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ID H0030

Bill

Status

Passed

2/16/2017

Primary Sponsor

Revenue and Taxation Committee

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Origin

House of Representatives

2017 Regular Session

AI Summary

  • Amends Idaho Code Section 63-205B to modify how the state tax commission determines market value of operating property for rate-regulated electric utility companies
  • Specifies that a market discount rate must include a flotation cost component of 0.20% (twenty hundredths of one percent) supported by nationally recognized sources
  • Requires 80-100% weighting on the income approach in system value correlation, with no more than 20% weight on cost indicator using the historic cost less depreciation (HCLD) method
  • Clarifies that the 20% cost approach weighting accounts for all forms of depreciation and obsolescence, and appraisers cannot consider additional obsolescence
  • Becomes effective retroactively to January 1, 2017, and is declared an emergency measure

Legislative Description

Amends existing law to specify a market discount rate in determining the valuation of operating property of rate-regulated electric utility companies for assessment purposes.

ELECTRIC UTILITIES

Last Action

Reported Signed by Governor on February 16, 2017 Session Law Chapter 15 Effective: Retroactive to 01/01/2017

2/16/2017

Committee Referrals

Local Government and Taxation1/31/2017
Revenue and Taxation1/24/2017

Full Bill Text

No bill text available