Thursday, April 9, 1998 | 12:43 p.m.
Despite testimony that property values aren't uniformly assessed across Nevada, board members voted unanimously Wednesday to reject AT&T's request for a $682,000 property tax reduction.
"There is absolutely no question the property was properly assessed," board member Reese Perkins said.
Perkins said the board would commit another wrong if it lowered AT&T's taxes just because counties aren't properly assessing values of other telecommunication companies.
AT&T lawyer Rick Smith charged that a requirement in the Nevada Constitution that taxes be equal and uniform had been violated in the case of his company.
The state Department of Taxation places taxable values on telecommunications companies and utilities that cross county lines. County assessors put values on companies that operate solely within county boundaries.
Although the state placed an "intangible value" on AT&T's worth, Smith said county assessors don't consider this factor when they put values on companies within their boundaries.
"You have to remove the intangible value that is not assessed on other taxpayers," he said. "This is an unequal situation that needs to be remedied."
Smith said the tax is particularly onerous in this era of a competitive telecommunications industry. He said 90 telecommunications companies in Nevada are trying to take AT&T's customers.
Three county assessors, including Clark County Assessor Mark Schofield, backed up Smith's contention that they don't use intangible values.
Schofield said the Department of Taxation has given county assessors no guidance in figuring such values, so the value isn't calculated.
Intangible values include such factors as the worth of a company's trademark, customer base, good will, patents, copyrights and other items that can't easily be given a dollar value.
Because the law requires the consideration of intangible values, board member William Wright said AT&T had no real argument.
"I don't think this board should be asked to validate the failure of county assessors to follow the statute," he said.
Taxation Director Michael Pitlock said a legislative study is being done on the different assessment practices, and new regulations on intangible values are being drawn up by his department.
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