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HomeMy WebLinkAbout20072216.tiff RESOLUTION RE: THE BOARD OF EQUALIZATION, 2007, WELD COUNTY, COLORADO - DENY PETITIONER'S APPEAL AND AFFIRM ASSESSOR'S VALUE PETITION OF: DIAMOND SHAMROCK AD VALOREM TAX DEPT P O BOX 690110 SAN ANTONIO, TX 78269-0110 DESCRIPTION OF PROPERTY: ACCOUNT#: P0009071 PARCEL#: 095913300008-GR 175698 PT 13-5-66 SITUS: 2720 35 AV GREELEY 00000 WHEREAS, the Board of County Commissioners of Weld County,Colorado,convened as the Board of Equalization for the purpose of adjusting, equalizing, raising or lowering the assessment and valuation of real and personal property within Weld County,fixed and made by the County Assessor for the year 2007, and WHEREAS, said petition has been heard before the County Assessor and due Notice of Determination thereon has been given to the taxpayer(s), and WHEREAS, the taxpayer(s) presented a petition of appeal of the County Assessor's valuation for the year 2007,claiming that the property described in such petition was assessed too high, as more specifically stated in said petition, and WHEREAS, said petitioner not being present or represented, and WHEREAS,the Board has made its findings on the evidence,testimony and remonstrances and is now fully informed. NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County,acting as the Weld County Board of Equalization,that the evidence presented at the hearing clearly supported the value placed upon the Petitioner's property,after review by the Weld County Assessor. Such evidence indicated the value was reasonable,equitable,and derived according to the methodologies,percentages,figures and formulas dictated to the Weld County Assessor by law. The assessment and valuation of the Weld County Assessor shall be, and hereby is, affirmed as follows: ACTUAL VALUE AS DETERMINED BY ASSESSOR Land $ 0 Improvements OR Personal Property 53,820 TOTAL $ 53,820 2007-2216 eG' / 5 CA Per, 40 AS0067 RE: BOE - DIAMOND SHAMROCK PAGE 2 BE IT FURTHER RESOLVED that a denial of a petition, in whole or in part, by the Board of Equalization may be appealed by selecting one of the following three options;however,said appeal must be filed within 30 days of the denial: 1. Board of Assessment Appeals: You have the right to appeal the County Board of Equalization's(CBOE's)decision to the Board of Assessment Appeals(BAA). Such hearing is the final hearing at which testimony, exhibits, or any other evidence may be introduced. If the decision of the BAA is further appealed to the Court of Appeals,only the record created at the BAA hearing shall be the basis for the Court's decision. No new evidence can be introduced at the Court of Appeals. (Section 39-8-108(10), C.R.S.) Appeals to the BAA must be made on forms furnished by the BAA, and such appeals should be mailed or delivered within thirty(30)days of denial by the CBOE to: Board of Assessment Appeals 1313 Sherman Street, Room 315 Denver, CO 80203 Phone: 303-866-5880 Fees: A taxpayer representing himself is not charged for the first two appeals to the Board of Assessment Appeals; however,a taxpayer being represented by an agent or an attorney must submit a fee of$101.25 per appeal. OR 2. District Court: You have the right to appeal the CBOE's decision to the District Court of the county wherein your property is located. New testimony,exhibits or any other evidence may be introduced at the District Court hearing. For filing requirements, please contact your attorney or the Clerk of the District Court. Further appeal of the District Court's decision is made to the Court of Appeals fora review of the record. (Section 39-8-108(1), C.R.S.) OR 3. Binding Arbitration: You have the right to submit your case to arbitration. If you choose this option the arbitrator's decision is final and your right to appeal your current valuation ends. (Section 39-8-108.5, C.R.S.) Selecting the Arbitrator: In order to pursue arbitration, you must notify the CBOE of your intent. You and the CBOE select an arbitrator from the official list of qualified people. If you cannot agree on an arbitrator,the District Court of the county in which the property is located will make the selection. 2007-2216 AS0067 RE: BOE - DIAMOND SHAMROCK PAGE 3 Arbitration Hearing Procedure: Arbitration hearings are held within sixty days from the date the arbitrator is selected. Both you and the CBOE are entitled to participate. The hearings are informal. The arbitrator has the authority to issue subpoenas for witnesses, books, records, documents and other evidence. He also has the power to administer oaths, and all questions of law and fact shall be determined by him. The arbitration hearing may be confidential and closed to the public,upon mutual agreement. The arbitrator's written decision must be delivered to both parties personally or by registered mail within ten (10) days of the hearing. Such decision is final and not subject to review. Fees and Expenses: The arbitrator's fees and expenses are agreed upon by you and the CBOE. In the case of residential real property, such fees and expenses cannot exceed$150.00 per case. The arbitrator's fees and expenses, not including counsel fees, are to be paid as provided in the decision. The above and foregoing Resolution was,on motion duly made and seconded, adopted by the following vote on the 2nd day of August, A.D., 2007. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: n, 1.14), x as f EXCUSED David E. Long, Chair Weld County Clerk to than 4 &j itV i William Jerke, Pr -Tem BY: Deputy Clerk the Boa? William F. Garcia APPROVED AS TO FORM: EXCUSED Clstant , (� Robert D. Masden �b nW Att aikt, unty Attorney c., Douglas ademacher Date of signature: PAA,D 7 2007-2216 AS0067 WELD COUNTY CHRISTOPHER WOODRUFF COUNTY ASSESSOR BRENDA DONES, DEPUTY ASSESSOR VALUATION REPORT OF PERSONAL PROPERTY FOR County Board of Equalization DIAMOND SHAMROCK PETITIONER Vs. WELD COUNTY ASSESSOR'S OFFICE RESPONDENT Schedule Number: P0009071 Log Number: 4239 Date: August 2, 2007 Time: 4:40pm Board: BOARD PREPARED BY APPRAISERS NAME Raelene Anderson 7/25/07 Signature Date ASSESSOR'S OFFICE STAFF APPRAISER CBOE_PP_010998 Page 1 COST APPROACH Location of the subject property is: Street Address 2720 35 AV City GREELEY Pursuant to Colorado Revised Statutes the cost approach of Personal Property listed on the above mentioned property is attached, along with a copy of the declaration and/or correspondence from the petitioner. NARRATIVE The value on this account was derived from their 2007 Personal Property Declaration. The actual value of$53,820 was determined by listing all of the assets reported, the year purchased and their cost, then applying the appropriate tables and factors as mandated by the State Department of Property Taxation. When they turned in their 2007 declaration they reported no additions and no deletions for 2007. COST APPROACH VALUE $53,820 CBOE_PP_010998 Page 2 MARKET APPROACH Pursuant to Colorado Revised Statute the Assessor has considered the Market Approach to value on Personal Property. Due to the insufficient information for the market of personal property, the Weld County Assessor has not utilized the Market Approach. INCOME APPROACH Pursuant to Colorado Revised Statute the Assessor has considered the Income Approach to value on Personal Property. Due to the insufficient information for the income on Personal Property, the Weld County Assessor has not utilized the Income Approach. CBOE_PP_010998 Page 3 CONCLUSION The subject property has been classified as Personal Property for property tax purposes. Personal Property values shall be determined by appropriate consideration of the Cost Approach, Market Approach, and Income Approach to value. (39-1-103)(5)(a) CRS} The Assessor has considered the three approaches to value for the subject property. It is the petitioner's responsibility to provide sufficient evidence to substantiate that the Assessor's value is incorrect. After consideration of the three approaches, it is the Weld County Assessor's request that the value of $53,820 be affirmed for the tax year 2007. ASSESSOR'S VALUE $53,820 CBOE_PP010998 Page 4 CONFIDENTIAL ASSESSMENT DATE MAR.TO: :PERSONAL PROPERTY JANUARY 1,2007 MID COUNTY ASSESSOR DECLARATION SCHEDULE UN N.I7 AVE GAMEY.CO Mr3t ([aflmuw it DUE DATE APRIL 15,2007 Plow(Pa)353•SOI Fa(U0)3044433 2607 • &ra— _ _ nswAs Return This Copy (Din AIWpOII'IUMON.Y PLEASE READ INIMUMIONS ON RECEIVED RCOMPLETED EWiS S�[��ggMO®ING -SEM AND REIMS TM COPY LATE RUNG FEE YES() NO() MN NUMBER TA CODE BA CODE PARCEL NUMBER P0009071 0600 20045 015913300008 263200001 A NAME Ara MADaec MOWS RECEIVED SHOW CHANCES INNAME AND ADDRFs5 DLAIRMII SHAMROCK AD VALOREM TAT DIET P o PDX 690110 JAN 2 2 2007 PRE IllEgfitill SAN ARTOMIo, Tx 70261-0110 BUSINESS NAME AND PHYSICAL LOCATION d4 Ar11..a71.:T:::Du AP.1N`_•IT SHOW CLANYQTxOI&S UTAC.1ATION: PERSONAL PROPERTY Af OF JANUARY 1.2007 - ..-,.._T_..__._._-- OR 175690 PT 13-S-66 SITWA: 2720 35 aAV uGRRSE,SY 00000 Up . _. -._SNN,y F.oC 7yt _ WELD COUNTY ASSESSOR t a PO5f1iGS861A1710(Pt.' ask the�pop.o bww ONLY').im Barn Oocooias: GREELEY.or cotonAtice- -- -_.. - -- ❑NOT CURRENT RIISEYEW OWNER.Myr at not the on Wum own,check We ad wont Re mrme tad address of • R.sew eat: One Sold: O NEW RIISWEi7ANTRATIOTC Yew an pees fromples WSWSslea of SI pentad pawn Use des first pan ofSena DW tub Walls)if NSW i.sardoce wit f3}Y1193,CIS.,you we not teseired to Me RI declaring,3lh tool uteri veW(3Ms1.Ie vane)of your wooed poPng pr awry a 12,500 or W..Ifyeo are c Raw doe Spar on masseuse whaler M bed mewl gds of your personal propeay per essay exceeds 32,500,pleat outset the aunty essmn. to r.rr aWq rbsl yywwr Ndsm Ter w sank whither mat yes Ilk.deebate nlNsle. T[%L41'aVG lV9IIL98NIGANL7AWON.Wane aaqq ADWTIO S Soc DELETIONS a you brig it Iona D. 0 NEW OWNER OF PREVIOUSLY IXmmTTTNG RU70Yi9YORGANIZATION. You meet give•cowwis tai ed Esau ea pnsmad pmpnty sgaied i s bairn NJMIIJYTisdale,WERE O T O0 BUSia 1st I sinceINESS? Byes deck follow OPenad ❑AS OF JANUARY to WERE YOU OL ya following: Ropey Sold OPaaawl Property Stored O Doi So1N51wed: If SSW, Nersad CaskssRip.A a Owns dbP0b,:$ Iapny: PHONES RPRO Prior of, AMSY,aid P4siPmalQtly:f NOTE:If sold been des me New O DATF4 stab sEsls6efNew Owner. 