Opinion ID: 1914245
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: Railroads, such as Burlington Northern, are centrally assessed by Department under the provisions of SDCL ch. 10-28. Under that chapter, the Secretary of Revenue (Secretary) assesses all of the property actually and necessarily used in the operation of the railway as a single unit. SDCL 10-28-1. On or before May 1, each railroad is required to file an annual statement, the contents of which are prescribed by statute, to assist Secretary in assessing the railroad's property. SDCL 10-28-3. Each railroad then receives written notice from Department of the unit value assessed for that year. SDCL 10-28-15. A railroad which disagrees with the assessment may appeal the assessment to the State Board of Equalization (Board). SDCL 10-38-2. This right to appeal the assessment is no different than the right to appeal granted to any other taxpayer in the state at the local level. Regardless of whether an appeal is taken, Board equalizes the assessed values and allocates them to the counties in which the railroad operates. SDCL 10-6-34.1, 10-28-15. Department then notifies the railroad, county auditor, and municipal finance officers of the allocation. SDCL 10-28-15, -16, and -17. This notification is in the form of a Certificate of Assessment of Equalization and Levy (Certificate). Burlington Northern received, but did not appeal, its 1991 assessment from Department. However, on September 26, 1991, Fall River County (County) took issue with the valuation of Burlington Northern's railroad property located within its boundaries and filed a notice of appeal from the Certificate for 1991. The appeal asserted that Board undervalued certain centrally assessed utility property in Fall River County. The record of the Board was certified to the Seventh Circuit and the Seventh Circuit granted intervention to Edgemont School District # 23-1 (District), and Black Hills Power and Light Company (BHP & L). On February 11, 1992, BHP & L filed a motion to dismiss questioning the Seventh Circuit's jurisdiction. Prior to the Seventh Circuit hearing the motion to dismiss, BHP & L settled with County and District. On March 26, 1992, Board also filed a motion to dismiss alleging no jurisdiction. The Seventh Circuit denied the motion on April 1, 1992. [1] The Seventh Circuit settled the litigation between the remaining parties. Burlington Northern was neither a party to, nor took any part in, the litigation. The Seventh Circuit entered its findings of fact and conclusions of law whereby the valuation of Burlington Northern's centrally assessed property in Fall River County increased from $3,307,692.00 to $35,459,734.00. Burlington Northern then sought a writ of certiorari from this court vacating the judgment of the Seventh Circuit for lack of jurisdiction.