,200 $0 $0
PF 588 Rocky Mountain Pipeline Systems LLC $1,363,800 $4,702,800 $0 $0
TR 487 Roggen Telephone Co-op $118,600 $409,000 $27,600 $0
PF 323 Sinclair Pipeline Company $59,100 $203,800 $0 $0
PD 309 SourceGas Distribution LLC* $1,048,700 $3,616,200 $0 $0
PT 334 Southern Star Central Gas Pipeline,Inc. $1,312,700 $4,526,600 $0 $0
EN 165 Spindle Hill Energy.LLC. $22,262,400 $76,766,900 ;2.3,796,100 $1,449,200
TL 379 Sprint Communications Co LP $355,700 $1,226,600 $0 $0
TM611 Sprint Nextel Corp $2,011,900 $6,937,600 $0 $0
TR 490 Stoneham Co-op Telephone $152,800 $526,900 $0 $0
PF 634 Suncor Energy(USA)Pipeline Company $3,380,900 $11,658,300 $0 $0
TX 965 Telecom Management Inc. $1.300 $4,500 $0 $0
EN 867 Thermo Cogeneration Partnership,L.P. $21,198,000 $73,096,600 $0 $0
EN 318 Thermo Greeley,LLC $1,878,800 $6,478,600 $0 $0
EN 746 Thermo Power and Electric,LLC. $948,400 $3,270,300 $0 $0
TM 449 T-Mobile West Corp.* $1,256,300 $4,332,100 $0 $0
PT 340 Trailblazer Pipeline Company $4,282,600 $14,767,600 $0 $0
TL 060 Transaction Network Services.Inc. $3,000 $10,300 $0 $0
TX 613 Tri-M Communications,Inc $500 $1,700 $0 $0
ER 093 Tri-State Gen&Transm Assoc $4,763,200 $16,424,800 $0 $0
RR 361 Union Pacific Railroad Company $11,116,500 $38,332,800 $2,300 $7,9.00
ER 094 United Power,Inc. $12,104,000 $41,737,900 $0 $0
TM455 Verizon Wireless(VAW)LLC $5,196,200 $17,917,900 $442,300 $269,300
TX 293 Via Talk,LLC $300 $1,000 $0 $0
ER 833 Western Minnesota Municipal Power Agency $252,300 $870,000 $0 $0
PT 807 Westgas Interstate,Inc. $20,300 $70,000 $0 $0
PF 956 Westtex 66 Pipeline Co. $64,300 $221,700 $0 $0
TR 496 Wiggins Telephone Association $122,700 $423,100 $0 $0
TX 527 Windstream Comm.,Inc.(fka Alltel)* $800 $2,800 $0 $0
TX 618 Working Asset Funding Service,Inc, $86,300 $297,600 $0 $0
PT 343 Wyoming Interstate Company,Ltd. $10,079,500 $34,756,900 $0 _ $0 _
ER 824 Wyoming Municipal Power Agency $41,400 $142,800 $0 $0
TL 456 XO Communications,Inc $5,400 $18,600 $0 $0
TOTALS $484,812,900 $1,671,769,000 ;56,909,200 $2,895,200
7/30/2008 WELD Page 2 of 2
Colorado State Assessed Property - Private Canine
Notice of Valuation - County Summary
August 1,2008
WELD
ID Company Name $Assessed $Actual
PC 099 ADM Transportation Co. $10,300 $35,500
PC 930 AG Processing Inc. $1,600 $5,500
PC 180 Air Liquide America Corporation $400 $1,400
PC 105 Alabama Power Company $2,800 $9,700
PC 596 Alliant Energy $9,300 $32,100
PC 938 Allied Enterprises,Inc. $100 $300
PC 109 American Electric Power Service Corp. $17,000 $58,600
PC 418 American Railcar Leasing LLC $13,000 $44,800
PC 690 American Soda,LLC $7,800 $26,900
PC 692 Arizona Electric Power Cooperative,Inc. $31,300 $107,900
PC 922 Arrendadora Nacional De Carros $1,300 $4,500
PC 117 ASARCO LLC $100 $300
PC 995 Atel Leasing Corporation $100 $300
PC 681 Basell USA,Inc. $1,000 $3.400
PC 904 BASF Corporation $100 $300
PC 213 BHP Copper,Inc. $200 $700
PC 723 C.W.Brooks
$100 $300
PC 125 California Railcar Corp. $100 $300
PC 998 Calumet Lubricants, Inc. $100 $300
PC 885 Canadian Wheat Board(CPWX)* $100 $300
PC 553 Cargill,Inc. $9,000 $31.000
PC 962 CCC Transport Company
p p y $400 $1.400
PC 126 Celtran, Inc. $100 $300
PC 928 CEMEX $1,500 $5,200
PC 604 Centennial Gas Liquids.LLC $300 $1,000
PC 131 Chevron Phillips Chemical Co. $3,700 $12,800
PC 130 Chevron USA,Inc. $2,400 $8,300
PC 132 Chicago Freight Car Leasing $13,900 $47,900
PC 791 Citicorp Railmark,Inc. $25,200 $86,900
. . ...............__.. . .
PC 934 CK Industries Inc $400 $1,400
PC 188 Coffeyville Resources Nitrogen Fertilizers,LLC $100 $300
PC 980 Coleto Creek Power LP $600 $2,100
PC 223 Colorado Lava $200 $700
PC 336 Compass Capital Corporation $600 $2,100
PC 212 Conagra Foods(MHC,Inc.) $3,300 $11,400
PC 040 Conoco Phillips Company $6,700 $23,100
PC 907 Conrad Yelvington Distributors, Inc. $200 $700
PC 891 Consumers Energy -- ---(CPOX) $500 $1,700
PC 231 Consumers Energy(FSTX) - $100 $300
PC 881 Consumers Energy(NSTX) $200 $700
PC 701 Continental Tank Car $100 $300
PC 619 Coors Brewing Company(BIA) ---
-.. P Y $61,800 $213,100
PC 135 CPS Energy $300 $1,000
PC 702 Cryo Trans.Inc. $3,600 $12,400
PC 141 Crystal Car Line $1,000 $3,400
....____._.__... . .
PC 908 CWR Transportation $100 $300
PC 036 Dakota Gasification Company $200 $700
PC 893 Detroit Edison $1,200 $4,100
PC 273 Dow Chemical Co &Union Carbide
$3,000 $10,300
7/30/2008 WELD Page 1 of 4
ID Company Name $Assessed $Actual
PC 290 E I duPont de Nemours and Co. $100 $300
PC 269 Eastman Chemical Company $1,100 $3,800
•
PC 266 Entergy Arkansas,Inc. $2,000 $6,900
PC 174 Entergy Gulf States,Inc. $13,600 $46,900
PC 939 Enterprise Products Operating LP $100 $300
PC 124 EPIC $400 $1,400
PC 148 Equistar Chemicals,LP $1,500 $5,200
PC 889 Everest Railcar Services, Inc. $100 $300
PC 715 Excel Railcar Corporation _ _ $4,500 $15,500
PC 100 Exelon Generation Company LLC $6,700 $23,100
PC 151 Exxon Mobil Corporation $3,000 $10,300
PC 033 Farmers Commodities Transportation Co LLC* $2,100 $7,200
PC 519 Fayette Power Project $11,300 $39,000
PC 220 First Union Rail Corporation $91,600 $315,900
PC 915 FirstEnergy Generation Corporation* $25,900 $89,300
PC 718 Flex Leasing 1,LLC $900 $3,100
PC 521 FMC Corporation $9,000 $31,000
PC 156 Formosa Transrail Corp. $1,200 $4,100
PC 162 GATX Corporation $84,400 $291,000
PC 699 GATX Rail Canada Ika CGTX $500 $1,700
PC 417 General Electric Railcar Services _ _ $60,900 $210,000
PC 344 Georgetown Rail Equipment Co. $5,300 $18,300
PC 960 Georgia Power Company $3,100 $10,700 -._.