0 PROPER M ON DATE; IS. fttll2[b L......n I P�VAL PROPERTY: ••POR TOR MOST ACCURATE ASSESSMENT,If IS RECOMMENDED TRAY YOU ATTACH A COMPLETE ITEMIZED ASSET L671NGWV1'TH EACH MUSPIESS PERSONAL PROPERTY DECLARATION FILING" New:Include ALL Exposed AMP WOs Lit of Ousts Tema I Yet IL9e D.erx%VN Amen SO is Use,and Sexed Assns That Are Subject to IRS Denton, Dar ALL macaw.nano ACRDIwga NPR TO)An W aY L FOAM Mu1R t*FDN II MENA HEM YEAR COMPLETE DESCRIPTION INCLUDING YOUR ORIGINAL FACTOR/ SPECIFY ITEM: SUnit. IDD ACQUIRED MODEL OR CAPACITY INSTALLED C(mT LIFE NEW M WI INTO SERVIM 000001 1183 PURII & 10CIPImPT 20,402.00 3/10 000002 1189 ICI WICK 3,590.00 4/10 000003 1990 SR=LVIMO 1,965.00 4/1 000004 1992 DAL/WAR/II 1,033.00 4/10 000005 1992 ROT DOG MACHINE 472.00 4/10 - _ 000006 1914 VCRATDO 1,143.00 4/9 E r� t 000007 1195 MIS) DISPIR/IR 55,530.00 1/10 a O 00000$ 1116 CRIHDITYSTn 17,524.00 1/10 0 000009 1996 SIOR 4,070.00 1/10 7 I. 000010 1909 TARES 13,132.00 1/20 - ^ 000011 1997 gnaws 1,629.00 1/10 `i C 000012 1990 SIONNOI 11,023.00 1/10 ` M p 000013 1990 Im WIN(CIARDIIIWIN( 5,124.00 4/10 000014 1999 RADIANT RACE OFF ITS 15,776.00 13/3 000015 2000 COMPUTE* EQUIP 6,404.00 13/3 (j MP 000016 2002 C000UTQ IQUIPImfr 4,553.00 13/3 000017 2002 MIACIRI 'IaIRO IICUIPM 12,437.00 4/10 IF NO ADDITIONS on DELETIONS CHECK HERE(✓ THIS RETURN IS SUIJECT TO AUDIT I. -trrarr,uN+els++smm,Aglwr+rr.rr.r.l r•r.r.rrs�rr mar ,i^`s.gnui maw amoral SSW.era oval in�.rrse. br.rr.+w..uwar.areirrr..rrrtrrr,.r + rrrgw.vrr.rOwrr.ruy+,r.trr+..Prtir.�.da�..r TA aon{aR OR AGENT �i.R.H UA w..t/l� DATE liar. 23, 200htfNE(210) 345-2297 DmON NACP►ROONNOWNO John Arand3 NAfENPOWYa Diamond Shamrock #641 PRIOR FEDS IMAL ADDRESS 0 Oat MME IF NEW AGENT.IF NEW AODn,EMMT A LIMN(P AUIDRIZATDa TNEN DUNG TUR FORM 5 CONFIDENTIAL ASSESSMENT DATE MAfl PERSONAL PROPERTY JANUARY 1,2007 WSW COUNTY ASSESSOR DECLARATION SCHEDULE WOO N.17 AVE 0S@1EY,CO 10.31 (Ca6dmed Dr.) DUE DATE APRIL IS,2007 Ns(915)MOOD Fa(ba)3014433 2807 Ea ,w_B,{a_I OMB= TALK Copy A79E9$OR'S UtE O4.Y PEASE READ WVERSE B�TR7IUtCTIO N ON RECEIVED COMPLETED sSIGN MID IMAM ISMS COPYLAZE HUNG FEE YES() NO() PIN NURSER TA CODE BA CODE PARCEL NUMBER POO09071 0600 26043 095913300006 263200002 • A.NAME Are MARI.c AMASS SHOW CHANGES M NAME AM)ADDRESS DIMS=D BEAItOQ AD VALOREM TAX DEPT P 0 BOX 690110 PREVIOUS OWNER'S NAME&ADDRESS SAN MITONIO, TX 78269-0110 RUMNESS NAME AND PHYSICAL LOCATION dim SHOW CHANGES OF PHYSICAL LOCATION: PERSONAL PROPERTY AS OF JANUARY I,3007 OR 175699 M 13-5-66 RITOB. 2720 35 • '-'AV ORBELXY 00000 - - • ___. . .. . _- 9.BUSOtlffi4 Swn Sh SR�rmborn 'DtTLbuiaml Oteam POW Or Write Plo.iM: IC.3 3NT�shale the basal ens W NOT CURRENT ES$OWNER t(yw neat enfant basis owaq.clskhme.no'elide the name dadAeud the eveeaa: Do Sold: D NEW BUM MA oaIWIntuat me Sgave. MRS personal poen,.Use S.Seat pandSono D M Mach thor(s)ifineded. la acueldasu MS 39J-IIf.S,CRS.,you re a te9ahedh this declaration if the ad MW valny per as valued gnat property carry 52,700 a leo If you area 1®a filer or are aeaa a b wheeler the bar Karl value amen personal popmry per corny meccas Kya,please cW.q the comity=MCC ass may Meet ramekins krone u.not yon ma a dedaad.. Y.. Rf67B'N:NBI9ZI6IOlGANIZATIOP1.vases ay AODD10NS ab'a DELETIONl Nyaa hiss is Saban D. O NEW OWNER OF PREVIOUSLY EXISTING WSINESIOBGANIZATION. You must gin a compkta Salad listing of personal property epeiM is a YS+rm.waWe. b de additions mare piano la I.Me.thr Farthestu A9 OR'JANUARY 1,WERE YOU OUT OF RUMNESS? If yes shade Wowing:EIPasoW Propesty Sold Merton.Property Sbnd pg$aItomal If 3*.Name M Ceaart bmmera ofNewOwner elSe Paint Properly: PHOfJE� 11 Da UV hies di VAR • ' TIM EgaPmsr Only:S NOf6:IfbY to more 9r ens New Owner,Pka.e atha Sag of Now Qmn TO t PpAAM: LEVYING PROPERTY: FOR THE MOST ACCURATE ASSPSS CLAR IT IIIO RR LING. THAT YOU ATTACH A COMPLETEWt Pat Gras ASSET ea,PSI4'WITR EACH ABUSINESSUse,and PERSONAL PROPAnts 17Y m Sabja DECLARATION PILING." Na.:Nre Yrt m AIL Espsr MOWS Adams WM a IJR: IKKIARr Or I Yea,PaW Demximr Ames Still I.Doe,and Stand Asses That Are$ahjsttb RS Depreciation. am ALLwnsu.eaoaftsv AUlpa�aempa fn aANIIARYI.ATTALIIOW= E1a REM YEAR COMPLETE DESCRIPTION INCLUDING YOUR ORIGINAL FACTOR) SPECIFY ITEM: N6)1RNA Lb ACQUIRED MODEL.OR CAPACITY INSTALLED COST LIFE NEW OR D INID. USED SERVES 000016 7004 EQUIPMENT REPRISE 3,575.00 1/10 000019 2004 PO5 EQUIPMENT 23,064.00 13/4 IV NO ADDITIONS OR DELETIONS CHECK HERE(y4 THIS RETURN IS SUAJECt TO AUDIT L .Irr.Mrp,.yfwre.r.aa.a.Oa r Say to.r.r.Eawrw.err.nos r,immrnyarsrrwn.r...r..re ._re+HW 4.ar .w�9ay. �"� .A. naY. .JrY m—ar�.w+ss�a.N.aw��n .�..r.,Marsra.a.ur,�r��A.rr�rre„E.rrra�rrr,rra W�,..srr.a..rrrrwrrr,a-war m0U11amlJP OSMIUM JACIARLerie�d Dn16 3/23/2007 mama(210L45-2297 muawAsawmmnslacic John Aland NAllaowam Diamond Shamrock /641 MN OR PEN &ASAI.nxn O OEM MISS NEW A1NNT.P NEW WENT,SUSRT A LEDER Of AUTHORIZATION MORI}RING TIM P ADd 8 6 )0 g N r co co 00 O N N 0) NCO N 0 M rn N CO r N r V V CD rn CO V rj 0 r r N co V CO 0 V CO O N O) aj V )- D rn) O O 6 (+) M O N O) 0)) h ig t0 co T N N �O M Nr N V CO N- N rn CQ 0N)) ' b ✓ r N N N y O CON 0) COrn N coO CI) CO. N N (D0 CON V .CVO CON N U) 0) O N O 7; ,rO m t0 O V CO O O CO Ocd W M m n N g 0- 0. 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N N N N N- r r N- 0 r r r r r N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 COrn rn a rn a 0) 0) 0) rn a a a rn COrn CO IN rn o 0 o 0 0 O 0 0 0 O 0 0 0 0 0 0 0 0 0 d3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 a a a a a a a a a a a a a a a a a a O 0Y OY OY OY OY OY OY OY OY OY OY OY OY OY OY OY OY OY OY U) Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U Z U ZOZO Z O ZO Z0 Z O J 00 000000000000000000000000 00 0000 00 00 00Q Ma 2IMIMIMI2Ce2IMee ECe2Ce2Ce2M2I MI mremz mre 2c ceF QM Q2Q2Q2Q2Q2Q2Q2Q2Q2Q2Q2Q2 Q2 < 24C2 Q2 Q2 Q2 � • 3 < p Q p Q o Q E Q p Q p Q p Q o Q p Q p Q p Q p Q c Q o Q E Q 'O Q 3.:( 'O Q 2 =S r 2 2 2 2==2 2 r S 2 = 2 = U) co co co co co co co co co co CO CO CO CO co co co co U) Colorado Department of Local Affairs Brian Vogt Executive Director r +`� j DIVISION OF PROPERTY TAXATION • JoAnn Groff Property Tax Administrator Bill Owens Governor TO: All County Assessors FROM: JoAnn Groff Property Tax Administrator SUBJECT: 2007 Personal Property Factors and Tables DATE: January 3, 2007 MEMORANDUM The attached tables and factors are to be used for the valuation of personal property for the 2007 assessment year. On December 14, 2006, the Statutory Advisory Committee (SAC) to the Property Tax Administrator recommended the attached Chapter 4 for approval and use for 2007. The State Board of Equalization (SBOE) has thirty days to review SAC recommendations. If the SBOE's review results in changes, you will be so advised in a separate memorandum. If you have any questions, please contact the Division at (303) 866-2371. JAG:KLBMb G:1DPi-GRWISCOMIPPFACTORS12007PP FACTOR$2007 PP BULLETIN COVER.DOC 1313 Sherman,Room 419,Denver,CO 80203,(303)866-2371 TDD(303)866-5300 FAX(303)866-4000 E-Mail: joann.groffestate.co.us 10998 8 'age B 4.1 CHAPTER 4 PERSONAL PROPERTY TABLES The personal property tables chapter contains the replacement cost factors, economic life estimates, and percent good tables that are provided to assist county assessors in valuing personal property by the cost approach. The level of value ad'ustmentfactors are provided pursuant to § 39-1-104(12.3), C.R.S., and must be used to factor assessment date actual values of personal property to the level of value (as of the appraisal date) in effect for real property. The tables and factors published here are subject to verification in the marketplace at the retail "end user" trade level. All cost approach value estimates are based upon the factors and tables found in this section. Cost approach value estimates must be reconciled to the market and income approaches to value based upon the appraiser's opinion as to the reliability of the information used to derive the value estimates from each approach. Reconciliation of the applicable approaches to value is required for the valuation of all personal property in Colorado. Actual Value Determined When. (13Xa)...the cost approach shall establish the maximum value of property if all costs incurred in the acquisition and installation of such property are fully and completely disclosed by the property owner to the assessing officer. (c) ...However,nothing in this subsection(13)shall preclude the assessing officers from considering the market approach or income approach to the appraisal of personal property when such considerations would result in a lower value of the property and when such valuation is based on independent information obtained by the assessing officers. §39-1-103(13),C.R.S. For Colorado personal property assessment purposes, the actual value is the value in use, as installed. Colorado statutes require that personal property be valued inclusive of all costs incurred in acquisition and installation of the property. The costs of acquisition,installation, sales/use tax, and freisht to the point of use must be considered in the personal property valuation. The inclusion of these costs requires that personal property be valued in use. Therefore,the actual value of personal property is based on its value in use. Counties that develop in-house trending or depreciation tables must submit them annually for approval to the Statutory Advisory Committee to the Property Tax Administrator prior to use. As the property under appraisal ages, the cost approach becomes less indicative of the property value. After fifteen years of age, the recommended valuation procedure is to measure the value of depreciated equipment directly in the marketplace, if possible. 