According to its brief, the commission actually corrected PacifiCorp's taxes when it reduced the property value. The commission says its property tax division improperly valued the utility's property, but when a previously upheld tax method was used, PacifiCorp's property value actually dropped.

"The commission examined the 1997 assessment and determined that the Property Tax Division had relied on methodologies (indicators of value) that the commission had previously rejected," the brief states.

But counties are not buying it. David Scofield, attorney for the counties, put it in simple terms: The county assessor discovers a garage that was not included in the property value of a home. This should lead to an increase in taxes owed.

The Tax Commission is "saying that the garage was built near a freeway and depreciated the value of the property," Scofield said.

The real concern by counties, Scofield said, is that this action might set a dangerous precedent in how the Tax Commission values the property of large Utah corporations. The result, he said, could mean counties may have to spread the tax shortfall to small businesses and homeowners.

---

E-mail: gfattah@desnews.com