Companies sue over tax valuations

Friday, May 28, 1999 | 11:55 a.m.

Howard Hughes Properties Ltd. and MCI WorldCom sued the state, claiming their properties are unfairly valued for tax purposes by the Clark County and Nevada assessors offices.

The lawsuits were filed separately Thursday in Clark County District Court.

Howard Hughes took issue with Clark County's assessed value of land at its Summerlin master planned community, while MCI WorldCom disputed the valuation of its statewide telecommunications network. Both companies are asking for a reduction in the assessed value and a refund of overpaid property taxes for the 1998-99 fiscal year.

The Clark County assessor used the aggregate value of each Summerlin property to reach its assessed tax valuation of about $300 million. Howard Hughes claims the fair method was to value the 14,700-acre property as one parcel.

MCI said the state's valuation of its property included intangible assets. It believes the proper valuation is the network's replacement value. MCI wants its assessment reduced by nearly $30 million, from $51.7 million to $22 million.

Both companies claim that other property holders have their properties valued by different methods that result in lower tax bills, a practice the companies refer to as "discriminatory." The Clark County and state assessor's offices say they were merely following state law in valuing the properties.