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 998 it9 4.2 COST FACTOR TABLES The replacement cost factor tables are provided to assist the assessor in the determination of replacement cost new estimates by multiplying original or historical cost of personal property by the cost price indexes published and made available through the courtesy of the Marshall Swift Publication Company. When the original cost is multiplied by the factor for the year of acquisition,the product will approximate the current cost to replace,or the Replacement Cost New(RCN),of the personal property being appraised with property having similar utility. The assessor must select the appropriate industry category number that corresponds to the type of equipment being appraised. Thirteen industry category numbers are supplied. In many instances,the individual industry category covers more than one type of commercial or industrial property. Specific types of commercial and industrial property are found in each industry category. If the property to be factored can be specifically identified, the appropriate specific industry category (such as 3 for office equipment) should be applied. If the property cannot specifically be identified, the industry category for the business type may be used. If property is generally useful in many types of business activities, the predominant use shall determine the industry category. If particular property types are not included in the table, a comparable property type industry category number may be selected. The "average of all"(industry category number 1) should be selected if the specific property type is not included in any of the industry categories. After selecting the appropriate industry category number, the assessor uses the specific cost factor that corresponds to the year of acquisition of the equipment. The original cost of the equipment is then multiplied by the cost factor to arrive at the estimated replacement cost new(RCN)as of the assessment date. Example: ersonal Industry Acquisition Cost Property Number Year Cost Factor RCN Desk 3 2001 $1,500 1.17 $1,755 In other words, it would cost $1,755 on the current assessment date to replace an office desk purchased in 2001 for$1,500. 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 110998 age 10 4.3 INDUSTRY CATEGORY NUMBERS Types of Personal Property Included in Industry Categories Industry Category Table Industry Category Num ber Property Type 1 Average of All Candy and Confectionery, Creamery and 2 Dairy,Flour, Cereal and Feed,Garage,Meat Packing,Paint,Refrigeration and Rubber 3 Office Equipment, (excluding copiers), and Office Furniture 4 Retail and Wholesale Stores,Warehousing 5 Rental Furnishings, Apartments, Hotels and Motels Banks, Savings and Loans,Restaurants 6 and Lounges, and Theaters 7 Contractors' Equipment 8 Laundry&Cleaning Equipment 9 Bakery, Bottling, Canneries, and Fruit Packing Brewing and Distilling,Cement, 10 Clay Products,Glass,Metal,Logging, Metal Working, Mining and Milling Chemical,Electrical Equipment, 11 Manufacturing,Paper,Motion Pictures and Television,Printing, and Woodworking 12 All Petroleum,and Textile Computer and PC Equipment, 13* Computer-integrated Equipment, Telephone and Telecommunication Equipment, and Copiers Source: Marshall& Swift,October 2006 *Please refer to Chapter 7, Special Issues, under Classification and Valuation of Personal Computers(PCs) and Other Equipment, for more information. CBOE_PP_010998 Page 11 4.4 2007 REPLACEMENT COST NEW FACTORS 2007 PERSONAL PROPERTY COST FACTOR TABLE Industry Category Number Year Acquired 1 2 3 4 5 6 1981 1.88 1.84 1.74 1.87 1.84 1.79 1982 1.80 1.76 1.67 1.80 1.77 1.73 1983 1.76 1.72 1.64 1.75 1.74 1.68 1984 1.72 1.68 1.59 1.70 1.69 1.63 1985 1.69 1.65 1.57 1.67 1.66 1.61 1986 1.68 1.64 1.55 1.65 1.64 1.60 1987 1.65 1.62 1.52 1.62 1.62 1.57 1988 1.58 1.55 1.46 1.56 1.55 1.51 1989 1.50 1.48 1.40 1.48 1.47 1.44 1990 1.46 1.44 1.36 1.44 1.43 1.40 1991 1.44 1.41 1.34 1.42 1.40 1.38 1992 1.42 _ 1.39 1.33 1.40 1.38 1.36 1993 1.39 1.37 1.31 1.36 1.34 1.33 1994 1.35 1.33 1.28 1.32 1.30 1.29 1995 1.31 1.29 1.24 1.28 1.26 1.26 1996 1.29 1.27 1.22 1.26 1.24 1.24 1997 1.27 1.25 1.21 1.24 1.22 1.22 1998 1.26 1.24 1.20 1.23 1.21 1.22 1999 1.25 1.24 1.20 1.23 1.20 1.21 2000 1.23 1.22 1.18 1.20 1.18 1.19 2001 1.22 1.21 1.17 1.20 1.17 1.19 2002 1.21 1.20 1.16 1.19 1.16 1.18 2003 1.19 1.18 1.15 1.17 1.15 1.16 2004 1.15 1.14 1.12 1.13 1.12 1.13 2005 1.07 1.07 1.06 1.06 1.06 1.06 2006 I 1.00 I 1.00 I 1.00 I 1.00 ] 1.00 I 1.00 Source: Marshall& Swift,October 2006 15-A5-OPT ARL VOL 5 2-89 Rev 1-07 1OE_PP_010998 Page 12 4.5 2007 REPLACEMENT COST NEW FACTORS CONTINUED 2007 PERSONAL PROPERTY COST FACTOR TABLE Industry Category Number Year Acquired 7 8 9 10 11 12 13 1981 1.86 1.88 1.89 1.87 1.85 1.89 1.00 1982 1.76 1.80 1.81 1.77 1.79 1.77 1.00 1983 1.72 1.77 1.79 1.74 1.76 1.75 1.00 1984 1.69 1.72 1.74 1.70 1.71 1.72 1.00 1985 1.67 1.69 1.72 1.68 1.69 1.70 1.00 1986 1.65 1.68 1.71 1.67 1.68 1.70 1.00 1987 1.63 1.65 1.69 1.65 1.67 1.70 1.00 1988 1.58 1.59 1.61 1.60 1.57 1.63 1.00 1989 1.51 1.51 1.52 1.52 1.49 1.55 1.00 1990 1.46 1.47 1.48 1.48 1.46 1.51 1.00 1991 1.42 1.44 1.46 1.45 1.44 1.47 1.00 1992 1.40 1.42 1.44 1.44 1.44 1.46 1.00 1993 1.36 1.40 1.42 1.42 1.43 1.45 1.00 1994 1.33 1.36 1.38 1.39 1.39 1.42 1.00 1995 1.29 1.31 1.33 1.34 1.33 1.37 1.00 1996 1.27 1.29 1.31 1.31 1.31 1.34 1.00 1997 1.25 1.27 1.29 1.30 1.30 1.32 1.00 1998 1.23 1.26 1.28 1.28 1.30 1.30 1.00 1999 1.22 1.26 1.28 1.28 1.30 1.30 1.00 2000 1.20 1.24 1.26 1.26 1.28 1.28 1.00 2001 1.20 1.23 1.24 1.25 1.27 1.26 1.00 2002 1.19 1.22 1.24 1.24 1.27 1.25 1.00 2003 1.17 1.20 1.21 1.21 1.25 1.23 1.00 2004 1.13 1.16 1.17 1.17 1.20 1.18 1.00 2005 1.06 1.07 1.08 1.07 1.10 1.09 1.00 2006 I 1.00 I 1.00 I 1.00 I 1.00 I 1.00 I 1.00 I 1.00 Source: Marshall& Swift,October 2006 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 398 13 4.6 2007 COST INDEX - FIXTURES/LEASEHOLD IMPROVEMENTS June 30,2006 Level of Value This cost index is provided to assist the assessor in relating original or historical costs of fixtures or leasehold improvements to the real property level of value. The property may be valued using real property appraisal records for computations and should be assessed to the owner of record. When using this method of valuation, the property must be classified and abstracted as real property improvements. The factors are useful only in the cost approach when attempting to factor historical costs to the correct level of value. All cost approach value estimates must be reconciled to the sales comparison (market) and income approaches to value as with other real property improvements. The factors found in this table are for estimating replacement costs only and do not include an allowance for depreciation. 2007 FIXTURES/LEASEHOLD IMPROVEMENTS COST FACTOR TABLE Year Acquired Factor 1981 2.09 1982 2.03 1983 1.96 1984 1.88 1985 1.83 1986 1.82 1987 1.81 1988 1.77 1989 1.74 1990 1.69 1991 1.67 1992 1.64 1993 1.57 1994 1.51 1995 1.47 1996 1.46 1997 1.41 1998 1.39 1999 1.35 2000 1.28 2001 1.27 2002 1.24 2003 1.21 2004 1.13 2005 1.06 2006 1.00 Source: Marshall& Swift,October 2006 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 P 010998 Page 14 4.7 AVERAGE ECONOMIC LIFE ESTIMATES The average economic life estimates are provided for assistance in applying the percent good depreciation tables for each type of property being valued. The economic life recommendations are based upon the Class Life Asset Depreciation Range published by the Internal Revenue Service, Marshall and Swift Co., and other sources. Further information about the estimates may be found in I.R.S. publication 946, "How To Depreciate Property", available from the I.R.S. The economic life estimates are based on average national service lives and assume normal use and maintenance of the property. Use of the appropriate economic life estimate accounts for typical physical depreciation and functionalltechnological obsolescence for the personal property within the valuation process. Use of economic lives that differ from those in the estimates must be documented with specific market information. Counties and taxpayers are encouraged to provide this documentation for review by the Division of Property Taxation for possible update of existing published lives. For specific types of equipment, economic life estimates were developed based on studies completed by the Division of Property Taxation. 15-AS-DVT ARL VOL 5 2-89 Rev 1-07 PP 010998 Page 15 4.8 PROPERTY TYPE Recommended Economic Life (years) COMMERCIAL Wholesale Trade Level Wholesale trade machinery equipment,and furnishings 9 Retail Trade Level Retail trade machinery equipment,and furnishings 9 Service Trade Level Adding machines, calculators 6 All terrain vehicles (ATVs)For addt'1 info.,see Chapter 7 6 Amusement parks 12 Automated teller machines (ATMs):see Chapter 7 Computer/electronic components/portion 4* Structural housing 10 Auto repair shops 10 Bank vault doors 20 Barber and beauty shops 10 Cable television: Digital TV set-top boxes 4* Subscriber converters,other than digital 5 Test equipment 8 Origination equipment 9 Satellite receiving ground stations 9 Distribution&subscriber connection equipment 10 Headend equipment 11 Microwave systems 9 Computers—personal&accessories 3* Computers—other&stand-alone peripherals 4* Computer—integrated machinery&equipment 4 Construction equipment, general 6 Copiers and duplicators 6** Data handling equipment, except computers 6 Electronic equipment, except computers or gaming 6 Gaming: see Chapter 7 Electronic(e.g. slot machines) 5 Larger gaming personal property(e.g. tables) 10 Gas station equipment: Electronic fuel pumps 6 General 10 Tanks (e.g. above ground,propane,septic) 10 Tanks (e.g. below ground,double-walled,fuel) 20 Hydroelectric Generators 20 Golf carts 6 Laundry and dry cleaning 10 Commercial Continued on next page * Use appropriate computer percent good table 2007. **Use the copier percent good table 2007. Source:Division ofProperty Taxation,Marshall& Swift, &I.R.S. 15-AS-DPT ARL VOL 5 2-89 Rev 1.07 010998 'age 16 4.9 PROPERTY TYPE Recommended Economic Life (years) COMMERCIAL(continued) Service trade level(continued/ Medical equipment For addt'l info.see Chapter 7 3 to 10 Meter and stamp equipment 6 Office furniture 10 Pedicabs 10 Photo processing equipment(Electronic) 6 Port-a-potty 10 Radio and television broadcasting 6 Recreation and amusement 10 Restaurant and bar(all) 10 River Rafts 10 Shopping carts 5 Signs (Billboard and Monument) 20 Signs (Other) 10 Snow cats: For addt'l info.see Chapter 7 Heavy use(e.g. snowgrooming operations) 6 Moderate use(e.g. transportation operations) 10 Storage tanks: Tanks (e.g. above ground,propane,septic) 10 Tanks(e.g. below ground,double-walled, fuel) 20 Telecommunication machinery and equipment 4 Theater 10 Telecommunication towers 20 Typewriters 6 Vending machines 10 Video machines (arcade) 6 RESIDENTIAL/COMMERCIAL Residential rental furnishings 10 Apartment,hotel and motel furnishings 10 NATURAL RESOURCES Mining-Metallic and Nonmetallic Mining, quarrying, &milling equipment 10 Petroleum and Natural Gas Exploration, drilling 6 High-technology drilling rigs 10 Production(Excluding pipelines) 14 Marketing,retail 9 Refining 16 Timber Logging 6 Sawmills,permanent 10 Sawmills,portable 6 Source:Division of Property Taxation,Marshall&Swift &LR.