HomeMy WebLinkAbout971122.tiffCOLORADO
TO: Carol Harding
FROM: Bruce T. Barker, Weld County Attorney
�l Em'/
DATE: May 22, 1997
TO
RE: Follow up to Request for Abatement for State Farm Mutual
Automobile Company
Attached is various correspondence regarding the October, 1996, request for an abatement of
taxes for computer personal property from State Farm Mutual Automobile Insurance Company.
The State of Colorado has approved the abatement in the amount of $32,650.87. Pursuant to
letter from Mary Huddleston to the Board of County Commissioners dated April 4, 1997, the
County is to deal with the petition for Schedule # P0022760, because that request for abatement
was less than $1,000. The State recommended that the petition be approved in part in the amount
of $239.24 and denied in part in the amount of $29.38.
Attached is a Memorandum received by Warren Lasell by Debbie Fangmeier on April 18, 1997.
It is my understanding that the Assessors Office has already granted the approval of the
abatement for Schedule #P0022760 in the amount of $239.47.
I intend this Memorandum to act only as a follow-up to the action of the Board in October, 1996.
There is no need for the Board to consider the matter further.
BTB/db:Memo/BOCC/Auto
Attachments
pc: Warren Lasell
eld County Attorney
f9S0D.37
971122
Roy Romer
Governor
Colorado Departm
DIVISION OF PR
Mary E. H
Property Tax
May 7. 1997
Mr. Art Willis, Weld County Treasurer
P.O. Box 458
Greeley, CO 80632
Dear Mr. Willis:
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P Y" 5%XATI O P I l �U
dmin ([s COUNTY
ATTORNEY'S OFFICE
This letter concerns our conversation on May 5, 1997, regarding
the 1996 abatement for State Farm Mutual Automobile Insurance.
The Division of Property Taxation determined the petitioner was
due an abatement of $29,919.83 on an assessed value of $333.009.
However, as we discussed, the Division erroneously used the 1995 mill
levy of 0.089847 instead of the correct 1996 mill levy of 0.098048. The
amended amount of taxes to be abated should be $32.650.87 ($333,009 x
0.098048). Please correct your records to reflect this change.
Thank you for your understanding in this matter. If you have any
questions concerning this issue, please contact me at (303)866-2134.
Sincerely.
Diane Champney
Property Tax Specialist
c: Warren Lasell, Assessor
Weld County Commissioners
Roy D'Souza, Agent
Randy Walter Agent
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April 18, 1997
Per my converstation with Warren on April 18, 1997 we both agreed to the suggestion on behalf
of the Division stating to grant the approval of State Farm P0022760 on $239.24 and deny in part
in the amount of $29.38. n 0,h ,0
See attached document from the Divis
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Roy Romer
Governor
Colorado Department of Local Affairs
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Mary E. Huddleston
Property Tax Administrator
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April 4. 1997
Mr. Dale Hall. Chairman
Weld County Commissioners
1400 N. 17th Avenue
Greeley. Colorado
Subject: State Farm Mutual Automobile Insurance Abatement Petitions
Dear Mr_ Hall:
On December 9, 1996, the Weld County Board of Commissioners
conditionally approved two abatement petitions for State Farm Mutual
Automobile Insurance - Schedule #130004901 in the amount of $30,626.51
and Schedule.#P0022760 in the amount:of $268.62: .The conditional
approval stated in -part
are granted upon the condition that the DPT agrees and
determines that the computer depreciation schedules used by State
Farm in figuring the amounts of its requests are correct and the
OPT computer depreciation tables originally used by the Weld
County Attorney's Office in calculating the tax assessments for
these schedule numbers are incorrect.
In investigating the petition request, we discovered that State
Farm had utilized pricing guides in calculating the market value of its
equipment, which would be utilization of the market approach. The
Divison's depreciation tables are provided to assessors to assist them
in valuing personal property by the cost approach to appraisal_ The
Division's depreciation tables only reflect depreciation due to ordinary
use of the equipment and some functional obsolescence. The tables do
not reflect depreciation due to extraordinary functional or economic
obsolescence. Functional obsolescence and economic obsolescence are
measured through the market or income approaches to appraisal. Further.
our Personal Property Manual (A,R,L. Volume 5) instructs assessors that
cost approach value estimates must be reconciled to the market and
income approaches. I must note here that statute dictates that an
assessor may only use the market or income approaches for personal
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1313 Sherman Street, Room 419, Denver, CO 80203, (303) 866-2371
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Mr. Dale Hall. Chairman
Weld County Commissioners
1400 N. 17th Avenue
Greeley. Colorado
property when the estimate of value result is lower than the cost
approach estimate of value. State Farm utilized the pricing guide to
calculate a market value, and the market value is lower than the value
estimate calculated under the cost approach. Therefore. State Farm is
not challenging our depreciation tables.
The Personal Property Manual also instructs the assessors that
since pricing guides generally do not include costs attributable to
installation, sales/use tax, and freight to the point of use, the
assessors must include these costs. We discussed this with State Farm's
agent. Randy Walter, and he agreed that the values he submitted should
be increased by ten percent (10%). Based on our investigation and the
agreement to increase the values calculated by State Farm to include
costs for installation, sales/use tax, and freight. we approved in -part
the petition for schedule #P0004901 in the amount of $29,919.83 and
denied in -part in the amount of $706.68.
Finally, the Division does not have jurisdiction over the petition
for Schedule #P0022760 because the abatement/refund amount is less than
$1,000. You may want to reconsider your conditional approval and
conduct another hearing on this petition to approve in -part in the
amount of S239.24 and deny in -part in the amount of $29.38.
If you have any questions regarding these petitions, please
contact Diane Champney at (303)866-2371.
Sincerely.
cNcyil\Atwagr34c
Mary E. Huddleston
Properly lax Administrator
CCU Bruce Barker. Weld County Attorney
Warren Iasell. Weld County Assessor
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