S.J.R. 10 Enrolled

RESOLUTION URGING REEVALUATION OF
CENTRALLY ASSESSED
TELECOMMUNICATIONS PROVIDERS
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Howard A. Stephenson
L. Steven Poulton
Mike Dmitrich
John P. Holmgren
Joseph L. Hull

A JOINT RESOLUTION OF THE LEGISLATURE URGING THE UTAH STATE TAX
COMMISSION TO CONSIDER ELIMINATING THE HIGHER VALUATION
METHOD APPLIED TO CENTRALLY ASSESSED TELECOMMUNICATIONS
PROPERTY IN FAVOR OF THE COST-LESS-DEPRECIATION METHOD; AND
REQUESTING A REPORT TO THE LEGISLATURE.
Be it resolved by the Legislature of the state of Utah:
WHEREAS state-of-the-art, high-capacity telecommunications infrastructure is vital to the
quality of life and to the economic well-being of Utah;
WHEREAS the telecommunications industry provides attractive employment in terms of
wage scales, a clean workplace, and technical training for the people of Utah;
WHEREAS the placement of high speed fiber optic networks and electronic switching
centers in Utah increases Utah's chances of attracting information-dependent enterprise to the state
and accelerates the practice of worker telecommuting;
WHEREAS Utah's tax policies discriminate between locally assessed telecommunications
providers and centrally assessed telecommunications providers;
WHEREAS Utah's unit valuation of centrally assessed telecommunications property is the
highest in the country;
WHEREAS centrally assessed telecommunications providers annually appeal the Utah
State Tax Commission's valuation of their property and have successfully sued the state for
excessive valuations; and
WHEREAS such excessive valuations may discourage the establishment of regional and

national telecommunications centers in Utah:
NOW, THEREFORE, BE IT RESOLVED that the Legislature of the state of Utah urge the
Utah State Tax Commission to study eliminating the current valuation method applied to centrally
assessed telecommunications property in favor of alternative methods, including the
cost-less-depreciation method used for locally assessed taxpayers.
BE IT FURTHER RESOLVED that the Legislature request the Utah State Tax Commission
to issue a report to the Legislature prior to December 1, 1997, evaluating the revenue consequences
of, and all other considerations with respect to, the alternative methods studied.
BE IT FURTHER RESOLVED that a copy of this resolution be sent to the Utah State Tax
Commission.

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