& 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 CBOE_PP_010998 Page 17 4.10 PROPERTY TYPE Recommended Economic Life (years) INDUSTRIAL Manufacturing Trade Level Aerospace 10 Apparel and fabricated textiles 9 Bakeries and Confectionery 12 Brewery 12 Canneries and frozen food 12 Cement manufacture 20 Cereal,flour,grain and mill products 17 Chemicals and related products 10 Clay and gypsum products 15 • Concrete manufacture 15 Dairy products manufacturing 12 Electrical equipment manufacturing 10 Electronic equipment manufacturing 6 Fabricated metal products 12 Special tools 3 Food and beverage production 12 Special handling devices 4 Forklifts 10 Glass and glass product 14 Special tools 3 Jewelry 12 Lumber,wood products and furniture 10 Machinery (not otherwise listed in this section) 10 Meat packing 12 Motion picture and television production 12 Paint and varnish 10 Plastics and plastic products 11 Special tools 3 Printing and publishing 11 Professional and scientific instruments 10 Paperboard and pulp 10 Rubber products 14 Special tools 4 Semi-conductor manufacturing: General 5 Research and development 3 Test equipment 5 Wafer fabrication 3 Soft drink bottling 12 Steel and related products 15 Stone products 15 Sugar and sugar products 18 Source:Division of Property Taxation,Marshall& Swift & I.R.S. 15-AS-DPt ARL VOL 5 2-89 Rev 1-07 :BOE_PP_010998 Page 18 4.11 PERCENT GOOD TABLE The personal property percent good table is provided to assist the assessor in estimating the replacement cost new less normal depreciation (RCNLD). The column headings represent the average service life expectancy of the personal property being appraised. Each column contains the percent good factor for a specified age in the life of the property. Percent good tables measure the value remaining in personal property. Depreciation tables measure the loss in value at a specified age. The factor shown in the columns of the percent good table represents the percentage of RCN remaining at a specified age. The general percent good tables are built upon the following assumptions: 1. Iowa State University property retirement& depreciation studies 2. A specified rate of return 3. Average condition and usage of typical property The general percent good table is generic in nature. It was designed to be generally useful for the majority of personal property. It is not specific to any particular industry or type of personal property. The table was designed to account for normal physical depreciation. Use of the table with the appropriate economic life estimate accounts for typical physical depreciation and functional/technological obsolescence for the personal property within the valuation process. Additional functional/technological and/or economic obsolescence may also exist. If documented to exist, additional functional and economic obsolescence must be measured in the marketplace either using the market approach or rent loss methods. In addition, any adjustments to the percent good due to the condition of the subject property must be defensible and documented. The minimum percent good shown for each of the columns is useful as a guide to residual value. It is not absolute and must be reconciled with value in use information at the retail "end user"trade level for similar types of property. If the market information shows that the actual value of personal property is lower than the value developed by using the minimum percent good, the use of the minimum percent good should be rejected in favor of the lower value. The actual value of the personal property must be determined as long as the personal property is taxable. If the cost-calculated value is lower than the market and/or income approach developed value in use, when the personal property reaches its minimum percent good, the assessor should review the original cost, all assigned factors, the physical condition of the property, and other pertinent contributors to value. If these are correct, the assessor must use the cost approach value as the actual value of the personal property pursuant to § 39-1-103(13Xa), C.R.S. As the personal property under appraisal ages, the cost approach becomes less indicative of the property value. After fifteen years of age, the recommended valuation urocedure is to measure the value of depreciated equipment directly in the marketplace, if possible. To use the table, the assessor must determine the economic life and the effective age of the subject property. The percent good may be determined by moving across the columns until the one specified for the economic life is reached and then down this column to the point that reflects the effective age of the property. 15-AS-OPT ARL VOL 5 2.89 Rev 1-07 :6OE_PP_010998 Page 19 4.12 Example: ersonal Economic Percent roperty Life Age RCN Good RCNLD Desk 10 years 6 years $1,755 55% $965 The assessor must also consider functional and economic obsolescence, abnormal physical condition, or other factors that might affect the value of the equipment. The assessor should also consider the frequency and extent of maintenance to the property. Extensive maintenance or reconditioning of the property may extend the economic life of the property just as a lack of maintenance may shorten the economic life. DEPRECIATED VALUE FLOOR In the year in which the personal property has reached its minimum percent good, the applicable Replacement Cost New (RCN) trending factor in use at that time is "frozen" and the Level of Value(LOV)adjustment factor is "frozen"at 1.0. For the assessment years that follow, the RCNLD value does not change until the personal property is permanently taken out of service. An exception to this rule applies when the property has been reconditioned to extend its remaining economic life. Even though the personal property has been permanently taken out of service, but has not been scrapped or sold, it still has value. However, additional functional and/or economic obsolescence may exist. It is possible that the market or income approach may indicate a lower value than the personal property's minimum percent good. In addition, as property ages, the use of original installed cost multiplied by trending factors may not yield reasonable RCN values. Any RCNLD estimate should be crosschecked with sales comparison (market) and income information sources, if possible, and the appropriate value used. VALUATION OF USED PERSONAL PROPERTY The valuation of used personal property requires that a decision be made concerning the remaining economic life of the property. If the personal property's elapsed age from its actual year of manufacture, or estimated effective year of manufacture, is equal to or greater than the number of years in which the personal property would have reached its fully depreciated value floor, then the price paid for the personal property is to be treated as RCNLD and "frozen" at that value. RCN trending and percent good factors will not be applied to the frozen value. The LOV adjustment factor is "frozen"at 1.0 and will remain 1.0 until the property is taken out of service,sold, or retired. An exception to this rule applies when the personal property is reconditioned to extend its remaining economic life. Then the reconditioned property is treated as new personal property and the formerly frozen value is treated as acquisition cost that is subject to depreciation over a complete economic life of the personal property. Even though personal property has been permanently taken out of service, but has not been scrapped or sold, it still has value. However, additional functional and/or economic obsolescence may exist. 15-AS-DPT ARL VOL 5 2.89 Rev 1-07 CBOE_PP_010998 Page 20 4.13 If the elapsed age from the year of manufacture, or estimated effective year of manufacture, is less than the number of years when the personal property would have reached its depreciated value floor, as evidenced in its recommended economic life from the preceding tables, then the property is treated as new personal property and the owner's acquisition cost is subject to depreciation over the complete economic life as would be used for new personal property. However,the resulting value should be compared to the sales comparison(market) value for the personal property,if possible. 2007 GENERAL PERCENT GOOD TABLE AVERAGE ECONOMIC LIFE IN YEARS 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 1 69 78 83 87 89 91 92 94 94 95 96 96 97 97 98 98 98 98 2 39 55 65 72 77 81 84 87 89 90 91 92 93 94 95 95 96 96 3 18 35 48 58 65 71 76 79 82 85 87 88 90 91 92 93 94 94 4 15 19 32 44 53 61 67 71 75 79 81 84 86 87 89 90 91 92 5 15 20 32 41 51 57 63 68 72 76 79 81 83 85 87 88 90 6 15 21 31 40 48 55 61 66 70 74 77 80 82 84 85 87 7 15 22 32 40 47 54 60 64 68 72 75 78 80 82 84 8 15 23 32 39 47 52 58 63 67 71 74 77 79 81 W 9 15 24 32 39 46 52 57 62 66 69 73 76 78 O 10 15 25 32 40 45 51 56 62 65 69 72 75 11 15 26 32 40 46 52 57 60 65 69 72 12 22 27 33 40 46 51 55 60 65 68 • 13 15 24 29 36 40 46 49 56 61 64 F 14 15 26 30 36 42 46 52 57 60 U 15 20 24 31 37 43 48 52 56 • 16 15 22 25 32 38 43 48 52 4, 17 15 24 27 33 39 44 48 W 18 15 26 28 34 39 44 19 22 24 30 35 40 20 15 20 26 31 36 21 19 22 28 33 22 15 19 24 30 23 15 21 27 24 15 24 25 21 26 15 Source: Division of Property Taxation 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 CBOE_PP_010998 Page 21 4.14 Using market studies, the following table has been developed for Personal Computers (PCs)and Accessories: Percent Good Table 2007 Average Economic Life Age 3 EFF 1 44 2 23 A 3 13 G 4 7 E Source: Division of Property Taxation Using market studies, the following table has been developed for Other Computer Equipment Including Computer Peripherals: Percent Good Table 2007 Average Economic Life Age 4 EFF 1 50 2 36 A 3 22 G 4 13 E 5 7 Source:Division of Property Taxation For personal property classified as Computer-integrated Machinery and Equipment, a four (4) year economic life is assigned. The four (4) year life depreciation table found in the General Percent Good Table in this section should be used. If you have questions concerning personal computers (PCs) and accessories, other computer equipment including stand-alone computer peripherals, or computer-integrated machinery and equipment, please refer to Chapter 7, Special Issues, under Classification and Valuation of Personal Computers(PCs) and Other Equipment. 