PC 168 GLNX Corporation $2,200 $7,600
PC 704 Greenbrier Management Services(FLIX) $4,300 $14,800
PC 709 Greenbrier Management Services(GBRX) $3,400 $11,700
PC 175 Halliburton Co $800 $2,800
PC 686 Helm Chesapeake Limited Partnership $100 $300
PC 550 Helm Financial Corporation $4,600 $15,900
PC 935 Helm-Pacific Leasing $300 _ $1,000
PC 946 Herzog Contracting Corp. $200 $700
PC 958 High Sierra Transportation $400 $1,400
PC 888 Holcim(US)Inc. $4.1,200 $142,100
PC 914 ICL Performance Products LP $200 $700
PC 955 Independent Salt Company $600 $2,100
PC 261 INEOS Olefins&Polymers USA $900 _$3,100
PC 957 Infinity Rail LLC $800 $2,800
PC 963 Interstate Commodities Inc. $300 $1,000
PC 235 1&1 Railcar Leasing,LLC $300 $1,000
PC 878 J.R.Simplot Co. _ - $4,800 $16,600 � - -- -
PC 199 Kennecott Utah Copper Corp $2,800 $9,700
PC 977 Koch Nitrogen Company $100 $300
PC 900 L.G. Everest, Inc. _ $27,600 $95,200
PC 987 L.B.Foster Company $400 $1,400
PC 911 Lower Colorado River Authority $4,800 $16,600
PC 232 M&C Railcar Leasing,LLC $1,500 $5,200
PC 986 Macquarie Rail fka Railcar Custom Leasing $1,100 $3,800
PC 207 Mallard Transportation Co. _ $100 $300
PC 847 MHF Logistical Solutions $500 $1,700
PC 537 Mid-American Energy Co. _ _ $200 $700
PC 990 Midwest Ethanol Transport $500 $1,700
PC 403 Midwest Generation,LLC $500 $1,700
PC 999 Midwest Railcar Corporation $700 $2,400
PC 918 Midwest Railcar Equipment Company $1,700 $5,900
7/30/2008 WELD Page 2 of 4
ID Company Name $Assessed $Actual
PC 968 Minnesota Soybean Processors $400 $1,400
PC 217 Mississippi Power Company $12,100 $41,700
Ika MRC)
214 Mitsui Rail Capital _-� _- - -- --- ---_-( $266,000 $917,200
PC 251 MRXX Corporation $100 $300
PC 994 Muscatine Power&Water $100 $300
PC 152 NashTex Leasing,Inc. $200 $700
PC 243 Nevada Cement
_- $1,300 $4,500
PC 230 Nevada Power $3,200 $11,000
PC 039 North American Salt Company $100 $300
PC 945 Northern States Power $2,400 $8,300
PC 173 Nova Chemicals, Inc. $1,000 $3,400
PC 428 NRG Power Marketing,Inc. $499,300 $1,721,700
PC 427 NRG Texas Power,Inc. $36,100 $124,500
PC 974 NTL Transportation Corp. $500 $1,700
PC 226 Occidental Chemical Corporation $1,200 $4,100
PC 144 OCI Chemical Corporation $200 $700
PC 285 Ohio Valley Electric Corp. $1,100 $3,800
PC 910 Oil-Dri Corporation of America $200 $700 _
PC 227 Oklahoma Gas&Electric Co. $100 $300
PC 229 Omaha Public Power District $100 $300
PC 993 Perdue AgriBusiness Incorporated $100 $300
PC 894 Plains LPG Services LP $300 $1,000
PC 240 Procor Limited $1.3,900 $47,900
PC 728 Proctor&Gamble Company $600 $2,100
PC 600 Progress Rail Services Corporation $300 $1,000
PC 241 Public Service Company of Colorado $242,600 _ $836,600
PC 242 Public Service Company of Oklahoma $4,700 $16,200
PC 901 Rail Connection,Inc. $100 $300
PC 948 Rail Logistics LC $100 $300
PC 416 Railcar Associates LP $7,200 $24,800
PC 415 Railcar Leasing LLC $5,100 $17,600
PC 926 Rampart Range Corp. $1,900 $6,600
PC 973 Reagent Chemical&Research $200 $700
PC 879 Redstreak.LLC $100
-----'-_. __.-_ $300
PC 250 Relco Tank Line,Inc. $200 $700
PC 887 Rio Grande Chemical $10,900 $37,600
PC 882 Rocky Mtn.Transportation Services $2,900 $10,000
PC 691 S.M.Brooks Freight $100 $300
PC 298 Savage-Tolk Energy Services $234,800 $809,700
PC 944 SC Rail Leasing dba Southern IL Railcar $1,200 $4,100
PC 200 Searles Valley Minerals $100 $300
PC 880 SemStream LP $100 $300
PC 338 Services Unlimited $100 $300
PC 258 Shell Oil Co. $100 _ $300
PC 253 Sherwin Alumina,LP $100 $300
PC 259 Shintech,Inc. $100 $300
PC 101 Solvay Chemicals,Inc. $4,100 $14,100
PC 339 Southern Rail Associates $100 $300
PC 940 Southern Rail Leasing,Inc. $100 $300
PC 333 Southwest Rail Industries,Inc $3,200 $11,000
PC 255 Southwestern Electric Power Company $1,900 $6,600
PC 042 Structural Metals dba CMC Steel Texas $300 $1,000
PC 989 Sulcom,Inc. $200 $700
PC 267 Tamak Transportation $100 $300
7/30/2008 WELD Page 3 of 4
ID Company Name $Assessed $Actual
PC 782 Tate&Lyle Ingredients Americas,Inc. $600 $2,100
PC 044 Texas Railcar Leasing $300 $1,000
PC 875 The Andersons,Inc. $1,900 $6,600
PC 876 The Andersons,Inc.-Rail Group $100 $300
PC 976 The Andrews Companies fka Pivotal Enterprises $500 $1,700
PC 143 The CIT Group/Capital Finance,Inc. $425,800 $1,468,300
PC 905 The David J.Joseph Co. $8,700 $30,000
PC 797 The Empire District Electric Co. $600 $2,100
PC 203 The PolyOne Corporation $100 $300
PC 967 The Tie Yard of Omaha Inc $500 $1,700
PC 975 Total Petrochemicals USA,Inc. $300 $1,000
PC 636 Transportation Equipment,LLC $2,600 $9,000
PC 978 Trinity Chemical Leasing LLC $1,400 $4,800
PC 278 Trinity Industries Leasing Company $277,700 $957,600
PC 346 Trinity Rail Management,Inc. $56,200 $193,800
PC 275 TTX Company $95,900 $330,700
PC 376 Tubular Transport Services,Inc. $400 $1,400
PC 909 Tucson Electric Power Company $48,700 $167,900
PC 292 TXU Generation Company LP $77,900 $268,600
PC 917 UNIMIN Corporation $1.800 $6,200
PC 284 Union Tank Car Company $90,800 $313,100
PC 925 United Asphalt,Inc. $100 $300
PC 951 US Ecology Idaho $900 $3,100 ----
PC 970 VIP Tank Car Services $100 $300
PC 102 Wedron Silica Company $4,600 $15,900
PC 201 Well Services(Schlumberger Tech Corp) $8,100 $27,900
PC 954 Westar Energy,Inc. $2,100 $7,200
PC 034 Western Evergreen Inv $1,600 $5,500
PC 294 Western Farmers Elec Co-Op $4,100 $14,100
PC 296 Western Fuels&Asphalt Supply,Inc.* $700 $2,400
PC 295 Western Fuels Association $137,000 $472,400
PC 903 Western Railraod Equipment Company $100 $300
PC 595 Winter Bird Corporation $100 $300
PC 883 Wisconsin Electric Power $100 $300
TOTALS $3,290,700 $11,345,100
7/30/2008 WELD Page 4 of 4
r
STATE ASSESSED PROPERTIES SECTION
PROTEST NARRATIVE FOR COUNTIES
AUGUST 2008
TABLE OF CONTENTS
POSSIBLE DISTRICT COURT OR BAA APPEALS 3
STATUS OF PRIOR YEARS BAA FILINGS 3
BEST INFORMATION AVAILABLE(BIA) ASSESSMENTS 3
OMITTED PROPERTY 4
APPORTIONMENT CHANGES WITHOUT A PROTEST 4
COUNTY PROTESTS 5
COMPANY PROTESTS 21
ADDRESS LIST CHANGES 27
OVERVIEW OF THE 2008 VALUATION SEASON
This document contains the Division of Property Taxation State Assessed Section's (SA)
explanations and responses to company and county protests of 2008 valuations. If
additional review is needed, county assessors may schedule time in August through
December to come to Division offices to review SA valuation files and/or consult with a SA
appraiser. Final assessed value changes from the July 1 — July 15 formal protest period
have been included in the industry-based table below:
INDUSTRY TYPE 2006 2007 2008 Diff 2007 v.2008
TOTAL AIRLINE COMPANIES $ 371,112,500 $ 389,063,300 $ 446,800,300 $ 57,682,200 14.8%
TOTAL MAJOR ELECTRIC COMPANIES $1,062,028,000 $1,044,747,700 $1,011,516,500 $(33,231,200) (3.2)%
TOTAL INDEP POWER PRODUCERS $ 325,348,000 $ 287,244,400 $ 322,244,800 $ 35,000,800 12.2%
TOTAL RURAL ELECTRIC COMPANIES $ 456,923,600 $ 499,649,600 $ 502,036,000 $ 2,386,400 .5%
TOTAL DISTRIBUTION PIPELINE COMPANIES $ 29,668,400 $ 39,186,500 $ 40,011,800 $ 825,300 2.1%
TOTAL FLUID PIPELINE COMPANIES $ 32,677,900 $ 84,861,400 $ 44,133,600 $ 40,727,800 (48.0)%
TOTAL TRANSMISSION PIPELINE COMPANIES$ 338,081,900 $ 433,185,200 $ 610,339,500 $177,154,300 40.9%
TOTAL RAILROAD COMPANIES $ 245,351,500 $ 262,005,100 $ 280,836,600 $ 18,831,500 7.2%
TOTAL PRIVATE CAR LINES $ 42,039,300 $ 45,755,972 $ 62,613,000 $ 16,857,028 36.8%
TOTAL FACILITY BASED TELEPHONE COMP $ 821,632,900 $ 931,184,600 $ 947,726,900 $ 16,542,300 1.8%
TOTAL MOBILE TELEPHONE COMPANIES $ 287,183,600 $ 315,128,000 $ 344,553,100 $ 29,425,100 9.3%
TOTAL RURAL TELEPHONE COMPANIES $ 58,114,300 $ 58,485,900 $ 57,651,700 $ (834,200) (1.4)%
TOTAL TELEPHONE RESELLER COMPANIES $ 9,850,500 $ 17,093,300 $ 18,628,100 $ 1,524,800 9.0%
TOTAL WATER COMPANIES $ 385,100 $ 977 300 $ 1,200,200 $ 222,900 22.8%
TOTALS $4,044,005,700 $4,408,567,872 $4,690,292,100 $281,724,228 6.4%
Industry Code Changes
Rockies Express Pipeline (PT056) formerly miscoded as a PF (Fluid Pipeline) has
now been properly coded as a PT (Gas Transmission Pipeline).
