42-14205. Adjustments to base value to reflect market value
To accurately assess ongoing business operations, income and property, the department shall adjust the base value used to determine the full cash value of pipeline property as necessary to reflect changed circumstances. The circumstances that require adjustments to the base value are as follows:
1. There is a final ruling by a court of competent jurisdiction in this state that the full cash value of a pipeline in this state using the method prescribed by section 42-14204 is more than the market value of the pipeline property using standard appraisal methods and techniques. In such cases, the final full cash value of the system plant in service determined by the court for the most recent tax year involved in any such tax appeal is the base value for the subsequent tax year, and the department shall adjust all valuations for future years pursuant to section 42-14204.
2. There is an agreement between a pipeline company and the department that is the result of a pending tax appeal, in which the parties enter into a binding stipulation, approved by a court of competent jurisdiction, to adjust the full cash value of the system plant in service as of a specific valuation date. In such cases, the department shall adjust the base value as set forth in the stipulation.
3. There is an agreement between a pipeline company and the department to correct an error in the calculation of the full cash value of the system plant in service for a pipeline that operates in this state. In such cases, the department shall adjust the base value as set forth in the agreement. Any agreement to adjust the base value to correct such an error shall be in writing and signed by the director and an officer of the pipeline company before the base value is adjusted.