Current through Bulletin 2024-18, September 15, 2024
A.
Definitions.
1. "Average market value per
rail car" means the fleet rail car market value divided by the number of rail
cars in the fleet.
2. "Fleet rail
car market value" means the sum of:
a)
(1) the yearly acquisition costs of the
fleet's rail cars;
(2) multiplied
by the appropriate percent good factors contained in Class 10 of
R884-24P-33,
Personal Property Valuation Guides and Schedules; and
b) the sum of betterments by year.
(1) Except as provided in A.2.b)(2), the sum
of betterments by year shall be depreciated on a 14-year straight line
method.
(2) Notwithstanding the
provisions of A.2.b)(1), betterments shall have a residual value of two
percent.
3.
"In-service rail cars" means the number of rail cars in the fleet, adjusted for
out-of- service rail cars.
4.
a) "Out-of-service rail cars" means rail
cars:
(1) out-of-service for a period of more
than ten consecutive hours; or
(2)
in storage.
b) Rail cars
cease to be out-of-service once repaired or removed from storage.
c) Out-of-service rail cars do not include
rail cars idled for less than ten consecutive hours due to light repairs or
routine maintenance.
5.
"System car miles" means both loaded and empty miles accumulated in the U.S.,
Canada, and Mexico during the prior calendar year by all rail cars in the
fleet.
6. "Utah car miles" mean
both loaded and empty miles accumulated within Utah during the prior calendar
year by all rail cars in the fleet.
7. "Utah percent of system factor" means the
Utah car miles divided by the system car miles.
B. The provisions of this rule apply only to
private rail car companies.
C. To
receive an adjustment for out-of-service rail cars, the rail car company must
report the number of out-of-service days to the commission for each of the
company's rail car fleets.
D. The
out-of-service adjustment is calculated as follows.
1. Divide the out-of-service days by 365 to
obtain the out-of-service rail car equivalent.
2. Subtract the out-of-service rail car
equivalent calculated in D.1. from the number of rail cars in the
fleet.
E. The taxable
value for each rail car fleet apportioned to Utah, for which the Utah percent
of system factor is more than 50 percent, shall be determined by multiplying
the Utah percent of system factor by the fleet rail car market value.
F. The taxable value for each rail car
company apportioned to Utah, for which the Utah percent of system factor is
less than or equal to 50 percent, shall be determined in the following manner.
1. Calculate the number of fleet rail cars
allocated to Utah under the Utah percent of system factor. The steps for this
calculation are as follows.
a) Multiply the
Utah percent of system factor by the in-service rail cars in the
fleet.
b) Multiply the product
obtained in F.1.a) by 50 percent.
2. Calculate the number of fleet rail cars
allocated to Utah under the time speed factor. The steps for this calculation
are as follows.
a) Divide the fleet's Utah car
miles by the average rail car miles traveled in Utah per year. The Commission
has determined that the average rail car miles traveled in Utah per year shall
equal 200,000 miles.
b) Multiply
the quotient obtained in F.2.a) by the percent of in-service rail cars in the
fleet.
c) Multiply the product
obtained in F.2.b) by 50 percent.
3. Add the number of fleet rail cars
allocated to Utah under the Utah percent of system factor, calculated in
F.1.b), and the number of fleet rail cars allocated to Utah under the time
speed factor, calculated in F.2.c), and multiply that sum by the average market
value per rail car.