Classification Changes (Local Assessment to State Assessment and vice versa)
NONE
County Appeals Narrative—August 1, 2008 1
Company Mergers and Consolidated Reporting for 2008
OnFiber Communications (TL670)
This company was consolidated and is reported as part of Qwest Communications
Corp (TL923) valuation.
Sprint Spectrum LP (TM435)
This company was consolidated and is reported as part of Sprint-Nextel Wireless
(TM611) valuation.
Texas Telecommunications LP (TM658)
This company was consolidated and is reported as part of Sprint-Nextel Wireless
(TM611) valuation.
Alaska Native Broadband (TM673)
This company was consolidated and is reported as part of Cricket Communications
(TM662) valuation.
Broadwing Communications (TL031)
This company was consolidated and is reported as part of Level 3 Communications
(TL500) valuation.
Colorado 1 - CINC (TM927)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Colorado RSA 3 LP (TM809)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Colorado 4 Park LP (TM798)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Colorado 6 San Miguel - CINC (TM800)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Two Buttes Cellular of CO - CINC (TM799)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
America West Airlines (AL007)
This company was consolidated and is reported as part of US Airways (AL048)
valuation.
County Appeals Narrative—August 1, 2008 2
POSSIBLE DISTRICT COURT OR BOARD OF ASSESSMENT APPEALS (BAA)
Companies or representatives that protested and did not receive the changes they asked
for, or want to provide more data to support their position.
2008 CURRENT YEAR
Company Account Comments
Vonage Networks TX410 Litigate right to assess VOIP-based telephone
systems
PacifiCorp D 066 Possible appeal of treatment of CIAC in value
Twin Buttes Wind Power, LLC EN018 Value appeal and constitutionality of valuation
statute (County appeal)
United Airlines .. AL049 Valuation of flight aircraft
STATUS OF PRIOR YEARS BAA FILINGS
These companies continue have active appeals with the Board of Assessment Appeals
(BAA).
Prior Years
Company Year Status
Delta Airlines (AL016) 2005 _ BAA hearing withdrawn as of 7/18/08
Liberty Bell Telecom (TL545) 2006 Hearing scheduled for 10/1/08
BEST INFORMATION AVAILABLE (BIA) ASSESSEMENTS
LOOK FOR COMPANY NAMES FOLLOWED BY "(BIA)" ON YOUR COUNTY NOTICE
OF VALUATION.
Company Status
Coyote Hills Water Company (WA396) Failure to file
Vonage Networks (TX410) Failure to file
Good Faith Water Company (WA046) Failure to file
San Luis and Rio Grande Railroad (RR352) Failure to file
Ponnequin Acquisition LLC (EN472) Failure to file
Americatel (TX520) Failure to file
USP Communications (TX599) Failure to file
Clear World Communications (TX614) Failure to file
National Access Long Distance (TX615) Failure to file
Touch 1 Communications (TX639) Failure to file
Discount Cellular (TX758) Failure to file
County Appeals Narrative—August 1, 2008 3
Private Canine Company
Allcapital Rail Management (PC892) No response.
Cementos Apasco S.A. de C.V. (PC966) No response.
Coors Brewing Company (PC619) No response.
DTE Coal Services (PC706) No response.
Fast Track Leasing LLC (PC884) No response.
Greenfield Logistics LLC (PC982) Protested BIA.
Lone Star Industries (PC896) No response.
Transportation Technology Services Inc (PC959) No response.
Pursuant to § 39-4-103 (1.5)(c), C.R.S., failure to file waives all rights to purpose an
abatement or refund of value.
OMITTED PROPERTY
NONE
Starting in August 2008, the Division will undertake an omitted property discovery program
for Voice over Internet Protocol (VOIP) telecommunications companies operating in
Colorado. Since the Colorado Public Utility Commission does not regulate or license
these types of companies, we are using the Internet to find them.
CHANGES WITHOUT A PROTEST
LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK "*" ON YOUR COUNTY
NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN
APPORTIONMENT CHANGE.
Falcon Broadband (TL365)
Value adjusted based on a late filed ASOP and the July 1 BIA value was removed. El
Paso County advised to remove local assessment.
Colorado Natural Gas (PD667)
As a result of a county protest inquiry, the company has found an error in all county
apportionments and has supplied a revised apportionment page for all Colorado
counties. Values for all counties will be revised for the August 1 NOV.
Blue Spruce Energy Center (EN051)
Value was misapportioned by the taxpayer to Weld County. The August 1 County
NOV will have the value apportioned correctly to Adams County.
Canadian private car line companies Canadian Wheat Board (CPWX) (PC885) and
Canadian Wheat Board (CNWX) (PC886) had their July 1 values reversed and are
now corrected.
Cementos Apasco S.A. de C.V. (PC966)
The July 1 BIA to Denver has been removed.
County Appeals Narrative—August 1, 2008 4
Farmers Commodities Transportation Co LLC (PC033)
The company apportioned value has been added in the appropriate counties.
First Energy Generation (PC915)
Value adjusted based on a late filed ASOP and the July 1 BIA value was removed.
Western Fuel and Asphalt Supply (PC296)
The company apportioned value has been added in the appropriate counties.
T Mobile West (TM449)
Based on an inquiry from a county, the company discovered a Colorado allocation and
apportionment issue that affected Adams, Arapahoe, Boulder, El Paso, La Plata, and
Montezuma. We have made the correction to the allocation and apportionment
numbers in the value which will be reflected in the August 1 county NOVs.
Rockies Express Pipeline (PF056)
A county requested New Construction notification of the new pipeline due to a new
compressor station building built with it. New construction has been acknowledged by
the company and new construction amounts will be apportioned to Logan, Sedgwick,
and Weld counties.
COUNTY PROTESTS
LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK "*" ON YOUR COUNTY
NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN
APPORTIONMENT CHANGE.
ADAMS COUNTY
Blue Spruce Energy Center (EN051)
Value was misapportioned by the taxpayer to Weld County. The August 1 County
NOV will have the value apportioned correctly to Adams County.
ARAPAHOE COUNTY
Sprint Spectrum LP (TM435)
County wishes a review and explanation as to why no value for this company was
apportioned to Arapahoe County. This company was consolidated and is reported as
part of Sprint-Nextel Wireless (TM611) valuation.
Vonage Networks (TX410)
County wishes a review and explanation as to why no value for this company was
apportioned to Arapahoe County. The company did not timely file an Annual
Statement of Property (ASOP) for 2008 and a Best Information Available (BIA)
assessment was determined and apportioned to Denver County. As of July 29th, we
did not receive a completed ASOP, so the BIA value will stay in Denver County. It is
possible the company may litigate the right for Colorado to value VOIP-based
telephone systems.
County Appeals Narrative—August 1, 2008 5
Broadwing Communications (TL031)
County wishes a review and explanation as to why no value for this company was
apportioned to Arapahoe County. This company was consolidated and is reported as
part of Level 3 Communications (TL500) valuation.
BENT COUNTY
Twin Buttes Wind Power, LLC (EN018)
County has protested this taxpayer's value alleging two issues: the DPT incorrectly
calculated the tax multiplier factor that was used to value the facility and, (2) the
revenue amounts and rates reported by the company were erroneous and incorrect.
Valuation of this wind energy facility was completed in accordance with the provisions
of§ 39-4-102 (1.5), C.R.S., using a copy of the Purchase Power Agreement filed with
the DPT. The DPT stands behind its value and will make no adjustment.
SourceGas Distribution (PD309)
County asks why the 2008 SourceGas value is lower than the former company KN
Retail. Value was reduced approximately 6% compared to 2007 based on application
of the equalization factor and lower Colorado allocation percentage. However, we
anticipate the value to increase for 2009 due to a 2008 rate case filed by the new
owner. Since its acquisition by SourceGas from Kinder Morgan, the new owners of this
pipeline and gas distribution system have had difficulty in arriving at accurate county
apportionment percentages based on the historical cost of taxable assets in each
county. Based on discussions with the owner and review of the company's 2007 CWIP
account that indicates very little expansion of the distribution system in 2007, we
decided to use the 2007 county apportionment percentages reported by the former
owner to apportion the 2008 value. The company has been advised that they will be
required to submit an itemized listing of operating property, by county, before the 2009
valuation is determined.
CROWLEY COUNTY
SourceGas Distribution fka KM Retail (PD309)
County questioned drop in value from $186,400 (07) to $32,500 (08). Value was
reduced approximately 6% compared to 2007 based on application of the equalization
factor and lower Colorado allocation percentage. However, we anticipate the value to
increase for 2009 due to a 2008 rate case filed by the new owner. Since its acquisition
by SourceGas from Kinder Morgan, the new owners of this pipeline and gas
distribution system have had difficulty in arriving at accurate county apportionment
percentages based on the historical cost of taxable assets in each county. Based on
discussions with the owner and review of the company's 2007 CWIP account that
indicates very little expansion of the distribution system in 2007, we decided to use the
2007 county apportionment percentages reported by the former owner to apportion the
2008 value. The company has been advised that they will be required to submit an
itemized listing of operating property, by county, before the 2009 valuation is
determined.
