The unit method of valuation is preferred for valuing a railroad or public utility when the individual assets function collectively, are operated under one ownership and one management, are interdependent, and the property would be expected to trade in the marketplace as a unit. Under the unit method, the value of the tangible and intangible property is equal to the value of the going concern. The market value of the unit is referred to as the “system value.” For interstate property, allocation factors are used to determine what part of the system value is in Idaho. For more information, review Property Tax Rule 405 and Idaho Code section 63-405. Certain intangibles are exempt (see Idaho Code section 63-602L and Property Tax Rule 615) while other intangibles are taxable.
Appraisal of all operating property is done annually. Every person or company owning operating property in Idaho is required to file a report (operator’s statement) with the Tax Commission by April 30 of each year. This report may include asset listings, financial statements, reports to stockholders, and reports to regulatory agencies.
If an operating property owner disagrees with the appraised property value, the owner can meet with the appraiser to informally discuss the valuation and can also request a formal hearing before the Tax Commission. The owner must request a formal hearing before August 1. For more information on appeals, see Idaho Code sections 63-406 through 63-410 and Property Tax Rules 407 and 408.