American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1921-09-23
COUNTY OFFICIALS
|NF|GHT|NG MOOD
OVER SITUATION
UTILITY GETS REDUCED TAXES
AND INCREASED VALUATIONS
AT SAME TIME-STATE AND
COUNTY HELPLESS.
MEANS INCREASED LEVY
Property Holders WIN Be Required to
Make Up Difference of Over $1,000,
The Amount Topped off the Power
Company Quota.

lut AhlOuut hOppCu VII AhS AVNNA
Company Quota.
County officials are in a fighting
mood following the recent discovery
that the Idaho Power Company, thru
its activities before the state Board OF
Equalization and Public Utilities Com
mission, has jockeyed the county out
of $5,219 in actual tax money with
practically no recourse left on the
part of local taxing bodies. The loss
suffered from the hands of the Power
Company must be borne by other pro-
perty in the county which means an
increase in the levy of six tenths of a
mill for state and county, one mill for
the city of American Falls and a cor
responding amount for other Indepen-
dent taxing bodies.
Tax Decrease Planned.
The County Commissioners, the
county auditor and assessor and the
county Treasurer have worked lab
oriously and faithfully to reduce ex-
penses. The budget for 1921 has in
fact been reduced some $4,000 COM
pared to 1920.
The valuation of real property was
decreased $127,O00 in the county and
still the levy would have been no
larger than last year, that is IL mills
Now comes the Power Company with
a cleverly worked out plan that passes
the state board of equalization, the
Public Utilities Commission and the
State Legislature and effectually re
duces its taxes in the county approx
4. mately fifty percent. AT the same time
it files an inventory with the Public
Utilities Commission asking for {
hundred percent Increase in valuation
and revenue sufficient to guarantee
an investment OF an alleged $4,000,
900 compared to a valuation now plac
ed below $11,000,e00.
No Explanation.
1t is all explained in detail by at
torneys for the Power Company ant
the explanation leaves the county a
we'll as the state of Idaho helpless
The Power Company explains al
discrepancies by saying 1--WE don
lRow". 1t claims that 1t has neve
known what its valuation was an
consequently has been in error a
least seven years, this error approx
mating in many instances as much a
rs percent of the alleged present val
uation. Local taxing authorities ar
mystified to determine how such a con
poration could have operated so ell
ficiently ON calculations that were a
average of fifty percent in error. Th
Power Company itself is also myst
fled according to its attorneys.
Kiersted Explains. v.
A more or less lucid explanation
the decrease in valuation obtained h
the Power Company this year is COZ
tanned IN six page letter of stat'
ments and statistics submitted by
G. Kiersted, special agent for IL
Power Company. The letter in pa
follows:
go 80 Not until 1921 did we has
the knowledge of the facts and fiji
ures of the inventory set up now b
fore the Public Utilities CommissiC
of Idaho. The 1921 valuation of II
Company in Idaho is based upon Il
valuations described in this invei
tory.
The method of apportionment us'
I'm 1920 and years prior, lacking al
figures for appraisal, followed the on
logical method which was to set up Il
gross valuation testimated) of h
three elements, Power Stations
percent, transmission lines 30 pc
cent and distribution systems 20 p
cent.
Method of Estimating.
go = . 1t was found that the mo
equitable basis for estimating valu
of power plants was capacities
and by the simple process of calcul
tion the value Of the American Fa
plant was set up at s539,6S5 (seco
only 10 Swan Falls in value). -
The valuation of the transmissi
lines was divided by the entire traI
mission mileage reported in 1920
S26t miles and each county was a
portioned its due share in proporti
to mileage contained I'm each to Pow
County, being apportioned in is
424S miles (which included the mi
age of the Rockland Distribution Ii
valued at s40,Il4D. TO each cour
in which a power plant was locat
the valuation of that power plant "
credited to such county and dist
buted 10 the various taxing distri'
within it, in the proportion OF tral
mission line mileage contained in ca
taxing district
distribution Valuations Fixed.
us -" II was concluded that
fairest measure Of valuation to be &
en- each locality for distribution 8
TENS, would be upon the revenue eal
n. T.. rlo&4 L..