Alliant Techsystems, Inc. v. Salt Lake County Board of Equalization
270 P.3d 441
| Utah | 2012Background
- ATK uses NIROP, a Navy-owned property, under a facilities use agreement.
- NIROP consists of six parcels totaling about 528 acres with 181 improvements.
- Utah Privilege Tax Statute taxes the possession or use of exempt property used in a for-profit business.
- Exemption requires exclusive possession; ATK argued Navy control defeats exclusivity.
- District court granted summary judgment finding ATK had exclusive possession despite Navy control.
- This Court must determine the correct meaning of exclusive possession and whether genuine facts preclude summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What does exclusive possession mean in the Exemption? | ATK contends exclusive possession is limited to third-party exclusion. | Board/County argues exclusive possession is exclusive against third parties only. | Exclusive possession means exclusive as to all parties, including the owner. |
| Are there genuine issues of material fact about ATK's control of NIROP? | ATK asserts Navy retains control; record shows disputed control facts. | Board argues ATK controls access under a rent-free, noninterference framework. | Yes, genuine issues exist; summary judgment inappropriate. |
| Does ATK have standing to raise a Supremacy Clause challenge? | ATK claims tax on full value of government property violates Supremacy Clause. | Court should not reach standing; exclusive possession forecloses argument. | Court declines to decide standing because exclusive possession forecloses the challenge. |
Key Cases Cited
- Osguthorpe v. Wolf Mountain Resorts, L.C., 2010 UT 29 (Utah Supreme Court (2010)) (defines exclusive possession as rights to exclude and to use)
- Keller v. Southwood N. Med. Pavilion, Inc., 959 P.2d 102 (Utah 1998) (lease must convey definite space and exclusive possession)
- ABCO Enters. v. Utah State Tax Comm'n, 211 P.3d 382 (Utah 2009) (terminology and interpretation guiding tax statutes)
- United States v. New Mexico, 455 U.S. 720 (U.S. Supreme Court (1982)) (use tax limits on government property under Supremacy Clause)