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 CBOE_PP_010998 Page 22 4.15 Using market studies,the following table has been developed for Copiers: Percent Good Table 2007 Average Economic Life Ale 6 EFF 1 54 2 46 A 3 36 G 4 32 E 5 29 6 26 7 20 Source: Division of Property Taxation Copiers have a six(6)year economic life and should be"frozen"in the seventh year at the 20 percent good. In the seventh year the LOV adjustment factor is "frozen" at 1.0 and will remain 1.0 until the personal property is taken out of service,sold, or retired. 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 CBOEPP_010998 Page 23 4.16 LEVEL OF VALUE ADJUSTMENT FACTORS The following table contains the indexes for adjusting current actual value of personal property to the level of value (LOV) in effect for real property as specified by § 39-1-104(12.3Xa)(I), C.R.S. The procedure involves the multiplication of the assessment date actual value estimate by the appropriate LOV factor for the type of property being valued. When personal property reaches its fully depreciated value floor the actual value should be determined and frozen. The LOV adjustment factor is "frozen" at 1.0 and will remain 1.0 until the property is taken out of service,sold,or retired. Example: ersonal Industry LOV Actual roperty Number Age RCNLD Factor Value Desk 3 6 years $965 0.98 $946 2007 PERSONAL PROPERTY LOV FACTOR TABLE June 30,2006 Level of Value Industry Number LOV Factor 1 0.98 2 0.98 3 0.98 4 0.98 5 0.99 6 0.98 7 0.99 8 0.98 9 0.98 10 0.98 11 0.97 12 0.98 13 1.00 Source: Division of Property Taxation and Marshall&Swift 15-AS-DPT ARL VOL 5 2-89 Rev 1-07 CODE PP_010998 Page 24 . _, . BURLESON COOKE LLR j •roams a ADVISOaf Diva Dial 7115541112 DeeaFa115.5541117 5mvA)d+oemgk.mm RECEIVED July 3,2007 JUL 03 1007 Via Hand Delivery WELD COUNTY ASSESSOR Mr. Christopher N. Woodruff GREELEY. COLORADO Weld County Assessor 1400 N. 17th Avenue Greeley,Colorado 80631 RE: Letter of Objection and Protest(PP)Year 2007;Position Papers in Support of Proposed Valuations. Dear Mr. Woodruff: This letter is being submitted in support of the letter of objection and protest regarding • personal property filed with your office for tax year 2007 for the taxpayers reflected in Exhibit "A". Taxpayers set forth in the body of these working papers, in part, their explanation in support of proposed valuations. • Determination of Actual Value Underground fuel storage tanks rusn owned by these taxpayers in Weld County constitute a significant portion of taxpayers' personal prolnaty assessed by the Weld County Assessor. Taxpayers' business personal property must be assessed based on its actual value. Under Colorado law, actual value is synonymous with market value. Market value represents what a willing buyer would pay a willing seller under normal economic conditions. In other words,the most probable price for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Although Colorado statutes require the application of the cost, market and income approaches to appraisal where applicable, the Constitutional mandate is to determine the property's actual value. As such,the ultimate determination must be what a willing buyer would pay a willing seller for the business personal property. According to the Division of Property Taxation ARL's, which the assessors are bound to comply with, the assessor must examine the "characteristics and condition of [a parcel of) property" to determine a "clear, current and detailed description of the subject property before estimating value." If circumstances exist under which the three (3) appraisal methods do not provide a clear basis for determining actual value, the assessor should look to all existing 100O1536111 711 Loublaria Street,Suite 1701 , Hesston,Tea 77002 Telephone: 713.358.1700 Fox: 713.358.1717 110999 age 25 information in an effort to ensure that its determination of actual value is accurate"to the extent which is equitably and practically possible." It is only by the examination and consideration of all information that the true nature and physical condition of the personal property may be determined. Based on the unique characteristics of a UST, the cost, market and income approaches, as employed by the Weld County Assessor's Office, do not provide an accurate basis for determining what a willing buyer would pay a willing seller. Based on the physical characteristics and regulatory requirements regarding UST's in Colorado, the value of a used UST as measured by the willing buyer-willing seller standard is virtually zero. There is no question that during the removal process the vast majority of UST's cannot maintain structural integrity and will disintegrate. Assuming for the purposes of argument that a used UST were to maintain its structural integrity upon removal, a hypothetical buyer must comply with federal and state regulations regarding the inspection, licensing and recertification of a UST prior to reuse. Furthermore, costs arising from the obligatory administrative, licensing and certification measures may be substantial,and would necessarily be taken into consideration by any willing buyer. These obligatory requirements are cost prohibitive and result in a practical situation in which no rational willing buyer will purchase a used UST and incur the loss and/or potential liability. The UST's owned by taxpayers are of various ages, but all have been subjected to petroleum substances for a period of time sufficient to result in the presence of residual amounts of these materials within the personal property itself. Any resale of a UST would entail a willing buyer expending significant amounts to remove, transport, test, recertify and relicense the UST being purchased. For example,Colorado Department of Labor and Employment, Division of Oil and Public Safety Storage Tank Regulations require the performance of numerous measures prior to the removal and/or replacement of a UST. Any party removing or replacing a UST must notify the Director of its intended action. Upon removal,that party must ensure that all residual fuel materials have been removed so that no more than 2.5 centimeters (one inch) of residue, or .3 percent by weight of the total capacity of the UST remain in the system. Further, the party must measure for the presence of a release from the UST where contamination is most likely to be present at the site. This process necessarily entails detailed and very costly excavation and testing of soils. Extensive records must be maintained by the seller demonstrating compliance with excavation and closure requirements under Colorado law. Finally the underground storage tank itself must be removed. A UST tank owner is obligated to perform these measures by state and/or federal law. These statutory obligations are by no means an all inclusive list, and the actual measures required may be much more burdensome. These measures result in significant transactional costs which are passed on to a buyer by the seller of a used UST. In an effort to deny the real world effect of these regulatory obligations upon the marketplace, the assessors have substituted cost for actual value. As a result, the assessors' valuation of taxpayer's business personal property does not reflect what a willing buyer would pay a willing seller for the property, and are thus, erroneous. The reality of the marketplace is that for much of taxpayer's business personal property,little to no market exists. As a result,any determination of actual value by the Weld County Assessor's Office which fails to consider the effect of these regulatory obligations and the physical characteristics of a used UST, and to allocate an appropriate deduction to the actual value, is erroneous based on the express iooasmssil CBOE_PP_010998 Page 26 provisions of the Colorado Constitution, statutes, case law and Division of Property Taxation ARL's. Respectfully Submitted, Christopher C.Rosas CO Bar No.: 33018 BURLESON COOKE,L.L.P. 711 Louisiana St.,Ste.711 Houston,Texas 77002 (Voice): 713358.1712 (Facsimile) 713.358.1717 Attorney for Taxpayer, Diamond Shamrock Stations,Inc. and Valero Diamond Metro,Inc. Exhibit"A" Taxpayers and Schedule Numbers Diamond Shamrock Stations,Inc. Schedule Numbers(PP): P0009071 095913300008; P0014846 096131416003; Valero Diamond Metro,Inc. Schedule Number(PP): P0012682 147106132016. -End- CBOE_PP 010998 Page 27 PANEL ON COMBOLIDATRO NULTIDISTRICT LITIGATION Colorado Supreme Court D Two E. 14th Ave. , 4th Floor Y' Denver, CO 80203 D FEB i Sttocrav nM17 DISTRICT COURT, ADAMS COUNTY, COLORADO ATTORNEY'S OFFICE Case No. 06 CV 1147 Plaintiffs: CneNa 07MD[A8 VALERO DIAMOND METRO, INC. , DIAMOND SHAMROCK REFINING AND MARKETING COMPANY, DIAMOND SHAMROCK STATIONS, INC. , and AUTOTRONICB SYSTEMS, INC. , v. Defendants: BOARD OF COUNTY cominspionlms OF ADAMS COUNTY, acting as the BOARD OF EQUALIZATION, and GIL REYES, TAX ASSESSOR OF ADAMS COUNTY. DISTRICT COURT, ARAPAHOE COUNTY, COLORADO Case No. 06 CV 4921 Plaintiff., VALERO DIAMOND METRO INC. , DIAMOND SHAMROCK STATIONS, INC. , and TOC-DS COMPANY, v. Defendants: BOARD OF COUNTY COMMISSIONERS OF ARAPAHOE • COUNTY, acting as the BOARD OF EQUALIZATION, and EDWARD HOSIER, TAX ASSESSOR OP ARAPAHOE COUNTY. CBOE_PP_010998 Page 28 PANEL ON CONSOLIDATED MULT'IDISTRICT LITIGATION Colorado Supreme Court Two E. 14th Ave. , 4`h Floor Denver,- CO 80203 DISTRICT COURT, BOULDER COUNTY, COLORADO Case No. 06 CV 1130 Plaintiffs, Cage No.07MDL0$ (CoaYd) - VALERO DIAMOND METRO, INC. , DIAMOND SHAMROCK STATIONS, INC. , DIAMOND SHAMROCK REPINING AND MARKETING COMPANY, and TOC-DS COMPANY, v. Defendants: BOARD OF COUNTY COMMISSIONERS OF BOULDER COUNTY, acting as the BOARD OF EQUALIZATION, and CINDY DOMENICO, TAX ASSESSOR OF BOULDER COUNTY_ DISTRICT COURT, BROOMFIELD COUNTY, COLORADO Case No. 06 CV 243 Plaintiffs, DIAMOND SHAMROCK STATIONS, INC. , v. Defendants, BOARD OF COUNTY COMMISSIONERS OP BRO0 FIELD COUNTY, acting as the BOARD OF EQUALIZATION, - and VICKIE BROWN, TAX ASSESSOR OF BROCMFIELD COUNTY. CBOE_PP_010998 Page 29 PANEL ON ommacummamn MULTIDISTRICr LITIGATION Colorado Supreme Court Two E. 14 Ave. , 4th Floor Denver, CO 00203 DISTRICT COURT, CLEAR CREEK COUNTY, COLORADO Case No. 06 CV 95 Plaiaii!!s s Case Na 07MDL00 (Cont'd) VALERO DIAMOND METRO, INC. , v. Defendants: BOARD OF COUNTY COMMISSIONERS OF CLEAR CREEK COUNTY, acting as the BOARD OF