Wyo. Code R. 011-0006-8
Effective Date: 04/12/2002 to 06/02/2014
Rule Type: Superceded Rules & Regulations
Reference Number: 011.0006.8.04122002
Section 1. Authority. These Rules are promulgated under the authority of W.S. 39-11-102(b).
Section 2. Purpose of Rules. These rules are intended to describe the valuation methodology to be used to determine the taxable value of Car Companies for ad valorem tax purposes. The manuals, formulae, methods, systems, computations, standards, and criteria to be used by the Department of Revenue, (State Assessment Section) to determine fair value are set forth herein. Unless otherwise provided by law, these rules also prescribe the level of assessment to be applied to all property to determine assessed value.
Section 3. Duties of the Department of Revenue (State Assessment Section).
(a) The State Assessment Section is an operating section of the Ad Valorem Tax Division of the Department of Revenue. The Section is hereby delegated the authority to appraise and value all property specified in W.S. 39-13-102(m)(ii)-(viii) in accordance with the standards and methods established by these rules.
(b) Any valuation method used by the Department of Revenue, Ad Valorem Tax Division, State Assessment Section shall be in accordance with the rules adopted by the Wyoming Department of Revenue.
Section 4. Definitions. For the purpose of ad valorem taxation under these Rules, the definitions set forth in Title 39, as amended, are incorporated herein by reference. In addition, the following definitions shall apply:
(a) 'Best Information Appraisal' means the calculation of value based upon:
(i) Total Wyoming mileage, loaded and empty;
(ii) Class of car and;
(iii) Information provided by the railroad companies report required by W.S. 39-13-103(b)(xvi)(A);
(iv) Information provided by the car company.
(b) 'Calendar Year' means the year from January 1st through December 31st.
(c) 'Car Company' means all owners of railroad rolling stock (owned and leased) operating or present in the State during the preceding calendar year. This does not include those companies reporting as Wyoming railroad companies as defined by W.S. 39-13-102(m)(iv).
(d) 'Class of cars' means class f - flat, class g - gondola, class h - hopper, class l - special, class mw - maintenance of way, class n - caboose, class p - passenger, class r - refrigerators, class s - stock, class t - tank, and class x - box, as used by the Association of American Railroads, Operation and Maintenance Department, Mechanical Division in the classification of freight equipment cars.
(e) 'Department' means the Department of Revenue or its authorized agent.
(f) 'Railway Company' means the railroad companies operating within the State of Wyoming as specified in W.S. 39-13-103(b)(xvi)(A) and W.S. 39-13-102(m)(iv).
(g) 'State Assessments Appraiser' means those personnel employed by the Department of Revenue with specific job responsibilities for appraisal of properties specified in W.S. 39-13-102(m)(ii)-(viii).
(h) Mileage means both loaded and empty car miles.
(i) Cars idle mean cars stored, shopped, bad ordered and cars in queue time mode for loading and unloading.
(j) 'Time/speed study' means a detailed narrative and statistically significant sample of a company's Wyoming car movements, including cars idle, within a calendar month.
(a) Each state assessed car company as specified in W.S. 39-13-107(a)(ii)(A) shall submit an annual report to the Department of Revenue, State Assessment Section, on or before May 1 each year. The requested information shall include, but not be limited to complete ownership delineation; reporting marks; class of cars; the number of units per class of cars; the total Wyoming mileage and system mileage for the preceding calendar year as defined by this chapter; year(s) built or year(s) of acquisition; historical or original cost and additions and betterment made to cars; amount included in original cost associated with items included in the additions and betterment; daily average number of cars idle; and supplemental documents as required by the State Assessment Section.
(b) Each railway company as specified in W.S. 39-13-103(b)(xvi)(A) shall submit an annual report to the Department of Revenue, State Assessment Section, on or before May 1 each year. The requested information shall include, but not be limited to ownership/reporting marks; class of cars; the total Wyoming mileage and system mileage for the preceding calendar year as defined by this chapter; and information concerning routes and travel times which may be necessary to determine average daily mileage for the different classes of cars to complete the valuation process.
(c) Any request for extension of the filing deadline with the department shall be submitted in writing prior to the statutory due date. Extensions shall not be granted for greater than thirty (30) calendar days.