Evercom Systems (TL159)
County questioned drop in value from $17,900 (07) to $500 (08). Taxpayer's property
is located at the Crowley Co Jail and has a depreciated net book value of $514. Based
on revised apportionment page supplied by the taxpayer, the county's apportioned
value will be $600 assessed.
County Appeals Narrative—August 1, 2008 6
V & S Towner Rail (RR651)
County questioned its county value dropping from $502,700 to $312,700. Last year's
value was a Best Information Valuation (BIA) assessment with an incorrect allocation.
This year's ASOP has the correct Colorado track miles allocation percentage.
Colorado's allocation is based off of 121.9 main land track miles of the system's 149.9
miles being located in Colorado. The effect of using the correct track mileage is a
reduction in value to Colorado counties.
DENVER COUNTY
Continental Airlines, Inc. (AL014)
Aircraft flight and ground hours in Colorado were down compared to 2007.
Public Service Company of Colorado (EL064)
Denver's allocation remained the same at 15.9 percent. The system value of the
company increased slightly from $3,941,558,000 to $4,158,652,000. Colorado's value
fell slightly due to the large CWIP deduction that Public Service received from new
property not yet put into service: $3,403,508,584 to $3,293,010,667. Thus, the
apportionment to Denver fell to $151,969,000 assessed value and $524,031,000
actual value.
Mesa Air Group, Inc. (AL663)
Mesa Air Group's Colorado activity was down more than 43% resulting in a value
significantly lower than 2007 value.
XO Communications (TL456)
The reduction in value was primarily due to a 27% decrease in Colorado property.
Property outside of the state increased 3%.
Horizon Air Industries (AL739)
Aircraft flight and ground hours in Colorado were down compared to 2007.
Trans States Airlines (AL772)
Aircraft flight and ground hours in Colorado were down compared to 2007.
Cbeyond Communications, Inc. (TL572)
Review of the 2008 ASOP filing indicated the company listed $1,750,000 in materials
and supplies and CWIP which are both exempt under Colorado statutes. These
deductions, which were not listed by the company in 2007, along with a reduced
allocation to Colorado resulted in a decline in value from last year. For 2008, we also
changed the valuation weighting to 50% cost — 50% income to better reflect future
expected rates of return and net operating income.
Inter-Tel Net Solutions (TX865)
County asked why value decreased. Prior year's filings by taxpayer incorporated
incorrect income data. Correct data resulted in lower value for 2008.
Astar Air Cargo, Inc. (AL674)
Company's income declined in 2007 and additional obsolescence was applied after
further review.
Lightyear Network Solutions, LLC (TX612)
County Appeals Narrative—August 1, 2008 7
Prior year's value was BIA. This year's value based upon data from the ASOP filing.
McLeodUSA Telecomm Services, Inc. (TL368)
The company removed about $1 million in property from the state. Even though
Denver County's apportionment increased from 37% to 39.7%, the removal of property
from the system value lowered the overall allocated Colorado value from $2,968,500 to
$2,227,000.
USA Mobility Wireless, Inc. fka Metrocall, Inc. (TM459)
Because the taxpayer filed incomplete financial information in the ASOP, the 2007
value was determined using financial information from the 10-K of Metrocall's parent
company, USA Mobility Inc. For 2008, USA Mobility Wireless Inc. filed a completed
ASOP with necessary information that we used to determine a value and apportion to
the affected counties. The resulting Colorado assessed value dropped from $865,800
to $653,000 based on the properly filed company information.
Coleto Creek Power LP (PC980)
Miles in the state went from 10,147,066 to 55,293.
Gold Line Telemanagement, Inc. (TX170)
Company had significantly lower net operating income in 2007 thus resulting in a lower
value for 2008.
NTS Communications, Inc. (TL442)
Based on a fiber review by the company, it was determined that several fiber conduits
purchased by the company have never been placed into service in Colorado. Pursuant
to § 39-3-118.5, C.R.S, the property is exempt until such time that it is put into use by
the present owner. Based on exclusion of the non-used fiber, the value for this
company declined.
NRG Texas, LP (PC287)
The company split its filing into NRG Texas Power Inc (PC427) and NRG Power
Marketing Inc (PC428).
DOUGLAS COUNTY
Cbeyond Communication (TL572)
Review of the 2008 ASOP filing indicated the company listed $1,750,000 in materials
and supplies and CWIP which are both exempt under Colorado statutes. These
deductions, which were not listed by the company in 2007, along with a reduced
allocation to Colorado resulted in a decline in value from last year. For 2008, we also
changed the valuation weighting to 50% cost— 50% income to better reflect future
expected rates of return and net operating income.
Comcast Phone of Colorado LLC (TL672)
Comcast completed the transition of all obsolete analog equipped customers to the
digital service Comcast IP Phone II (TL370).
County Appeals Narrative—August 1, 2008 8
Cricket Communications (TM662)
County asked why value decreased. Although there has been an increase in property
system-wide, there has not been a corresponding increase in revenue to maintain a
reasonable rate of return. For 2008, we decided to continue valuing the company at
100% cost approach and apply a 15% obsolescence adjustment (v. 10% in 2007) to
account for lower than anticipated net operating income. The increase in the
obsolescence percentage and application of the equalization factor resulted in 18%
drop in value for 2008.
Intermountain Rural Electric Assoc. (ER077)
County asked why value decreased. Comparison of net operating income amounts
indicates a 16% drop between 2007 and 2008. There was an approximate
$150,000,000 increase in Net Operating Property but only a $2,089,000 property
increase in Park County. The reduction in NOI drove a lower income value and the
large deduction for construction work in progress because of IREA's participation in the
Pueblo Comanche plant caused the lower county value.
Inter-Tel Net Solutions (TX865)
County asked why value decreased. Prior year's filings by taxpayer incorporated
incorrect income data. Corrected data resulted in a lower value for 2008.
Level 3 Communications (TL500)
County asked why value decreased. The taxpayer reviewed its property listing and
determined the street address of the equipment is 7400 East Orchard, Greenwood
Village, which is in Arapahoe County. Taxpayer stated the county location code had
been in error in past years and was corrected for 2008.
McLeodUSA Telecomm Services (TL368)
The company removed about $1 million in property from the state. In addition,
Douglas County's apportionment declined from 3.3% to 1.4%
Nextel West Corp DBA Sprint (TM611)
County asked why value was omitted. This company name has been changed and is
now Sprint-Nextel Wireless (TM611). The value apportioned to Douglas County is
$3,630,500 assessed.
Norlight Telecommunications (TX751)
County asked why value was omitted. The company is a telephone reseller in
Colorado with no tangible property in Colorado. The company ceased all operations in
Colorado prior to January 1, 2008.
OnFiber Communications (TL670)
This company was consolidated and is reported as part of Qwest Communications
Corp (TL923) valuation.
Sprint Spectrum LP (TM435)
County asked why value was omitted. This company was consolidated and is reported
as part of Sprint-Nextel Wireless (TM611) valuation.
County Appeals Narrative—August 1, 2008 9
Talk America Inc (TX684)
County asked why value was omitted. The company is a telephone reseller in
Colorado with no tangible property in Colorado. The company did not timely file an
Annual Statement of Property (ASOP) for 2008 and a Best Information Available (BIA)
assessment was determined and apportioned to Denver County. We have been in
contact with the company but they have not, as yet, provided us with necessary
financial and apportionment information for us to determine a value.
T-Mobile USA (TM449)
County asked why value was omitted. County value is now reported under T-Mobile
West (TM449). The 2008 county apportioned value for T-Mobile West is $1,690,400
assessed.
Transactions Network Services(TL060)
The company had not been depreciating the intangible asset account in the past,
which has more value than the tangible assets. Amortization of intangibles reduces
the net assets subject to valuation. The company continues to have negative operating
income.
Vonage Networks (TX410)
County asked why value was omitted. The company did not timely file an Annual
Statement of Property (ASOP) for 2008 and a Best Information Available (BIA)
assessment was determined and apportioned to Denver County. As of July 28th, we
did not receive a completed ASOP so the value will stay in Denver County. It is
possible the company may litigate the right for Colorado to value VOIP-based
telephone systems.
XO Communications (TL456)
The reduction was primarily due to a 27% decrease in Colorado property. Property
outside of the state increased 3%.
Coleto Creek Power (PC980)
Miles in the state went from 10,147,066 to 55,293.
Greenbrier Management Services (PC709)
Miles in the state went from 3,875,362 to 411,562.
NRG Texas Power (PC427)
The company split its filing into NRG Texas Power Inc (PC427) and NRG Power
Marketing Inc (PC428).
Trinity Rail Management (PC346)
Actual miles per day went from 145 to 188. When a carline travels under 150 actual
miles per day, the valuation formula imputes a standard 150 miles per day basis. Over
150 miles per day, the valuation formula defaults to 250 miles per day. Cars below
150 miles per day are usually in common private carline interchange. Cars above 150
mile per day are usually traveling in limited stop coal unit trains. This year, Trinity's
mileage and car usage is around 96% related to coal cars.
Westar Energy Inc (PC954)
Miles in the state went from 3,723,550 to 466,404.
County Appeals Narrative—August 1, 2008 10
EL PASO COUNTY
Express Jet (AL015)
County requests explanation of a reduction of $692,400 for the county apportionment.