EQUALIZATION, and DIANE SETTLE, TAX ASSESSOR OF CLEAR CREEK COUNTY. DISTRICT COURT, DENVER COUNTY, COLORADO Case No. 06 CV 9507 Plaintiffs VALERO DIAMOND METRO INC. , and DIAMOND SHAMROCK STATIONS, INC. , v. Defendants, BOARD OF COUNTY COMMISSIONIRS OF DENVER COUNTY, acting as the BOARD OF EQUALIZATION, and- 301W RAGAN, TAX ASSESSOR OF DENVER COUNTY. CBOE_PP_010998 Page 30 PANEL ON OONSOLIDAT= MIILSIDISTRICT LITIGATION Colorado Supreme Court Two B. 14th Ave. , 4ti Floor Denver, CO 80203 DISTRICT COURT, DOUGLAS COUNTY, COLORADO Case No. 06 CV 1815 Cate Na 07MDLOS Plaintiffs: (Conrd) VALERO DIAMOND METRO, INC. , and DIAMOND SHAMROCK STATIONS, INC. , v. Defendants: HOARD OF COUNTY COMMISSIONERS OF DOUGLAS COUNTY, acting as the BOARD OF EQUALIZATION, and EDITH N. HOY, a/k/a NIRII HOY, TAX ASSESSOR OF DOUGLAS COUNTY.. DISTRICT COURT, EL PASO COUNTY, COLORADO Case No. 06 CV 3715 Plaintiffs: VALERO DIAMOND METRO INC. , DIAMOND SHAMROCK STATIONS, INC. , and DIAMOND SHAMROCK REFINING AND MARKETING COMPANY, v. Defendants: BOARD OF COUNTY-CUMIISSIONIRS OF EL PASO COUNTY, acting as the BOARD OF EQUALIZATION, and JOHN BASS, TAX ASSESSOR OF EL PASO COUNTY. CBOE_PP_010998 Page 31 PANEL ON CONSOLIDATED N0LTIDISTRIC! LITIGATION Colorado Supreme Court Two B. 14th Ave. , 4th Floor Denver, CO 80203 DISTRICT COURT, GARFIELD COUNTY, COLORADO Case No. 06 CV 293 Case No:07MDL08 Plaintiffs (Con(d) VALERO DIAMOND METRO, INC. , v. Defendants: BOARD OF COUNTY COMMISSIONERS OF GARFIELD COUNTY, acting as the BOARD OF EQUALIZATION, and SHANNON HURST, TAX ASSESSOR OF GARFIELD COUNTY. DISTRICT COURT, JEFFERSON COUNTY, COLORADO Case No. 06 CV 4492 Plaintiffs, VALERO DIAMOND METRO INC. , DIAMOND SHAMROCK STATIONS, INC. , DIAMOND SHAMROCK REFINING AND MARKETING COMPANY, v. Defendants: BOARD OF COUNTY COMMISSIONERS OF JEFFERSON COUNTY, acting as the BOARD OF EQUALIZATION, and JIM EVERSON, TAX ASSESSOR OF JEFFERSON COUNTY. CBOE_PP010998 Page 32 PANEL ON CONSOLIDATED MOLTIDISTRICT LITIGATION Colorado Supreme Court Two E. 14th Ave. , 4th Floor Denver, CO 80203 • DISTRICT COURT, LA PLATA COUNTY, COLORADO Case No. 06 CV 185 Plaintiff Cage N :07MDLA8 (Coned) • VALERO DIAMOND METRO, INC: , v. • Defendants: BOARD OF COUNTY COMMISSIONERS OP LA PLATA COUNTY, acting as the BOARD OP EQUALIZATION, and CRAIG N. LARSON, TAX ASSESSOR OF LA PLATA COUNTY. DISTRICT COURT, LAZE COUNTY, COLORADO Case No. 06 CV 47 Plaintiffs, DIAMOND SHAMROCK STATIONS, INC. , v. Defendant's BOARD OF COUNTY COMMISSIONERS OF LAKE COUNTY, acting as the BOARD OF EQUALIZATION, and HOWARD TRITZ, TAX ASSESSOR OF LAKE COUNTY. CBOE_PP_010998 Page 33 PANEL ON CONSOLIDATED MOL/fIDISTRICT LITIGATION Colorado Supreme Court Two E. 14 Ave. , 4th Floor Denver, CO 80203 DISTRICT COURT, LARTNER COUNTY, COLORADO Case No. 06 CV 781 Plaintiffs' Case NaO7MDLO8 (Confd) VALERO DIAMOND METRO, INC. , DIAMOND SHAMROCK STATIONS, INC. , and DIAMOND SHAMROCK REPINING AND MARKETING COMPANY, v. Defendants: BOARD OF COUNTY COMMISSIONERS OF LARIMER COUNTY, acting as the BOARD OP EQUALIZATION, and LARRY G. JOHNSON, TAX ASSESSOR OF LARIMER COUNTY. DISTRICT COURT, MEGA COUNTY, COLORADO Case No. 06 CV 330 Plaintiffs VAT.RPO DIAMOND METRO, INC. , v. Defendants' BOARD OF COUNTY COMMISSIONERS OF MEGA COUNTY, acting as the BOARD OF EQUALIZATION, and CURTIS BELCHER, TAX ASSESSOR OP MESA COUNTY. C8OE_PP_010998 Page 34 PANEL. ON CONSOLIDATED MULTIDISTRICT LITIGATION Colorado Supreme Court Two B. low` Ave. , 40° Floor Denver, CO 80103 . DISTRICT COURT, PUEBLO COUNTY, COLORADO Case No: 06 CV 1385 Plaintiffs: Case NO:07MDIA8 (Gonad) VALERO DIAMOND METRO, INC. , and DIAMOND SHAMROCK REFINING AND MARXETING COMPANY, v. ; Defendants: BOARD OP COUNTY COMMISSIONERS OF PUEBLO COUNTY, acting as the BOARD OF EQUALIZATION, and VICTOR B. PLUTT, TAX ASSESSOR OF PUEBLO COUNTY. DISTRICT COURT, SUMMIT COUNTY, COLORADO Case No. 06 CV 230 Plaintiffs: VALERO DIAMOND METRO, INC. , and DIAMOND SHAMROCK REFINING AND MARKETING, v: Defendants: BOARD OF COUNTY COMMISSIONERS OF SUMMIT COUNTY, acting as the BOARD OF EQUALIZATION, and DENISE STEISKAL, TAX ASSESSOR OF SUMMIT COUNTY. CBOE_PP_010998 Page 35 PANEL ON CONSOLIDATED NOLTIDISTRICT LITIQITION Colorado Supreme Court Tiro E. 14th Ave. , 4th Floor Denver, CO 80203 DISTRICT COURT, TELLER COUNTY, COLORADO Case No. 06 CV 206 Plaintiff: Gee No:7MDLOB (Con t'd) DIAMOND SHAMROCK STATIONS, INC. , v. Defendants: BOARD OF COUNTY COMMISSIONERS OF TELLER COUNTY, acting as the BOARD OP EQUALIZATION, and ALAN JORDAN, TAX ASSESSOR OF TELLER COUNTY. DISTRICT COURT, MELD COUNTY, COLORADO Case No. 06 CV 630 Plaintiffs: VALERO DIAMOND METRO, INC. , and DIAMOND SHAMROCK STATIONS, INC. , v. Defendants: BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, acting as the BOARD OF EQUALIZATION, and STAN SESSIONS, TAX ASSESSOR OF WELD COUNTY. CERTIFICATION TO THE CHIEF JUSTICE PURSUANT TO C.R.C:P. 42.1(h) CBOE_PP 010998 Page 36 Upon review of the Movants, Valero Diamond Metro, Inc. , Diamond Shamrock Refining and Marketing Company, Diamond Shamrock Stations, Inc. , TOC-DS Company and Autotronic Systems, Inc. 's Unopposed Motion for Transfer and Consolidation Pursuant to C.R.C.P. 42 .1, and now being sufficiently advised in the premises, IT IS THE DETERMINATION of the Panel that the above- referenced actions should be consolidated pursuant to C.R.C.P. 42.1 and that venue is proper in Douglas County. THE PANEL HEREBY CERTIFIES these actions to the Chief Justice pursuant to C.R.C.P. 42.1(h) and recommends that the Honorable Paul A. Ring, judge of the Eighteenth Judicial District, be assigned to hear these consolidated matters. IT IS ORDERED that all further proceedings in the district courts shall be stayed pending the Order Pursuant to C.R.C.P. 42.1(i) by the Chief Justice. BY THE PANEL, February 14, 2007. SUSAN J. FESTAO Clerk of the Panel (`DOE t [ `.L ?� Chi ty Clerk CBOEPP010998 Page 37 Copies mailed via the State's Mail Services Division on 2/14/07. LX Christopher Roses Robert D. Clark 711 Louisiana St. , Ste. 1701 Assistant County Attorney Houston, TX 77002 100 Third Street Castle Rock, CO 80104 Joseph Pattor Don K. DeFord P.O. Box 221 108 8th Street, Ste. 219 Leadville, CO 80461 Glenwood Springs, CO 81601 Paul W. Hurcamb Franklin P. Celico 24 South Weber, Ste. 400 208 B. Lincoln Avenue Colorado Springs, CO 80903 P.O. Box 68 Breckenridge, CO 80424 Cyndy Giauque Robert W. Loeffler 915 Tenth Street P.O. Box 2000 P.O. Box 758 Georgetown, CO 80444 Greeley, CO 80632 Valerie J. Robison May Taylor P.O. Box 20,000 201 West Colfax, Dept. 1207 Grand Junction, CO 81502 Denver, CO 80202 Michael A. Koertje Michael A. Goldman P.O. Box 471 -679 East Second Avenue, Ste. C Boulder, CO 80306 Durango, Co 81301 Writer Mott John N. Franklin 100 Jefferson County Parkway 27 Bast Vernijo Avenue Golden, Co 80419 Colorado Springs, CO 80903 Taai Tellico Jeannine S. Haag One DesCombes Drive Ninth Floor, First Tower Bldg. Broomfield, CO 80020 P.O. Box 1606 Fort Collins, CO 80522 Daniel C. Xogovsek Jennifer Wascak 215 West 10th Street 450 South 4th Avenue Pueblo, Co 81003 Brighton, CO 80601 • CBOE_PP_010998 Page 38 George Rosenberg Clerk of the Combined Court 5334 South Prince Street Adams County Justice Center Littleton, CO 80166 1100 Judicial Center Dr. Brighton, CO 80601 Honorable Thomas Eneor Honorable Cheryl L. Post Adams County Justice Center Arapahoe County Justice Cent. 1100 Judicial Center Dr. 7325 S. Potomac St. Brighton, CO 80601 Centennial, CO 80112 Clerk of the District Court Honorable Maria B. Berkenkotter Arapahoe County Justice Cent. Boulder County District Court 7325 S. Potomac St. P.O. Box 4249 Centennial, CO 80112 Boulder, CO 80306 Clerk of the Combined Court Honorable Chris Melonakis Boulder County District Court Broomfield County Court P.O. Box 4249 17 DeCcmbee.Dr. Boulder, CO 80306 Broomfield, CO 80020 Clerk of the Court Honorable Russell H. Granger Broomfield County Court Clear Creek District Court 17 DeCambes Dr. P. O. Box 367 Broomfield, CO 80020 Georgetown, CO 80444 Clerk of the Combined Court Honorable Sheila A. Rappaport Clear Creek District Court Denver District Court P. O. Box 367 1437 Bannock Street, Rm. 256 Georgetown, CO 80444 Denver, CO 80202 Clerk of the Combined Court Honorable Paul A. King Denver District Court Douglas County District Court 1437 Bannock Street, Rm. 256 4000 Justice Way, Ste. 2009 Denver, CO 80202 Castle Rock, CO 80109 Clerk of the Combined Court Honorable Edward S. Colt Douglas County District Court El Paso County District Court 4000 Justice Way, Ste. 2009 20 E. Vermijo Avenue Castle Rock, CO 80109 Colorado Springs, CO 80903 Clerk of the Combined. Court Honorable Daniel B. Petre El Paso County District Court Garfield County Courthouse 20 S. Vermijo Avenue 109 8th St. , Ste. 104 Colorado Springs, CO 80903 Glenwood Springs, CO 81601 CBOE_PP_010998 Page 39 Clerk of the Combined Court Honorable Christopher J. Munch Garfield County Courthouse Jefferson County District Court 109 Sth St. , Ste. 104 100 Jefferson County Parkway Glenwood Springs, CO 81601 Golden, CO 80401 Clerk of the Combined Court Honorable David L. Dickinson Jefferson County District Court La Plata County District Court 100 Jefferson County Parkway 1060 East 2'd Avenue Golden, CO 80401 Durango, Co 81301 Clerk of the Combined Court Honorable David R. Lass La Plata County District Court Lake County District Court 1060 Bast 2°d Avenue P.O. Box 55 Durango, Co 81301 Leadville, CO 80461 Clerk of the Combined Court Honorable Terence A. Gilmore Lake County District Court Larimer County Justice Center P.O. Box 55 201 La Porte Ave. , Ste. 110 Leadville, CO 80461 Fort Collins, CO 80521 Clerk of the Court Honorable Brian J. Flynn Larimer County Justice Center Mesa County District Court 201 La Porte Ave. , Ste. 110 P.O. Box 20,000 Fort Collins, CO 80521 Grand Junction, CO 81502 Clerk of the Combined Court Honorable Dennis Mee Mesa County District Court Pueblo Cty Judicial Bldg P.O. Box 20,000 320 K. 10th St. Grand Junction, CO 81502 Pueblo, CO 81003 Clerk of the Combined Court Honorable David R. Laos Pueblo Cty Judicial Bldg Summit County District Court 320 N. 10th St. P.O. Box 269 Pueblo, CO 81003 Breckenridge, CO 80424 Clerk of the District Court Honorable Thomas L. Kennedy Summit County District Court Teller -County Courthouse P.O. Box 269 P.O. BOx 2980 Breckenridge, CO 80424 Cripple Creek, CO 80813 Clerk of the Combined Court Honorable Roger A. Klein Teller County Courthouse Weld County District Court P.O. Box 2980 P.O. Box 2038 Cripple Creek, CO 80813 Greeley, CO 80632 CBOE_PP_010998 Page 40 Clerk of the Court Weld County District Court P.O. Box 2038 Greeley, CO 80632 Honorable Harlan Bocknun Chair, MDL Panel CBOE PP_010998 Page 41 NOTICE OF DENIAL OFFICE OF COUNTY ASSESSOR 1400 NORTH 17th AVE. Itrit GR 175698 PT 13-5-66 SITUS : 2720 35 GREELEY,Co 80631 AV GREELEY 00000 PHONE(970)353-3845,EXT.3650 www.e.o.weld.co.us !Elk OWNER: DIAMOND SHAMROCK COLORADO CHRISTOPHER C. ROSAS LOG 4239 BURLESON COOKE L.L. P PARCEL 095913300008 711 LOUISANA STREET, STE . 