425 S.W.3d 704
Ark.2012Background
- Charter challenges the Arkansas Public Service Commission Tax Division's ad valorem assessments (2006–2009) as to real and personal property, including intangible property.
- Charter contends intangible property (franchises, customer relationships, goodwill) was improperly included in the tax base and seeks exemption under 26-3-302.
- Commission relied on Order No. 13 (Comcast case) to justify including intangibles and argued Charter’s pre-2005 treatment was improper; presiding officer followed that order.
- Act 129 (1927) and Act 175 (1975) extended assessment to cable companies; section 26-26-1606(b) requires valuing tangible and intangible properties, including franchises and goodwill.
- Code changes (subchapter vs act) and codification issues are argued; court holds cable companies fall within the scope of 26-26-1606, and that 26-3-302 exempting intangible property does not apply to Charter.
- The court ultimately affirms the Commission’s decision and notes Charter abandoned related challenges to tangible property valuation; the request to strike judicial notice of Order No. 13 is denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether intangible personal property of cable-television companies is taxable | Charter: 26-26-1606(b) does not apply to cable companies | Commission: 26-26-1606(b) applies to all assessed entities including cable | Yes; intangible property is taxable under 26-26-1606(b) |
| Whether the 26-3-302 exemption applies to Charter’s intangibles | Charter: exemption applies to intangibles | Commission: exemption does not apply to properties under its assessment authority | No; intangibles are not exempt for cable companies under Ozark Gas framework |
| Whether the Tax Division violated rulemaking/notice by failing to adopt rules for intangible taxation | Charter: failure to adopt rules violated statute and notice requirements | Commission: issue not properly raised before Commission; not reviewable | Precluded from addressing on review; issue unresolved on appeal |
Key Cases Cited
- Ozark Gas Pipeline Corp. v. Arkansas Pub. Serv. Comm’n, 342 Ark. 591 (2000) (intangible property not exempt under preexisting framework; supports taxation of intangibles)
- St. Louis-San Francisco Ry. Co. v. Ark. Pub. Serv. Comm’n, 227 Ark. 1066 (1957) (burden on protestant to show manifest excess or error in assessment; review standard)
- Broussard v. St. Edward Mercy Health Sys., Inc., 2012 Ark. 14 (2012) (statutory interpretation de novo; look to intent and language)
- Henderson v. Dearing, 89 Ark. 598 (1909) (treatise on effect of amendments to acts; interpretive context)
- Ark. Pub. Util. Comm’n v. Santa Fe Natural Tobacco Co., 360 Ark. 32 (2004) (statutory interpretation and intent guidance)