Two factors affected this company's apportionment to El Paso County: Express Jet
had less activity in Colorado in 2007 and air/ground activity in Denver was significantly
higher proportionately than the activity in El Paso County thus reducing El Paso
county's apportionment of flight property.
Federal Express Corp (AL020)
County requests explanation of a reduction of$5,311,300 for the county
apportionment. Federal Express has amended the ground property originally filed on
their 2008 ASOP resulting in a significant increase in ground property values and an
increase to most county's allocations.
Mesa Air Group (AL663)
County requests explanation of the reduction of $1,890,300 for the county
apportionment. Mesa Air Group's Colorado activity was down more than 43% resulting
in a value significantly lower than 2007 value.
ATA Airlines (AL737)
This airline reported no El Paso County activity in 2007.
America West Airlines Inc. (AL007)
This airline merged with US Airways (AL048)
Air Transport International LLC (AL620)
This airline reported no El Paso County activity in 2007.
Evergreen INT Aviation Inc. (AL019)
This airline reported no El Paso County activity in 2007.
Horizon Air Industries Inc. (AL739)
This airline reported no El Paso County activity in 2007.
Capital Cargo INT Airlines Inc. (AL774)
This airline reported no El Paso County activity in 2007.
Transaction Network Services Inc. (TL060)
Company requests explanation of the reduction of $286,800 for the county
apportionment. The reduction in value is attributable to an amortization (write-off) of a
large amount of intangible asset value, both system-wide and Colorado, for the 2008
assessment year. These intangible assets were included in the 2007 valuation. The
write-off reduced the Colorado allocation percentage and thus the value to Colorado
and all affected counties.
Qwest Communications Corp. (TL923)
County requests explanation of the reduction of$430,300 for the county
apportionment. Company reported a significantly larger net operating loss
(approximately $500,000,000) for the 2007 calendar year with little prospects for the
company to generate a positive cash flow anytime soon. We assigned a 20%
economic obsolescence factor to recognize the larger than expected net income loss
and its effect on value of the company's assets. For 2007, the economic obsolescence
adjustment was 15%.
County Appeals Narrative—August 1, 2008 11
Broadwing Communications (TL031)
County wishes a review and explanation as to why no value for this company was
apportioned to the county. This company was consolidated and is reported as part of
Level 3 Communications (TL500) valuation.
McLeodUSA Network Services Inc (TL366)
County asks if this company is now locally assessed as there is a large location on
1780 Jet Stream Dr. For the 2007 assessment year forward, this company was
consolidated and is currently reported as part of McLeodUSA TeleComm Services,
Inc (TL368) valuation.
Level 3 Communications (TL500)
Is this now locally assessed, there are locations located at Jamboree, Tejon, and Bijou.
Value was misapportioned to Elbert County. The August 1 County NOV will have the
value apportioned correctly to El Paso County.
OnFiber Communications (TL670)
County ask if this company is now Locally Assessed. This company was consolidated
and is reported as part of Qwest Communications Corp (TL923).
Sprint Spectrum LP (TM435)
County asks if this company is now Locally Assessed. This company was consolidated
and is reported as part of Sprint-Nextel Wireless (TM611).
Texas Telecommunications LP (TM658)
County asks if this company is now Locally Assessed. This company was consolidated
and is reported as part of Sprint-Nextel Wireless (TM611).
Alaska Native Broadband (TM673)
This company was consolidated and is reported as part of Cricket Communications
(TM662).
Cooperative Communications Inc. (TX108)
County asks if this company is now locally assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. Taxpayer reported no
customers in El Paso County and thus your county was not apportioned any value for
2008.
Vonage Networks Inc. (TX410)
County asks if this company is now locally assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. The company did not timely
file an Annual Statement of Property (ASOP) for 2008 and a Best Information Available
(BIA) assessment was determined and apportioned to Denver County. As of July 28th,
we did not receive a completed ASOP so the value will stay in Denver County. It is
possible the company may litigate the right for Colorado to value VOIP-based
telephone systems.
American Telecommunications (TX541)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. Taxpayer reported no
customers in El Paso County and thus, your county was not apportioned any value for
2008.
County Appeals Narrative—August 1, 2008 12
Acceris Mgmt & Acquisition LLC (TX653)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. Taxpayer reported they are
out of business as of 1/1/2008 and we placed this company in the inactive file.
Talk America Inc. (TX684)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. The company did not timely
file an Annual Statement of Property (ASOP) for 2008 and a Best Information Available
(BIA) assessment was determined and apportioned to Denver County. We have been
in contact with the company but they have not, as yet, provided us with necessary
financial and apportionment information for us to determine a value.
Access One (TX725)
County asks if this company is now Locally Assessed. Originally, we had a BIA value
on this company due to failure to file but received a late June ASOP filing. You will
receive a value for this company on your August 1, 2008 county NOV.
Consumer Cellular (TX748)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. Taxpayer reported no
customers in El Paso County and thus, your county was not apportioned any value for
2008.
Norlight Telecommunication (TX751)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. The company ceased all
operations in Colorado prior to January 1, 2008.
Amerivision Communications Inc. (TX991)
County asks if this company is now Locally Assessed. The company is a telephone
reseller in Colorado with no tangible property in Colorado. Taxpayer reported no
customers in El Paso County and thus, your county was not apportioned any value for
2008.
LA PLATA COUNTY
Colorado 6 San Miguel - CINC (TM800)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Texas Telecommunications LP (TM658)
This company was consolidated and is reported as part of Sprint-Nextel Wireless
(TM611) valuation.
T Mobile West (TM449)
County wonders why they have no value for this taxpayer. Value has been on for
years. Based on this inquiry, the company discovered a Colorado allocation and
apportionment issue that affected Adams, Arapahoe, Boulder, El Paso, La Plata, and
Montezuma. We have made the correction to the allocation and apportionment
numbers in the company and county NOV. La Plata's apportioned value is now
$151,400.
County Appeals Narrative—August 1, 2008 13
Ptarmigan Resources and Energy, Inc. (EN635)
County notes that their value fell by more than half when the price of electricity
increased. For 2008, this company was valued as a renewable energy electric
generation company pursuant to § 39-4-102 (1)(e), C.R.S. The impact to value was
substantial compared to 2007 when this statute was not used. The taxpayer may
request an abatement for 2006 and 2007 should they wish to be revalued under this
statute.
Transwestern Pipeline (PT 310)
County notes that this taxpayer's value has fallen off $10,000,000 in one year while
other pipeline values have increased. The company filed last year and this year based
on preliminary financial data. For 2008, the filing was amended based on the final
financial report to the Federal Energy Regulatory Commission (FERC) and contained
revised net operating income numbers for 2006 and 2007. The effect of the revised
For 2008, the 2006 and 2007 net operating income amounts were amended.
Additional reduction in value is also attributable to a decline in the company's rate of
return from 6.29% to 5.74%.
Federal Express Corp (AL 020)
Value for this company this has fallen substantially for some reason. Federal Express
reported no air cargo activity for La Plata County this year. Ground property was all
that was reported for La Plata County. Federal Express has amended the ground
property originally filed on their 2008 ASOP resulting in a significant increase in ground
property values and an increase to most county's allocations.
LOGAN COUNTY
KM Interstate (PT920)
The value does not include Black Hills Exploration. We do not have Black Hills
Exploration state assessed so any property owned by Black Hills should be locally
assessed.
Public Service Company of Colorado (EL064)
County asks why value is going down when they have added transformer stations and
power lines to the new wind farms to the Pawnee power plant. The transformer
stations and power lines are owned by and assessed to Peetz-Logan Interconnect
Inc. (EN405). The county's apportioned 2008 assessed value for Peetz-Logan
Interconnect is $5,897,200.
SourceGas Distribution (PD309)
County asks why the 2008 SourceGas value is lower than the former company KN
Retail. Value was reduced approximately 6% compared to 2007 based on application
of the equalization factor and lower Colorado allocation percentage. However, we
anticipate the value to increase for 2009 due to a 2008 rate case filed by the new
owner. Since its acquisition by SourceGas from Kinder Morgan, the new owners of this
pipeline and gas distribution system have had difficulty in arriving at accurate county
apportionment percentages based on the historical cost of taxable assets in each
county. Based on discussions with the owner and review of the company's 2007 CWIP
account that indicates very little expansion of the distribution system in 2007, we
decided to use the 2007 county apportionment percentages reported by the former
owner to apportion the 2008 value. The company has been advised that they will be
required to submit an itemized listing of operating property, by county, before the 2009
valuation is determined.
County Appeals Narrative—August 1, 2008 14
Southern Star Central Gas Pipeline (PT334)
The reduction in value between 2007 ($604,900) and 2008 ($573,100) is from a minor
decline in rate of return on the assets, 8.43% to 8.24% compounded by a decline in
state allocation of 2.80% to 2.63%.
Spring Canyon Energy (EN205)
County asks about the reduction in value between 2007 and 2008. It is their
understanding that the assessment is fixed for 20 years. Under the 2006 Wind Energy
Facilities statute, value is based on gross revenue times a tax multiplier factor
determined by the DPT. Although the gross revenue increased from 2007 to 2008, the
tax factor number dropped due to lower non-renewable energy replacement costs that
are used to generate the tax factor.
Tri-State Generation and Transmission Association (ER093)
County questioned why value dropped between 2007 and 2008. Review of 2007 v.