1701 ACCOUNT P0009071 HOUSTON, TX 77002 YEAR 2007 Owner: DIAMOND SHAMROCK The appraised value of property is based on the appropriate consideration of the approaches to value required by law. The Assessor has determined that your property should be included in the following category(ies): Personal property - Everything that is not included under the term real property. Personal property is typically portable or movable items such as equipment, furniture, and freestanding appliances . If your concern is the amount of your property tax, local taxing authorities(county,city,fire protection,and other special districts)hold budget hearings in the fall. Please refer to your tax bill or ask your Assessor for a listing of these districts,and plan to attend these budget hearings. The Assessor has carefully studied all available information,giving particular attention to the specifics included on your protest,and has determined the valuation(s)assigned to your property. The reasons for this determination of value are: Your personal property has been valued in accordance with colorado law and instructions published by the state Division of Property Taxation. Other personal property, similar in nature, has been consistently valued using the same statutory methods . r PETITIONER'S ASSESSOR'S VALUATION ›ErPEIPEY CLASSIFICATION ESTIMATE OF VALUE ACTUAL VALUE ACTUAL VALUE Z LLS PRIOR TO REVIEW AFTER REVIEW Cam- — PER eNAL cCbROFI-J 53820 53820 tor C LU U o ft' 6 TOTALS $ $ 53820 $ 53820 APPEAL DEADLINES: REAL PROPERTY-JULY 16,PERSONAL PROPERTY-JULY 20. If you disagree with the Assessor's decision,you have the right to appeal to the County Board of Equalization for further consideration. §39-S-I06(1)(a),C.R.S. TO PRESERVE YOUR APPEAL RIGHTS,YOU MAY BE REQUIRED TO PROVE THAT YOU FILED A TIMELY APPEAL; THEREFORE,WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF OF MAILING. 07/10/2007 By: Christopher M.Woodruff WELD COUNTY ASSESSOR DATE ADDITIONAL INFORMATION ON REVERSE SIDE NOD 207 02 x7/07 YOU HAVE THE RIGHT TO APPEAL THE ASSESSOR' S DECISION The County Board of Equalization will sit to hear appeals beginning July 2 and continuing through August 3 for real property (land and buildings) and personal property (furnishings, machinery, and equipment). § 39-8-104 and § 39- 8-107(2), C.R.S. APP1iA' 1PaC EI!fiIRES If you choose to appeal the Assessor' s decision, mail or deliver one copy of this completed form to the County Board of Equalization. To preserve your right to appeal, your appeal must be POSTMARKED OR DELIVERED ON OR BEFORE JULY 16 FOR REAL PROPERTY, AND JULY 20 FOR PERSONAL PROPERTY. WELD COUNTY BOARD OF EQUALIZATION 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Telephone (970) 356-4000 Ext. 4225 You will be notified of the time and place set for the hearing of your appeal. COMIIMIM OWEmYAU2,AT1ONI S'DETET14 NATIONS The County Board of Equalization must make a decision on your appeal and mail you a determination within five business days of that decision. The County Board must conclude its hearings and render decisions by August 3. TAXPV T2"RTGTITSTOfity riti(3 A"I'PEAT,'S` If you are not satisfied with the County Board of Equalization' s decision you must file within thirty days of the County Board of Equalization' s written decision with ONE of the following: Board of Assessment Appeals (BAA): 1313 Sherman Street, Room 315 Denver, Colorado 80203 Telephone (303) 866-5880 wvvw.dola.colorado.gov/baa District Court: 9th Avenue and 9th Street, P.O. Box C Greeley, Colorado 80632 Telephone (970) 356-4000, Ext. 4520 Arbitration: WELD COUNTY BOARD OF EQUALIZATION 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Telephone (970) 356-4000, Ext. 4225 If you do not receive a determination from the County Board of Equalization, contact the county board. If the county board is not going to mail a decision, you must file an appeal with the Board of Assessment Appeals by September 10th. TO PRESERVE YOUR APPEAL RIGHTS, YOU MUST PROVE YOU HAVE FILED A TIMELY APPEAL; THEREFORE, WE RECOMMEND ALL CORRESPONDENCE BE MAILED WITH PROOF OF MAILING. PETITION TO THE COUNTY BOARD OF EQUALIZATION In the space below, please explain why you disagree with the Assessor' s valuation. IN ACCORDANCE WITH § 39-8-106(1.5), C.R.S., IF YOUR APPEAL INVOLVES REAL PROPERTY, YOU MUST STATE YOUR OPINION OF VALUE IN TERMS OF A SPECIFIC DOLLAR AMOUNT. Attach additional documents as necessary. In support of the Petition to the County Board of Equalization of the denial by the County Assessor of the Written Letter of Objection and Protest; the Written Letter of Objection and Protest and all information submitted to the County Assessor is hereby adopted as the basis for the appeal to the County Board of Equalization. Petitioner requests that the County Board of Equalization examine this information and render its decision based on the written information submitted in support of Petitioners proposed valuations. Petitioners reserve the right to submit a ditional do uments prior to the hearing, Petitioner's estimate of value in regard to Schedule No. P0009071 is$11,800. 1 �, zt� , '?s LAS . 2ZRR DA IL E kIC)NA I URk.OEI IUN ,k ,II, NOD 207 62 87/07 Ad Valorem Tax IMM0 WENERGY CORPORATION WELD COUNTY COMMISSIONERS June 27, 2007 2111 JUL -3 A 3 41 RECEIVED Via First Class Mail Mr. Christopher N. Woodruff Weld County Assessor 1400 N. 17th Avenue Greeley, Colorado 80631 RE: 2007 Letter of Objection and Protest; Letter of Representation. Dear Mr. Woodruff: The purpose of this letter is to provide notice to your office that the following individual and law firm has been retained to represent the taxpayers set forth in Exhibit "A" in regard to the letter of objection and protest filed with your office for year 2007: Christopher C. Rosas Colorado Bar No. 33018 BURLESON COOKE L.L.P. 711 Louisiana Street, Ste. 1701 Houston, Texas 77002 (Telephone): (713) 358-1700 (Toll Free Voice): (866) 652-1717 (Facsimile): (713) 358-1717 Please note in your records that copies of all notices or communications by the Weld County Assessor's Office or the Weld County Board of County Commissioners should also be mailed to this office do Christopher C. Rosas. Please feel free to contact me with any questions. Respectfully, J n Aranda JA cc: /Weld County Board of County Commissioners 915 Tenth Street Greeley, Colorado 80632 400015108.i} Exhibit"A" Taxpayers and Schedule Numbers Diamond Shamrock Stations, Inc. Schedule Numbers (PP): P0009071 095913300008; P0014846 096131416003; Valero Diamond Metro, Inc. Schedule Number (PP): P0012682 147106132016. -End- {00015108.1} BURLESON COOKE L.L.P. ATTORNEYS & ADVISORS Christopher C.Rosas Duea Dial 713-358-1712 Direct Fax 713-358-1717 rin3?3(Feburiescalcixike corn wanv.burlesonr(oke rnv July 16, 2007 Via CM/RRR No. 7005 2570 0000 7260 7550 Weld County Board of Equalization 915 10th Street, P.O. Box 758 Greeley, Colorado 80632 Re: 2007 Letter of Objection and Protest(PP); Petitions to County Board of Equalization. Dear Sir or Madam: Pursuant to C.R.S. § 39-8-106, we hereby submit the enclosed Petition to the County Board of Equalization appealing the decisions of the Weld County Assessor regarding the Letter of Objection and Protest submitted by Petitioner. Also enclosed are copies of working papers submitted to the Weld County Assessor in support of the Petitioner's proposed valuations. We respectfully request that the County Board of Equalization examine this information and render its decisions based upon the written information submitted by Petitioners. In the event the County Board of Equalization does not grant, in whole or in part, the appeal from the Weld County Assessor's denial for the property for which the appeal is being made, please note in your records that copies of decisions should be mailed to the undersigned. Respectfully, BURLESO COOKE L.L.P. Christopher C. Rosas CCR Enclosures {00015912.1) 711 Louisiana Street, Suite 1701 Houston,Texas 77002 Telephone: 713.358.1 700 Fax: 713.358.1717 hBURLESON COOKE L.L.P. ATTORNEYS & ADVISORS 44 Christopher C.Roses Dina Dial 713-358-1712 Direct Pax 713-358-1717 rromdlburlesoncrx,ke corn www Innie+oneootie caw July 3, 2007 Via Hand Delivery Cam") r 30 M w cm`to cm Mr. Christopher N. Woodruff < > cc Weld County Assessorri 1400 N. 17th Avenue a Tt -4 N < - Greeley, Colorado 80631 4J OD RE: Letter of Objection and Protest(PP) Year 2007; Position Papers in Support of Proposed Valuations. Dear Mr. Woodruff This letter is being submitted in support of the letter of objection and protest regarding personal property filed with your office for tax year 2007 for the taxpayers reflected in Exhibit "A". Taxpayers set forth in the body of these working papers, in part, their explanation in support of proposed valuations. Determination of Actual Value Underground fuel storage tanks ("UST") owned by these taxpayers in Weld County constitute a significant portion of taxpayers' personal property assessed by the Weld County Assessor. Taxpayers' business personal property must be assessed based on its actual value. Under Colorado law, actual value is synonymous with market value. Market value represents what a willing buyer would pay a willing seller under normal economic conditions. In other words, the most probable price for which the appraised property will sell in a competitive market under all conditions requisite to a fair sale. Although Colorado statutes require the application of the cost, market and income approaches to appraisal where applicable, the Constitutional mandate is to determine the property's actual value. As such, the ultimate determination must be what a willing buyer would pay a willing seller for the business personal property. According to the Division of Property Taxation ARL's, which the assessors are bound to comply with, the assessor must examine the "characteristics and condition of [a parcel of] property" to