(d) Failure to file a reporting form, or an incomplete filing by a company shall require the state assessment section to value the company by the best information available requirements of W.S. 39-13-107(a)(iii), W.S. 39-13-103(b)(xvi)(C), and by the methods set forth in this chapter. The failure to report shall subject the company to the penalty provisions of W.S. 39-13-108(c)(ii)(B).
(a) The Department of Revenue, State Assessments Section shall annually determine the value of car companies based upon, but not be limited to:
(i) Setting a value upon each particular class of cars as defined by this chapter;
(ii) The value as determined by the Department of Revenue, State Assessment Section, shall be calculated by the use of market information available to the Department, class specific cost, sales and income information submitted by the taxpayer, data from surrounding state governments, and recognized value publications in the market which are generally available to the public; and
(iii) The numbers of cars upon which each company shall be valued shall be determined by the average number of cars necessary to make the Wyoming miles. The average number of cars necessary to make the Wyoming miles shall be determined by the company's annual Wyoming mileage divided by the product of the miles per day multiplied by the number of days in the year. The miles per day shall be determined by the company's Wyoming time/speed study. The time/speed study criteria shall be as developed by the department of revenue, state assessment section, to meet the requirements of W.S. 39-13-103(b)(xvi)(A). The state assessment section shall notify each company by October 15 of the year prior to the year the study is due on the month to be used for the time/speed study. Should the company not supply a time/speed study, the Department shall determine the number of cars by the best information available. The companies shall be required to file time/speed studies every three years, or as requested based upon system changes or other factors which may affect the reliability of the study.
(A) The number of total Wyoming cars multiplied by the full fair market value of the car shall determine the Wyoming fair market value;
(B) The Wyoming fair market value multiplied by the level of assessment as specified in W.S. 39-11-101(a)(xvii) shall determine the Wyoming assessed value;
(C) The Wyoming tax due shall be the total Wyoming assessed value multiplied by the statewide average mill levy as specified in W.S. 39-13-104(g).
(D) Wyoming fair market value multiplied by the level of assessment as specified in W.S. 39-11-101(a)(xvii) to determine the Wyoming assessed value;
(E) The Wyoming tax due shall be the total Wyoming assessed value multiplied by the statewide average mill levy as specified in W.S. 39-13-104(g).
Annually, on or before September 15th of each year, or as soon thereafter as possible, the Department of Revenue, State Assessment Section, shall calculate and mail to each taxpayer of record a statement of the final value and tax due to the
State of Wyoming. Written objections to the value or calculations may be filed pursuant to W.S. 39-13-102(n).
Section 8. Remittance of Taxes. All tax due shall be paid to the State of Wyoming, Department of Revenue, c/o Administrator Ad Valorem Tax Division, pursuant to W.S. 39-13-104(g).
Section 9. Assessed or Taxable Value. The taxable value for all state assessed property in the State of Wyoming as specified in W.S. 39-13-102(m)(ii)-(viii) shall mean eleven and one-half percent (11.5%) of fair market value.
Section 10. Valuation Basis Explanations to Taxpayer.
(a) Any taxpayer whose property is valued pursuant to W.S. 39-13-102(m)(v), W.S. 39-13-103(b)(xvi), and this Chapter will receive a preliminary notice of the taxable value of the subject property. The taxpayer, with the final assessment and tax bill, shall receive:
(i) A statement indicating the methods set forth in Section 6 of this Chapter used in arriving at the value; and, upon request,
(ii) The identification and values of all elements and data that were used, as well as any simplifying assumptions made or deviations from the method as set forth in these Rules. The information shall include identification of any industry-wide or other data not specific to the taxpayer's property and the utilization of such data.
(b) A preliminary notice will be issued and if there is an objection to the valuation, the taxpayer may request an informal conference to provide information as to any errors of fact or law or to explain or expand upon any of the information presented in the taxpayer's original filing for the company. If the objection is based on a clerical error, the taxpayer shall immediately notify the State Assessment Section, and a conference is not necessary.
(c) Requests for conferences must be made to the Administrator, Ad Valorem Tax Division, Department of Revenue within ten (10) calendar days of the postmark date of the preliminary notice. Notification of the date and time for such conference may be made by phone followed by written confirmation. Conferences shall be brief and to the point. All conferences shall be public meetings, except for discussion of items which may be proprietary or confidential.
Section 11. Annual Report Audit Rights and Responsibilities. The Department of Revenue, State Assessments Section, reserves the right to engage the Department of Audit to conduct ad valorem tax audits on state assessed car companies.