2008 ASOP county apportionment information shows the same historical property cost
in the county of$626,137 for both 2007 and 2008. Reduction of $1,800 in assessed
value attributed to additional equipment depreciation and the 2008 equalization factor
of 0.97.
Western Minnesota Municipal Power (ER833)
County questioned why value dropped between 2007 and 2008. Review of 2007 v.
2008 ASOP county apportionment information shows virtually the same historical
property cost in the county of $24,735 for 2007 compared to $27,746 for 2008.
Reduction of $500 in assessed value attributed to additional equipment depreciation
and the 2008 equalization factor of .97.
Wyoming Municipal Power (ER824)
County questioned why value dropped between 2007 and 2008. Review of 2007 v.
2008 ASOP county apportionment information shows virtually the same historical
property cost in the county of $2,269 for 2007 compared to $2,069 for 2008.
Reduction of $100 in assessed value attributed to additional equipment depreciation
and the 2008 equalization factor of .97.
MOFFAT COUNTY
Salt River Project (ER086)
County questioned why value dropped between 2007 and 2008. County has sent a list
of questions regarding the value to Salt River Project (SRP). We have reviewed, in
detail, the response and supporting documentation supplied by SRP and have
adjusted the value due to a correction in the exempt materials and supplies deduction
and elimination of a portion of the Construction Work in Progress (CWIP) deduction
which we deemed to be unrelated to specific CWIP projects. It is our opinion that
personal property designated CWIP should be deducted only when (t is booked and
actually assigned a work order number.
MESA COUNTY
Colorado RSA 3 LP (TM809)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
County Appeals Narrative—August 1, 2008 15
Texas Telecommunications LP (TM658)
This company was consolidated and is reported as part of Sprint-Nextel Wireless
(TM611) valuation.
Coleto Creek Power LP (PC980)
Miles in the state went from 10,147,066 to 55,293.
First Energy Generation Corp (PC915)
Value adjusted based on a late filed ASOP and the July 1 BIA value was removed.
You will have apportioned value on the August 1 NOV.
AT&T Communications, Inc. (TL369)
The allocated value declined 1.6% after application of the equalization factor, and the
Mesa County apportionment of the allocated value declined from 1.0% to 0.9%.
Century Tel of Eagle, Inc. (TR473)
The company's value fell slightly due to the company's loss in 4.2 percent loss in
access lines from last year and the 25 percent drop in its income from its peak in 2004.
Mesa's allocation percentage remained the same at 2.7 percent.
Federal Express Corp (AL020)
Federal Express has amended the ground property net book values originally filed in
their 2008 ASOP resulting in a significant increase in ground property values and an
increase to most county's ground property allocations.
MCI Communications Services, Inc. (TL390)
Allocated value after equalization increased, but the Mesa County apportionment of the
allocated value declined from 1.4% to 1.1%. The effect of the drop in allocation
percentage resulted in a reduction of value for 2008.
TransColorado Gas Transmission, Co. (PT311)
The decline in value is driven by construction work in progress (CWIP) mostly outside
of the state. More CWIP outside of the state reduces the allocation to the state.
Colorado portion of CWIP is a deduction from that allocated value.
Public Service Company of Colorado (EL064)
Mesa's allocation remained the same at 3.6 percent. The system value of the
company increased slightly from $3,941,558,000 to $4,158,652,000. Colorado's value
fell slightly due to the large CWIP deduction that Public Service received from new
property not yet put into service and the application of the 2008 equalization factor.
Mesa Air Group, Inc. (AL663)
Mesa Air Group's Colorado activity was down more than 43% resulting in a value
significantly lower than 2007 value.
SkyWest Airlines, Inc. (AL561)
For 2008, additional economic obsolescence was applied after further review of
supplied data regarding expected future rates of return given large increase in fuel
prices.
County Appeals Narrative—August 1, 2008 16
MORGAN COUNTY
KM Interstate Gas Transmission (PT920)
County questioned why the large increase in value. County was worried about a
possible abatement later. Review of the filed ASOP apportionment page filed by the
company shows an increase to Morgan County from $59,091 historic cost to $483,658
historic cost. We have no reason to believe the apportioned value to the county is
incorrect.
OURAY COUNTY
Rocky Mountain Natural Gas Company (PT679)
County requested an explanation as to why value dropped from 2007 to 2008. Since
its acquisition by SourceGas from Kinder Morgan, the new owners of this pipeline have
had difficulty in arriving at accurate county apportionment percentages based on the
historical cost of taxable assets in each county. Based on discussions with the owner
and review of the company's 2007 CWIP account which indicates 87.9% of all CWIP in
2007 was for replacement, not expansion, of the pipeline, we decided to use the 2007
county apportionment percentages reported by the former owner to apportion the 2008
value. Since the allocated Colorado assessed value increased from $18,688,100 to
$20,524,400, this should eliminate any significant impact to county values for 2008.
The company has been advised that they will be required to submit an itemized listing
of operating property, by county, before the 2009 valuation is determined.
PARK COUNTY
Colorado Natural Gas (PD667)
County questioned why value went down by $2,946,900 assessed. As a result of this
inquiry, the company has found an error in all county apportionments and has supplied
a revised apportionment page for all counties. Values for all counties will be revised
for the August 1 NOV. The apportioned value for Park is now $3,147,200 assessed.
Intermountain Rural Electric Association (ER077)
County questioned why the value decreased by $349,300? There has been an
increase of services within parts of county and questioned why the value would
decrease. Comparison of net operating income amounts indicates a 16% drop
between 2007 and 2008. There was an approximate $150,000,000 increase in Net
Operating Property but only a $2,089,000 property increase in Park County. The
reduction in NOI driving a lower income value and the large deduction for construction
work in progress because of IREA's participation in the Pueblo Comanche plant
caused the lower county value.
Public Service Company of Colorado (EL064)
County noted that the 2008 Notice of Value shows no new construction for this account
due to a new substation built in the county in 2007. County forwarded a photo showing
an outbuilding and fencing and as a personal property station control structure. Xcel
amended its return and completed page 9 for Park County. The county NOV now has
the proper TABOR and 5.5% new construction numbers.
County Appeals Narrative—August 1, 2008 17
South Park Telephone (TR578)
County questioned only $5,000 increase in value but company has introduced a new,
high-speed internet system for the southern part of the county. The state assessed
valuation is only for the telecommunications service. If there is a high-speed internet
system, the company should be filing a local personal property return as well.
PHILLIPS COUNTY
Phillips County Telephone (TR483)
County asked why the value for the TABOR limit is smaller that the 5.5 percent limit.
The 5.5 % Limit is expressed as an assessed value while the Tabor Growth is
expressed as an actual value amounting for some of the difference. There was also
an error in the allocation of the real property and personal property. This was
corrected and the August 1, 2008, 5.5% Limit is $70,400 and the Tabor is $20,300.
Evercom Systems Inc. (TL159)
County asks why they didn't get an apportionment for this year. Based on the itemized
asset listing filed by taxpayer as part of its revised apportionment page, no property is
shown for Phillips County as of 1/1/2008.
Haxtun Telephone Company (TR478)
The county inquired why the value for this company is decreasing annually. The
Assessor is questioning this because they are the sole provider of not only telephone
service but Internet service for Haxtun and surrounding area? The state assessed
value only consists of the telephone communications portion of the company. The
company should also be filing a local rendition on its personal property. The
company's assessed value for Colorado last year for the state was $275,000. This
year it dropped slightly to $267,800. The company received a small deduction this
year for fiber it has in its operating company that is dark, or not in service. The
allocation to the county dropped slightly from 44 percent to 43.6 percent. The
company's net income dropped to less than 10 percent of its peak income in 2004.
The value assigned was the floor of 40 percent market to book with 100 percent weight
on the cost approach.
SourceGas Dist. fka KM Retail (PD309)
Value decreased by $16,800. Value was reduced approximately 6% compared to
2007 based on application of the equalization factor and lower Colorado allocation
percentage. However, we anticipate the value to increase for 2009 due to a 2008 rate
case filed by the new owner. Since its acquisition by SourceGas from Kinder Morgan,
the new owners of this pipeline and gas distribution system have had difficulty in
arriving at accurate county apportionment percentages based on the historical cost of
taxable assets in each county. Based on discussions with the owner and review of the
company's 2007 CWIP account that indicates very little expansion of the distribution
system in 2007, we decided to use the 2007 county apportionment percentages
reported by the former owner to apportion the 2008 value. The company has been
advised that they will be required to submit an itemized listing of operating property, by
county, before the 2009 valuation is determined.
County Appeals Narrative—August 1, 2008 18
Platte River Cellular CO (TM802) — County stated that this would be our Verizon
Wireless and I find it hard to believe that a cell phone company would decrease in
value. According to the ASOP filed with the DPT, the company reported lower
historical cost investment in Phillips County as of 1/1/2008 ($1,162,624) vs. 1/1/2007
($1,242,377). The reduced Phillips County investment cost for 2008 translated into a
reduced apportionment for the county and thus a reduced value.
PROWERS COUNTY
Colorado Green Holdings, LLC. (EN065)
County asked why the value dropped between 2007 and 2008. Drop in value was
caused due to using a lower non-renewable facility replacement cost per kilowatt for
2008 ($420/kw) versus ($533/kw) used in 2007. The 2008 study was based on simple-
cycle equipment costs reported by Gas Turbine World with an additional 40% added
for siting and installation. Also considered was the April 2007 Energy Information
Agency (EIA) study titled Electricity Market Module. The EIA study lists overnight costs
to construct various renewable and non-renewable energy facilities in the US.
