West Virginia Code of State Rules › Agency 110 - Tax › Title 110 - LEGISLATIVE RULE STATE TAX DEPARTMENT › Series 110-01M - Valuation Of Public Utility Property For Ad Valorem Property Tax Purposes › Section 110-1M-2 - Definition

Current through Register Vol. XLI, No. 28, July 12, 2024
As used in this rule and unless the context clearly requires
				  a different meaning, the following terms have the meaning ascribed in this
				  section.
2.1. "Bands of investment
				technique" means a synthesis of capital components used in financing an
				investment.
2.2. "Capitalization
				rate" means a rate, used to convert an estimate of income to an estimate of
				market value.
2.3. "Interstate
				commercial motor vehicle" means a qualified motor vehicle registered under a
				proportional registration agreement, or a qualified motor vehicle that, except
				for the fact that it is engaged only in intrastate commerce, would otherwise be
				subject to registration under proportional registration agreements. "Commercial
				motor vehicle" status may, at the option of the party registering the vehicle,
				be conferred upon a non-qualified motor vehicle such as a vehicle, or a
				combination thereof, that have a gross vehicle weight of 26,000 pounds or less,
				that have only two axles, or are used in the transportation of charter
				parties.
2.4. "Cost approach" means
				the appraisal process in which cost of the property being valued is considered
				in determining an estimate of fair market value. As a general rule, original
				cost shall be used to value public utility operating property; however, when
				such original cost is not available, replacement cost or reproduction cost may
				be considered.
2.5. "Economic
				obsolescence" means a loss in value of a property arising from factors such as
				changes in use, legislation that restricts or impairs property rights, or
				changes in supply and demand relationships.
2.6. "Fair market value" means the highest
				price in terms of money that a property will bring in a competitive and open
				market, assuming that the buyer and seller are acting prudently and
				knowledgeably, allowing sufficient time for the sale and assuming that the
				price is not affected by undue stimulations.
2.7. "Final assessed values" means values
				established by the Board of Public Works required by W. Va. Code '11-6-11.
2.8. "Functional obsolescence" means a loss
				in value of a property due to changes in style, taste, or technology.
2.9. "Gross capital cost" means the actual
				cost of the new or used vehicle at the time of purchase, as illustrated on the
				bill of sale, purchase contract, or similar document showing the purchase price
				of the vehicle. The cost at the time of purchase means 100% of the cost as
				shown on the books and records of the purchaser and includes freight,
				installation charges, trade-ins, federal tax allowances and any applicable
				credits utilized by the purchaser at the time of purchase.
2.10. "Income approach" means the appraisal
				process of discounting an estimate of future benefits into an expression of
				present worth.
2.11. "Market data
				approach" means the appraisal process of examining sales data and translating
				the data into an estimate of present worth.
2.12. "Operating property" means utility
				operating property used for purposes immediately connected with providing the
				respective utility service. The Tax Commissioner construes "purposes
				immediately connected with providing utility service" to be synonymous with
				properties considered by regulatory bodies in constructing the utility rate
				base for rate making purposes. The Tax Commissioner shall therefore give
				primary consideration to whether property is included in utility operating
				property classification as reflected in the applicable uniform system of
				accounts when deciding operating non-operating property issues.
2.13. "Original cost" means the initial cost
				paid for constructing or acquiring property.
2.14. "Physical deterioration" means a loss
				in value due to wear and tear in service.
2.15. "Proportional registration agreement"
				means an agreement entered into by the West Virginia Commissioner of Motor
				Vehicles under the authority of W. Va. Code '17A-2-10a.
2.16. "Public service corporation" means
				business entities contemplated by the provisions of W. Va. Code '11-6-1
				et seq.
2.17. "Qualified motor
				vehicle" means a motor vehicle used, designed or maintained for the
				transportation of persons and property and:
2.17.1. Which is a self-propelled unit having
				a gross vehicle weight in excess of 26,000 pounds;
2.17.2. Is a self-propelled unit having three
				or more axles, regardless of weight;
2.17.3. Is used in combination with another
				vehicle, when the combined gross vehicle weight exceeds 26,000 pounds;
				or
2.17.4. The combined gross
				vehicle weight or combined registered gross vehicle weight of the two or more
				vehicles exceeds 26,000 pounds.