HomeMy WebLinkAbout20012287.tiff 44'oe co Colorado Department of Local Affairs
to Executive Director, Bob Brooks
fi 4, R DIVISION OF PROPERTY TAXATION
* �► * Mar y E. Huddleston
1.18-/6 Property Tax Administrator
Bill Owens
Governor
TO: County Commissioners
FROM: Mary E. Huddleston QQ
Property Tax Administrator P-P•
SUBJECT: 2001 State Assessed Property
Explanation of Valuation Changes
DATE: August 3, 2001
MEMORANDUM
On August 1, 2001, we mailed you the final 2001 valuations for state assessed
companies. We are enclosing a listing of the reasons for changes or non-changes for
all of the companies protested. If you have questions, please feel free to call the
appropriate appraiser listed below.
Alan Hahne (303) 866-3107 Telephone Resellers
Paul Simon (303) 866-3198 Electric Companies, Pipeline Companies, Railroads,
and Telephone Companies
Richard Timberlake (303) 866-2682 Rural Electric Companies, Private Carlines,
and Water Companies
Mark Walker (303) 866-2824 Airlines, Mobile and Cellular Telephone Companies,
Rural Telephone Companies
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Q e_1c/�/ 1313 Sherman, Room 419, Denver, CO 80203, (303) 866-23__ 2001-2287
�� TDD (303) 866-5300 FAX (303) 866-4000
E-Mail mary.hudslleston@state.co.us
STATE ASSESSED PROPERTY SECTION
2001 PROTEST CHANGES AND COUNTY NOTIFICATION
AUGUST 1, 2001
POSSIBLE APPEALS - COUNTY PROTESTS - COMPANY PROTESTS
POSSIBLE DISTRICT COURT OR BOARD OF ASSESSMENT APPEALS -
Companies or representatives that protested and did not receive the changes they
asked for, or want to provide more data to support their position.
KN Gas Gathering is a Kinder Morgan company that has changed over the past year.
Kinder Morgan was extremely late in getting new data to the DPT (some arrived by fax
and e-mail on 8/1/01). Their value may change later in August.
Continental Airlines AL014
Delta Airlines AL016
DHL Airways AL674
Emery Air Freight AL793
Great Lakes Aviation AL913
Mesa Airlines AL663
Mesaba Aviation AL660
SkyWest Airlines AL561
United Airlines AL050
Durango Cellular (Alltel) TM815
Eagle Telecommunications aka CenturyTel of Eagle TR473
Universal Telephone Company aka CenturyTel of TR494
Colorado
Convergent Communications — In bankruptcy TX579
Global Crossing TL362
MCI Worldcom Network Services TL390
MCI Metro Access TL391
Public Service Company of Colorado EL064
COUNTY PROTESTS:
Arapahoe County:
Excel Communications TX844: The company did not complete the
apportionment section of the Annual Statement of Property (ASOP). When the
information was requested from the company, it failed to provide the necessary
information. Due to the lack of information, the entire value was apportioned to
Denver County.
Denver County:
Korean Air Lines, Air Canada, Ryan International Airlines, Holland Martinair
NV, Mexicana De Aviacion, And British Airways: Since 1997, we have
honored the International Civil Aviation Organization's Policies on Taxation in the
Field of International Air Transport. In international transport, there is reciprocal
exemption.
Douglas County:
AT & T TL369: The company initially reported the location of certain metro area
assets in Denver. These assets were actually in Douglas, Jefferson and Adams
Counties. This has been corrected. There was a sale of cellular towers between
AT&T and American Tower. Towers that were formerly in the AT&T state
assessed value will be locally assessed under the American Tower ownership.
Additionally, the value declined after further consideration to the splitting up of
the AT&T family of companies and the income potential of the long distance unit.
Cargill PC553: Colorado mileage declined from 2.2 million miles in 1999 to 1.3
million miles in 2000.
Chicago Freight Car Leasing PC132: The company was not valued in the first
notice of value. A value of$192,400 has now been placed on the company.
Covad TX133: The company was valued at net book value of $25,342,000. No
obsolescence was granted and the company requested none. The value is
probably high. We have requested additional fixed asset detail but none has
been submitted to us to date.
First Union Rail PC220: Colorado mileage declined from 4 million miles in 1999
to 1.3 million miles in 2000.
GTE Global Networks TX062: Merged into a new company named Genuity
Solutions.
Helm Financial PC550: Colorado mileage declined from 20 million miles in
1999 to 6 million miles in 2000.
ICG Telecommunications TL371: The company filed for Chapter 11
bankruptcy. The auditors finished the post-filing audit in June 2001. The
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company has presented and amended the ASOP reflecting the accounts after
the write-downs. The Financial Accounting Standards Board's Opinion 121
requires companies to write-down assets when events or circumstances indicate
that the carrying value may not be recoverable. Because of the severe downturn
in their business, ICG had to write-down assets in excess of$1 billion. The
company's financial statements show this condition as of 12/31/01. The new
assessed value reflects the company's assets after the write-down.
JAIX Leasing PC280: Colorado mileage declined from 3 million miles in 1999
on Burlington Northern to 600 thousand miles in 2000.
Newcourt Capital PC603: This company is now named Transport Capital fka
Newcourt Capital with the same PC number.
Nextel West TM611: Two issues regarding a building in Douglas County have
been resolved with Caryl Lee Roberts. 1) All of the building's personal property
is included in the state assessed value; 2) the value was allocated to Archuleta
County by Deloitte and Touche, which has been corrected.
Progress Rail Services PC600: - See below.
Sprint Communications TL379: The decline reflects a large decline in revenue
due to economic downturns affecting the entire telecommunications industry.