AT&T Communications (TL369)
The Colorado allocated value declined 1.6% after application of the statutory
equalization factor, and Prowers County apportionment of the allocated value declined
from 6.1% to 5.3%.
Qwest Communications Corp (TL923)
QCC's institution of a GIS fiber mapping system for accurately accounting for and
locating its fiber optic property resulted in apportionment shifts between counties.
Trinity Rail Management (PC346)
Actual miles per day went from 145 to 188. Under 150 actual miles per day, the
valuation formula imputes 150 miles per day. Over 150 the valuation formula defaults
to 250 miles per day. Cars below 150 miles per day are usually in common
interchange. Cars above 150 mile per day are usually traveling in limited stop, coal
unit trains. This year, Trinity's mileage is approximately 96% related to coal cars.
Two Buttes Cellular of CO - CINC (TM799)
This company was consolidated and is reported as part of Verizon Wireless (VAW)
LLC (TM455) valuation.
Westar Energy Inc (PC954)
Miles in the state went from 3,723,550 to 466,404.
Western Farmers Electric COOP (PC294)
Miles in the state went from 7,344,759 to 591,876
RIO BLANCO COUNTY
Canyon Gas (PT282)
County asked why they didn't receive a value for 2008. Canyon Gas was designated
for local assessment for 2008 and the company advised to file a declaration schedule
in all counties wherein they had property. The county was given the name and phone
number of the tax agent handling the filing local returns for the company.
County Appeals Narrative—August 1, 2008 19
Chevron Pipeline Co. (PT314)
County asked why they didn't receive a value for 2008. Value was misapportioned by
the taxpayer to Rio Grande County. The August 1 County NOV will have the value
apportioned correctly to Rio Blanco County.
Yampa Valley Electric Assoc. (ER098)
County asked why they didn't receive a value for 2008. Value was misapportioned by
the taxpayer to Rio Grande County. The August 1 County NOV will have the value
apportioned correctly to Rio Blanco County.
White River Electric Assoc. (ER096)
County asked why the value for their share of the White River Electric Association
didn't go up much. The company built a new electric substation to service the oil shale
and new oil and gas development areas. We confirmed that the additional value
attributable to the new substation was included in the apportionment to the county. To
account for additional net operating income expected from the new substation, I
imputed a $1,500,000 NOI to value this company.
SEDGWICK COUNTY
Rockies Express Pipeline (PF056)
County requested New Construction notification of the new pipeline due to a new
compressor station building built with it. New construction has been acknowledged by
the company and new construction amounts will be apportioned to Logan, Sedgwick,
and Weld counties.
Highline Electric Association (ER075)
County requested New Construction notification on a new substation built by Highline
Electric in association with the new Rockies Express Gas Transmission pipeline.
Discussion with Highline Electric indicated the substation was not in service as of
1/1/08 but will be included as new property for 2009. No change in value or new
construction classification was warranted.
WELD COUNTY
Blue Spruce Energy Center (EN051)
Value was misapportioned by the taxpayer to Weld County. The August 1 County
NOV will have the value apportioned correctly to Adams County.
Cedar Creek Wind Energy (EN385)
Correction was made to the 5.5% New Construction amount reducing it from
$142,583,900 assessed to $1,464,700 assessed.
County Appeals Narrative—August 1, 2008 20
COMPANY PROTESTS
LOOK FOR COMPANY NAMES FOLLOWED BY AN ASTERISK "" ON YOUR COUNTY
NOTICE OF VALUATION. THESE COMPANIES HAD EITHER A VALUATION OR AN
APPORTIONMENT CHANGE.
AIRLINE COMPANIES (AL)
The June 1 values established for Airlines reflected our requirement that the airlines
provide sufficient documentation of economic obsolescence over and above the
obsolescence we initially granted. We felt this action was necessary given the wide
differences between airlines regarding flight property depreciation and values established
by the companies for leased aircraft. During the informal June and formal July protest
periods, several of the airlines provided us with general and specific company-based cost
and economic obsolescence information to support reductions in value for those
companies. In some cases, we reviewed used aircraft price information from the Airliner
Price Guide to establish a floor on obsolescence for flight property.
Ameriflight (AL828)
After further review, additional economic obsolescence for aircraft was applied.
Astar Air Cargo, FICA DHL (AL674)
Additional economic obsolescence was applied after further review.
Capital Cargo Int. Airlines (AL774)
Data provided regarding aircraft historical cost in 2007 ASOP was incorrect. Further
review indicated that 2008 reported data was proper.
Delta Airlines (AL016)
Additional economic obsolescence was justified after further review.
SkyWest Airlines (AL561)
Additional obsolescence was applied after further review of supplied data.
Southwest Airlines (AL300)
Error in data entry by division resulted in minor value adjustment.
United Airlines (AL049)
United amended their 2008 ASOP with more accurate ground property data and
deduction for avionics software which they are entitled to deduct under TEFRA. Their
depreciation scenario was rejected and Airliner Price Guide values were applied to final
aircraft totals instead.
County Appeals Narrative—August 1, 2008 21
ELECTRIC COMPANIES - MAJOR ELECTRICS (EL):
PacifiCorp (EL066)
Taxpayer filed a protest on the treatment of its Contributions in Aid of Construction
(CIAC) as part of its overall value. CIAC represents payments in cash or property
made to a public utility for new construction or modification to an existing service as
requested by the utility user. Taxpayer thinks that CIAC is exempt and should not be
taxed since CIAC is not allowed to generate a rate of return by FERC. As such, CIAC
has no value to a regulated utility. The company cited a recent decision by the Utah
Tax Commission to exclude CIAC. The DPT position is it should be treated like
surplus property and added to the value after the rate or return calculation is made as
a separate component of value. After consideration of the issue, no adjustment was
made.
ELECTRIC COMPANIES - ENERGY COMPANIES (EN):
STS Hydropower, Ltd. (EN061)
Taxpayer protested requesting additional obsolescence due to variances in stream flow
that affect the company's ability to generate power and consistent revenue levels year-
to-year. Using a 3 year flat average NOI, an adjustment was made to the value of this
facility. Use of a flat average (v. weighted) historical income stream recognizes that
income may fluctuate year to year based on water availability.
ELECTRIC COMPANIES - RURAL ELECTRICS (ER):
Gunnison County Rural Electric Company (ER074)
Mountain Parks Electric, Inc. (ER082)
San Isabel Electric Assoc, Inc. (ER087)
San Miguel Power Association (ER088)
White River Electric Association (ER096)
In completing the June 1, 2008 values for the above companies, we instituted a 40%
market-to-book ratio floor on each company's value. After discussion at the July 18,
2008, meeting at Tri-State offices with representatives of the Colorado Rural Electric
Association (CREA) Tax Committee and discussion with section staff and the Property
Tax Administrator, we decided to remove the 40% floor. Values now reflect, as was
done in prior years, consideration of the historical 3 year weighted average Net
Operating Income (NOI). For irrigation REAs, the historical 5 year flat average NOI
was used.
Further research and discussion with the CREA Tax Committee during the 2008 off-
season will be done. For 2009, treatment of Contributions-In-Aid-to Construction
(CIAC) amounts in the valuation of the REA will be reviewed and revised, as
necessary, so that the value of CIAC-funded property is either separately valued or
included at an appropriate amount in the REA's assessment.
Highline Electric Assoc (ER075)
Review of the value methodology was requested by taxpayer's agent, Tri-State.
Because this rural electric company derives better than 50% of its revenue from
providing electricity for water irrigation purposes, a 5 year flat average NOI was used to
determine both the Net Operating Income (NOI) and Rate of Return (ROR) for
calculating income shortfall in the cost approach.
County Appeals Narrative—August 1, 2008 22
KC Electric Assoc (ER078)
Review of the value methodology was requested by taxpayer's agent, Tri-State.
Because this rural electric company derives better than 50% of its revenue from
providing electricity for water irrigation purposes, a 5 year flat average NOI was used to
determine both the Net Operating Income (NOI) and Rate of Return (ROR) for
calculating income shortfall in the cost approach.
Poudre Valley Rural Electric Association (ER084)
Review of the value methodology was requested by taxpayer's agent, Tri-State. To
account for additional net operating income expected from an increase in net operating
property in 2006 and 2007, a ROR of 3.00% and net operating income of$3,500,000
was imputed to arrive at the final value.
Wheatland Electric Coop (ER095)
To account for additional revenue expected from an increase in net operating property
in 2007, a ROR of 4.50% and net operating income of $3,500,000 was imputed to
arrive at the final value.
White River Electric Association (ER096)
Review of the value methodology was requested by taxpayer's agent, Tri-State. To
account for additional net operating income expected from new property related to oil
shale activities in Rio Blanco County, I imputed a $1,500,000 NOI to value this
company.
Y-W Electric Association, Inc. (ER097)
This rural electric company derives better than 50% of its revenue from providing
electricity for water irrigation purposes. As a result, valuation was done using a 5 year
flat average NOI was used to determine both the Net Operating Income (NOI) and
Rate of Return (ROR) for calculating income shortfall in the cost approach.
