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ID H0030
Bill
Status
Passed
2/16/2017
Primary Sponsor
Revenue and Taxation Committee
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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