determine a "clear, current and detailed description of the subject property before estimating value." If circumstances exist under which the three (3) appraisal methods do not provide a clear basis for determining actual value, the assessor should look to all existing ;00015368.1) 711 Louisiana Street, Suite 1 701 ' Houston, Texas 77002 Telephone: 713.358.1700 ' Fax: 713.358.1 717 information in an effort to ensure that its determination of actual value is accurate "to the extent which is equitably and practically possible." It is only by the examination and consideration of all information that the true nature and physical condition of the personal property may be determined. Based on the unique characteristics of a UST, the cost, market and income approaches, as employed by the Weld County Assessor's Office, do not provide an accurate basis for determining what a willing buyer would pay a willing seller. Based on the physical characteristics and regulatory requirements regarding UST's in Colorado, the value of a used UST as measured by the willing buyer-willing seller standard is virtually zero. There is no question that during the removal process the vast majority of UST's cannot maintain structural integrity and will disintegrate. Assuming for the purposes of argument that a used UST were to maintain its structural integrity upon removal, a hypothetical buyer must comply with federal and state regulations regarding the inspection, licensing and recertification of a UST prior to reuse. Furthermore, costs arising from the obligatory administrative, licensing and certification measures may be substantial, and would necessarily be taken into consideration by any willing buyer. These obligatory requirements are cost prohibitive and result in a practical situation in which no rational willing buyer will purchase a used UST and incur the loss and/or potential liability. The UST's owned by taxpayers are of various ages, but all have been subjected to petroleum substances for a period of time sufficient to result in the presence of residual amounts of these materials within the personal property itself Any resale of a UST would entail a willing buyer expending significant amounts to remove, transport, test, recertify and relicense the UST being purchased. For example, Colorado Department of Labor and Employment, Division of Oil and Public Safety Storage Tank Regulations require the performance of numerous measures prior to the removal and/or replacement of a UST. Any party removing or replacing a UST must notify the Director of its intended action. Upon removal, that party must ensure that all residual fuel materials have been removed so that no more than 2.5 centimeters (one inch) of residue, or .3 percent by weight of the total capacity of the UST remain in the system. Further, the party must measure for the presence of a release from the UST where contamination is most likely to be present at the site. This process necessarily entails detailed and very costly excavation and testing of soils. Extensive records must be maintained by the seller demonstrating compliance with excavation and closure requirements under Colorado law. Finally the underground storage tank itself must be removed. A UST tank owner is obligated to perform these measures by state and/or federal law. These statutory obligations are by no means an all inclusive list, and the actual measures required may be much more burdensome. These measures result in significant transactional costs which are passed on to a buyer by the seller of a used UST. In an effort to deny the real world effect of these regulatory obligations upon the marketplace, the assessors have substituted cost for actual value. As a result, the assessors' valuation of taxpayer's business personal property does not reflect what a willing buyer would pay a willing seller for the property, and are thus, erroneous. The reality of the marketplace is that for much of taxpayer's business personal property, little to no market exists. As a result, any determination of actual value by the Weld County Assessor's Office which fails to consider the effect of these regulatory obligations and the physical characteristics of a used UST, and to allocate an appropriate deduction to the actual value, is erroneous based on the express (00015368.I) provisions of the Colorado Constitution, statutes, case law and Division of Property Taxation ARL's. Respectfully Submitted, arel C gen- Christopher C. Rosas CO Bar No.: 33018 BURLESON COOKE, L.L.P. 711 Louisiana St., Ste. 711 Houston, Texas 77002 (Voice): 713.358.1712 (Facsimile) 713.358.1717 Attorney for Taxpayer, Diamond Shamrock Stations, Inc. and Valero Diamond Metro, Inc. CCR Exhibit"A" {00015368.) Exhibit "A" Taxpayers and Schedule Numbers Diamond Shamrock Stations, Inc. Schedule Numbers (PP): P0009071 095913300008; P0014846 096131416003; Valero Diamond Metro, Inc. Schedule Number (PP): P0012682 147106132016. -End- (00015108.1) .\ y N — / m " \ 9 Or LLI \ s CID \ � U' = r / � /g > $ \ \g \ » = 7a 2 CIC�\ 03 \\ _ 3 a \ j R 2 - m > 07/27/2007 FRI 11:39 FAX 713 358 1717 Burleson Cooke LLP 1i$001/003 • BURLESON COOKE L.L.P. ATTORNEYS & ADVISORS FACSIMILE TRANSMITTAL SHEET July 27,2007 • TO: FAX NCMIfl R: Clerk of the Board (970)352-0242 Weld County Board of Equalization FROM: Christopher C.Rosas Pages:3 s -- - ❑ URGENT O FOR Rii\'IlCW O PLEASE COMMENT D PLEASE REPLY NOTrs.•COMMF..NTS: Re: 2007 (PP) Petitions to County Board of Equalization;Administrative Denials Please see attached. Please call Burleson Cooke L.L.P.(713)358-1700 if all pages are not received. CONFIDENTIALITY NOTE: 'Ile documents accompanying this facsimile transmission contain information which is confidential and/or legally privileged. The information is intended only for the use of the individual or entity named above. If you arc not the intended recipient, you arc hereby notified that any disclosure, copying, distribution or the taking of any action in reliance on the contents of this alecopitd information is strictly prohibited. If you have received this facsimile in crmr,please immediately notify us by telephone to arrange for return of the original documents to us. 711 Louisiana Street,Suite 1701 (713)358-1700(Main) Houston,TX 77002 (713)358-1717(Pax) uriLi/ZUVI rxi 11:sy IAA /la sari 1/1/ Burleson uooice LLr isiuu /uus BURLESON COOKE L.L.P. ATTORNEYS & ADVISORS Christopher C.Roars Drat Dal 713.35S-1712 Dew Fox 7B-3511-2717 crouttissietaoxsioliertite www.WW0o.imelimow July 27,2007 Via Facsimile(970)352-0242 Weld County Board of Equalization Attn: Clerk to the Board 915 10th Street,P.O.Box 758 Greeley, Colorado 80632 Re: 2007 (PP)Petitions to County Board of Equalization;Administrative Denials. Dear Clerk: The purpose of this letter is to request administrative denials of the Petitions to the Board of Equalization regarding the 2007 appeals of business personal property for the Petitioners and schedule numbers set forth in Exhibit "A" of this letter. Further rights to appeal, in accordance with state law will be preserved. Please feel free to contact me with any questions. Respectfully, BURLESON COOKE L.L.P. ( I Cbristoph r C. Rosas CCR Enclosures {00016328.1} 711 Louisiana Street.Suite 1701 • Houston,Texas 77002 Telephone: 713.358.1700: Fox: 713.358.1717 07/27/2007 FRI 11:40 FAX 713 358 1717 Burleson Cooke LLY Juus/uu3 Exhibit"A" Taxpayers and Schedule Numbers Diamond Shamrock Stations,Inc. Schedule Numbers (PP): P0009071 095913300008; P0014846 096131416003; Valero Diamond Metro,Inc. Schedule Number(PP): P0012682 147106132016. -End- • • (00015108.l} CLERK TO THE BOARD te-(S .,1 PHONE (970) 356-4000 EXT 4226 FAX: (970) 352-0242 VVEBSITE: www.co.weld.co.us 915 10TH STREET ' P.O. BOX 758 C. GREELEY, COLORADO 80632 COLORADO July 25, 2007 DIAMOND SHAMROCK AD VALOREM TAX DEPT PO BOX 690110 SAN ANTONIO TX 78269-0110 Parcel No.: 095913300008 Account No.: P0009071 Dear Petitioner(s): The Weld County Board of Equalization has set a date of August 2, 2007, at or about the hour of 4:40 PM,to hold a hearing on your valuation for assessment. This hearing will be held at the Weld County Department of Planning Services, Conference Room, 918 10th Street, Greeley, Colorado. You have a right to attend this hearing and present evidence in support of your petition. The Weld County Assessor or his designee will be present. The Board will make its decision on the basis of the record made at the aforementioned hearing, as well as your petition, so it would be in your interest to have a representative present. If you plan to be represented by an agent or an attorney at your hearing, prior to the hearing you shall provide, in writing to the Clerk to the Board's Office, an authorization for the agent or attorney to represent you. If you do not choose to attend this hearing, a decision will still be made by the Board by the close of business on August 3, 2007, and mailed to you on or before August 10, 2007. Because of the volume of cases before the Board of Equalization, all cases shall be limited to 15 minutes. Also due to volume, cases cannot be rescheduled. It is imperative that you provide evidence to support your position. This may include evidence that similar homes in your area are valued less than yours or you are being assessed on improvements you do not have. Please note: The fact that your valuation has increased cannot be your sole basis of appeal. Without documented evidence as indicated above, the Board will have no choice but to deny your appeal. If you wish to obtain the data supporting the Assessor's valuation of your property, please submit a written request directly to the Assessor's Office by fax(970) 304-6433, or if you have questions, call (970) 353-3845. Upon receipt of your written request, the Assessor will notify you of the estimated cost of providing such information. Payment must be made prior to the Assessor providing such information,at which time the Assessor will make the data available within three(3) working days, subject to any confidentiality requirements. Please advise me if you decide not to keep your appointment as scheduled. If you need any additional information, please call me at your convenience. DIAMOND SHAMROCK- P0009071 Page 2 Very truly yours, BOARD OF EQUALIZATION Mk4 Donald D. Warden Clerk to the Board cc: Christopher Woodruff, Assessor CHRISTOPHER C. ROSAS BURLESON COOKE L.L.P 711 LOUISANA STREET, STE. 1701 HOUSTON TX 77002 Hello