San Luis Valley Rural Cooperative (ER523)
This rural electric company derives better than 50% of its revenue from providing
electricity for water irrigation purposes. As a result, valuation was done using a 5 year
flat average NOI was used to determine both the Net Operating Income (NOI) and
Rate of Return (ROR) for calculating income shortfall in the cost approach.
Sangre de Cristo Electric Association, Inc. (ER089)
This rural electric company derives better than 50% of its revenue from providing
electricity for water irrigation purposes. As a result, valuation was done using a 5 year
flat average NOI was used to determine both the Net Operating Income (NOI) and
Rate of Return (ROR) for calculating income shortfall in the cost approach.
Morgan County Rural Electric Association (ER081)
Review of the value methodology was requested by taxpayer's agent, Tri-State.
Because this rural electric company derives better than 50% of its revenue from
providing electricity for water irrigation purposes, a 5 year flat average NOI was used to
determine both the Net Operating Income (NOI) and Rate of Return (ROR) for
calculating income shortfall in the cost approach.
County Appeals Narrative—August 1, 2008 23
Southeast Colorado Power Association (ER090)
Review of the value methodology was requested by taxpayer's agent, Tri State.
Because this rural electric company derives better than 50% of its revenue from
providing electricity for water irrigation purposes, a 5 year flat average NOI was used to
determine both the Net Operating Income (NOI) and Rate of Return (ROR) for
calculating income shortfall in the cost approach.
MOBILE TELEPHONE COMPANIES (TM):
Durango Cellular (TM815)
Under the July protest, taxpayer's agent provided a breakdown of reported intangible
assets value into customer lists (taxable) and spectrum licenses (non-taxable). The
value of spectrum licenses was excluded from the value and thus reduced the value
from $6,172,000 assessed to $5,944,400 assessed.
WWC Holding Co. (TM916)
At the July protest hearing, taxpayer's agent withdrew its protest of this company's
value.
PIPELINES — DISTRIBUTION (PD):
SourceGas Distribution LLC (PD309)
Value was reduced approximately 6% compared to 2007 based on application of the
equalization factor and lower Colorado allocation percentage. However, we anticipate
the value to increase for 2009 due to a 2008 rate case filed by the new owner. Since
its acquisition by SourceGas from Kinder Morgan, the new owners of this pipeline and
gas distribution system have had difficulty in arriving at accurate county apportionment
percentages based on the historical cost of taxable assets in each county. Based on
discussions with the owner and review of the company's 2007 CWIP account that
indicates very little expansion of the distribution system in 2007, we decided to use the
2007 county apportionment percentages reported by the former owner to apportion the
2008 value. The company has been advised that they will be required to submit an
itemized listing of operating property, by county, before the 2009 valuation is
determined.
PIPELINES — FLUID (PF):
Buckeye NGL Pipe Line fka BP (PF312)
The value was reduced following the company's restatement of the financial
information from the final FERC report. Last year, the company used the Master
Limited Partnership (MLP) financials which overstated the economic life that is typical
for NGL pipelines. We believe the adjusted value represents a realistic market value
that could be achieved under an arms-length sale.
NuStar Logistics (PF322)
After discussion with the taxpayer, we decided not to make a change from the July 1
NOV value.
County Appeals Narrative—August 1, 2008 24
PIPELINES - TRANSMISSION (PT):
Rocky Mountain Natural Gas Company (PT679)
Since its acquisition by SourceGas from Kinder Morgan, the new owners of this
pipeline have had difficulty in arriving at accurate county apportionment percentages
based on the historical cost of taxable assets in each county. Based on discussions
with the owner and review of the company's 2007 CWIP account which indicates
87.9% of all CWIP in 2007 was for replacement, not expansion, of the pipeline, we
decided to use the 2007 county apportionment percentages reported by the former
owner to apportion the 2008 value. Since the Colorado assessed value increased from
$18,688,100 to $20,524,400, this should eliminate any significant impact to county
values for 2008. The company has been advised that they will be required to submit
an itemized listing of operating property, by county, before the 2009 valuation is
determined.
RAILROAD COMPANIES (RR):
Durango and Silverton Railroad (RR353)
Company requested consideration of the income approach to value due to the ups and
downs of the income stream of the company. The valuation reduction was granted to
$2,954,300. This is still an increase in value from last year. Last year's value was
$2,504,700. The increase in value from last year is due the income being back up
from its low in 2006.
TELECOMMUNICATION - FACILITIES BASED COMPANIES (TL):
Comcast IP Phone II, LLC (TL370)
We allowed a reduction in value for about 55% of the capitalized customer installation
costs for line drops. When a customer no longer subscribes to Comcast's telephone
service, any value of the line drop effectively transfers to the user at no cost.
Currently, the company is expensing and not capitalizing customer installation costs for
new subscribers. We felt that inclusion of capitalized customer installation costs, in
light of its current expensing practice, inflates the value of the assets of the company
over what a prudent purchaser would pay for the company.
Qwest Corporation (TL393)
We allowed a reduction in value due to an allocation adjustment. The allocation had
been based on regulatory-based cost while the valuation had been based on the
Generally Accepted Accounting Principles (GAAP) accounting asset cost. Both the
valuation and allocation methodologies are now GAAP-based.
County Appeals Narrative—August 1, 2008 25
TELECOMMUNICATIONS - RURAL TELEPHONES (TR):
Phillips County Telephone (TR483)
Phillips County Telephone petitioned its value for consideration of obsolescence. A
five year weighted average was applied to the income approach with 50 percent
weighting on both the income and cost approaches to value. Requested the company
submit access line information for last 5 years. The company did not supply us with
additional information we requested as to where it is in the Federal and State subsidy
program. Although, the income was half of what it was in the prior year, no additional
consideration other than normal income-based obsolescence was given. The value
still increased, from last year's value of$513,500 to $543,700.
TELECOMMUNICATIONS -TELEPHONE RESELLERS (TX):
Advanced Telemanagement Group. Inc. (TX375)
The company provided documentation indicating they are no longer doing business in
Colorado.
Windstream Communications , Inc. (TX527)
This reseller is a subsidiary of a parent company. Its allocation to Colorado was
reviewed and adjusted due a great disparity between number of Colorado customers
and gross revenue generated by those customers. Placing more weight on gross
revenue generated in Colorado as a more realistic measure of Colorado activity
resulted in adjustment to the Colorado allocation and a reduction of value.
CTC Communications Services (TX552)
After review of this company's CO activities and discussion with company
representatives, we have removed the company from our list of state assessed
telephone resellers. The company has no retail or wholesale "end-user" customers
and the small amount of revenue ($611) is for a back-haul relationship with Global
Crossing for Global Crossing's customers.
Master Call Communications, Inc. (TX218)
Master Call provided additional income information warranting a decrease in value
from the July 1 NOV value.
Norlight Telecommunications (TX751)
Norlight provided documentation indicating they are no long doing business in
Colorado.
OPEX Communications, Inc. (TX627)
OPEX filed a late ASOP resulting in removal of the July BIA value and apportionment
of value to affected counties.
Zayo Managed Services, LLC, FKA Voicepipe Communications, Inc. (TX302)
Company filed corrected financial information in its ASOP resulting in a lower value.
An adjustment was also made to apportion value to Boulder and Denver Counties to
account for the taxpayer's business office in Louisville.
County Appeals Narrative—August 1, 2008 26
TELECOMMUNICATIONS -WIRELESS (TX):
AT&T Mobility (TM439)
Taxpayer protested alleging overvaluation and improper calculation of the company
rate of return. Based on additional information regarding intangibles, license costs,
and customer lists, the net book value of these assets were added to the net operating
property for the purposes of calculation the Rate of Return (ROR). The 2007 year-end
ROR of 7.1% was selected for determination of economic obsolescence in the cost
approach thus reducing the overall system and Colorado value.
WATER COMPANIES (WA):
No protests filed for any water companies.
PRIVATE CARLINE COMPANIES (PC):
Two file entities had name changes without stating the "formerly known as" (fka)
reference. They are PC986 Macquarie Rail fka Railcar Custom Leasing and PC986 The
Andrews Companies fka Pivotal Enterprises.
There were some noted other differences in company names between the NOV list and
the mailing list. The following companies have had a name change on either the NOV list
or the mailing list to be consistent. Check your NOV list for any of these companies and
make changes.
EE August 1,2008
fi i rod 1 FNt3M hwipANy NAtviE
PC 200 Searles Valley Minerals
PC 201 Well Services(Schlumberger Tech Corp)
PC 203 The Polyone Company
PC 235 J&J Railcar Leasing LLC
PC 240 Procor Limited
PC 253 Sherwin Alumina LP
PC 261 INEOS Olefins&Polymers USA
PC 692 Arizona Electric Power Cooperative
PC 782 Tate&Lyle Ingredients Americas
PC 797 The Empire District Electric Co.
PC 880 SemStream LP
PC 882 Rocky Mtn Transportation Services
PC 885 Canadian Wheat Board(CPWX)
PC 886 Canadian Wheat Board(CNWX)
PC 944 SC Rail Leasing dba Southern IL Railcar
ADDRESS LIST CHANGES
Included with the August 1 county NOV is our current address list for the state assessed
companies in your county. Please make sure the names and addresses currently on your
system match the new August 1, 2008, listing. If desired for billing purposes, the treasurer
may change the address to a tax representative's address but should leave the company
name as listed in the NOV
/G:dpt-grp/sap/2008 Protests/County Protest Narrative
County Appeals Narrative—August 1, 2008 27
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