Swindell-Dressler PC265: This company is now named Savage Services fka
Swindell-Dressler with the same PC number.
Verizon Wireless TM455: Why the decline in value? We have to extract an
estimate of value associated with the FCC licenses because they are tax exempt
in Colorado. Recent resales of licenses and FCC auctions indicate a big
escalation in price/value. The two largest wireless companies (Verizon and
AT&T Wireless) had a larger decrease in value than the smaller companies.
XO Communications TL456: This is a new company in the high-risk fiber optic
cable business. They have been valued in line with other telecommunications
companies. The allocation was based on the reported gross investment in the
county.
El Paso County:
Nash Tex Leasing PC152: See Above
Resellers designated "TS": The ID letters TS have been changed to TX to
provide for uniformity in the Telephone Reseller industry.
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Moffat and Montrose Counties: -
Tri-State G & T ER093: Protest by Moffat and Montrose Counties presented by
Bob Wooldridge of Morgan County. The counties seek a five-year straight
average for income and a five-year straight average rate of return and a change
in reconciliation from a 50-50 percent cost-to-income to a 60-40 percent.
Because Tri-State merged with another generation and transmission company in
2000, no historical numbers were used in the valuation. Instead, an estimate of
the 2001 income based on expected income was capitalized. A rate of return
was calculated by dividing the expected income by the current plant in service.
A 50-50 percent weighting continued to be used for the cost-to-income
reconciliation.
Phillips County:
Haxton County Telephone TR478: Why the decrease? Haxton is one of the
two worst performing rural telephone companies. Operating property has
increased while the income has stayed about the same, lowering the rate of
return. We are capitalizing a stabilized income estimate well above what they
have earned in the last three years.
Great Plains Communications TR477: Why the decrease? The income has
declined in the last three years while operating property has increased, lowering
the rate of return. The most recent income is on the same level as earned in
1995 and 1996.
JJ Rail PC592: The company distributed all of the value to Logan, Phillips and
Sedgwick Counties.
Nebraska Kansas Colorado Railnet RR107: The value declined due to a
decline in income for 2000 and the addition of main line track outside of
Colorado. Railroad allocation is by track miles as per statute. The Colorado
miles did not change but the total miles in the system increased. Therefore
Colorado's share of the company value has lessened.
Nebraska Public Power PC222: The company had about a ten percent
increase in value from tax year 2000 due to the purchase of additional used
railroad cars.
Phillips County Telephone TM483: Why the decrease? The income in the last
4 years has see-sawed back and forth, almost in half, including the most recent
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year, and the highest income in the last 5 years dropped off the 5 year average
range.
Western Communications Paging TR566: Why no allocation? The company
treasurer checked their maps and information, and said that they had no
property in Phillips County in 2000 or 1999. The prior year's allocation, that went
away, was a mistake.
Washington County:
AT & T TL369: AT&T sold many rural towers to American Tower, a locally
assessed company. As a result several counties lost most or all of the AT&T •
state assessed value.
Casino Express Air AL773: Missing Casino Air allocation to Washington
County has been fixed.
Yuma County:
Century Tel Long Distance TX021: It is a reseller and does not have assets
within the county, only customers. The customer list can change dramatically
from year to year. CenturyTel has two other companies in Colorado. One is
known as Eagle Telecommunications or CenturyTel of Eagle, which does have
allocation in Yuma County.
Convergent Communications TX579: The company has filed for bankruptcy
and only has physical assets remaining in Arapahoe and Douglas Counties.
Last year, the value was apportioned based on the number of customers in each
county. Since it no longer has any customers, we apportioned value based on
the physical assets.
Excel Communications TX844: The company did not complete the
apportionment section of the ASOP. When the information was requested from
the company, it failed to provide the necessary information. Due to the lack of
information, the entire value was apportioned to Denver County.
The following car line assessments are to be eliminated as duplications:
Amoco Oil PC112: Value reduced to $0. The mileage is already included in BP
Amoco PC111.
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GTE Air Fone TX377: GTE Air Fone did not include depreciation figures on its
ASOP. They sent in a fixed asset list, which provided these numbers. The value
was adjusted to reflect the depreciated value rather than historical cost.
Hertz Technologies TX065: Corrected return resulted in lower value.
Interfold Internet TX615: Internet provider and should not be state assessed.
Intermountain Rural Electric ER077: Company requests the elimination of the
Contributions in Aid to Construction for both the cost approach and in the
calculation of the ROR. A change here results in a value of$46,119,900 and a
market to book ratio of 76.81%. This was denied. Second request is a full
deduction for materials and supplies and CWIP rather that at the market to book
ratio. This was denied.
LawyerNet TX617: Internet provider and should not be state assessed.
Morgan County REA ER081:— Colorado deductions were incorrectly totaled.
PacifiCorp EL066: The slight decline is due to the treatment of Contributions in
Aid to Construction and a FERC ordered one-year credit against assets for a
gain on the sale of assets.
Rhythms Links TX990: The company provided additional information when
requested and it also corrected some of the information it originally reported.
Due to the contraction in the telecommunications industry, an economic
adjustment was given to the company. The adjustment brought the net book
value more in line with current market value.
Shamrock Logistics Organization PF322: This is the merger of Diamond
Shamrock Pipeline and Shamrock Pipeline. The amended Annual Statement of
Property based on amended FERC Forms was received in July.
STS Hydropower EL061: Value declined because the new contract should drop
annual income by more than 50 percent for the next 5 years
Telemangement Systems TX348: Corrected return and new value from the
information provided.
Thermo Cogeneration Partners EL867: The July NOV was a BIA based on last
year's data. Adjustments were made in July based on fuel cost increases and
limitations on production because of pollution controls.
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