Justia Utah Supreme Court Opinion Summaries

The case involves Salt Lake County's challenge to the constitutionality of the Aircraft Valuation Law, which provides a preferred method for determining the fair market value of aircraft for tax purposes. The County argued that the application of the law to Delta Air Lines' aircraft resulted in an assessment below fair market value, violating the Utah Constitution. The County also contended that the law, on its face, violated the Utah Constitution by divesting the Utah State Tax Commission of its power to assess airline property.The Utah State Tax Commission had previously upheld the 2017 assessment of Delta's property, which was calculated according to the Aircraft Valuation Law. The Commission found that the County did not provide clear and convincing evidence that the legislature's preferred method of valuation did not reasonably reflect fair market value.The Supreme Court of the State of Utah rejected the County's arguments. The court held that the County failed to fully utilize the statutory safety valve, which allows the Commission to use an alternative valuation method if the preferred method does not reasonably reflect fair market value. The court also rejected the County's facial challenge to the Aircraft Valuation Law, concluding that the County did not show that the law prohibits the legislature from prescribing a preferred method for valuing aircraft. Therefore, the court affirmed the Commission's decision. View "Salt Lake Co v. Tax Commission" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the district court concluding that Pleasant Grover (City) had the power to enact a three-tiered "transportation utility fee" (TUF) but reversed the court's ruling that the TUF was actually a tax, holding that remand was required.The subject TUF charged local property owners a monthly fee corresponding to the "intensity" with which they used City roads, as determined by a study of user demand on the City's roadways, and the generated funds were to be used to repair and maintain city roadways only. At issue was whether the City had the authority to enact the TUF and whether the City properly characterized the TUF as a fee or if it was in fact a tax requiring the City to follow specific enactment procedures. The district court held that the TUF was actually a tax based on its purpose. The Supreme Court reversed in part, holding (1) the City acted within its discretion in enacting the TUF; but (2) the purpose of the TUF was characteristic of a fee because it was a specific charge for a specific purpose. View "Larson v. Pleasant Grove City" on Justia Law

The administrator of the Utah Motor Vehicle Enforcement Division denied Tesla Motors UT, Inc., a wholly owned subsidiary of a motor vehicle manufacturer, an application for a license to sell new motor vehicles, determining that the application implicated both the Motor Vehicle Business Regulation Act (Licensing Act) and the New Automobile Franchise Act (Franchise Act). The Tax Commission affirmed. The Supreme Court affirmed, holding that the Licensing Act and Franchise Act together prohibit a wholly owned subsidiary of a motor vehicle manufacturer from obtaining a license to sell the manufacturer’s new motor vehicles in stores in Utah, and the statutory scheme is constitutional. View "Tesla Motors UT, Inc. v. Utah Tax Commission" on Justia Law

In connection with the Utah Transit Authority's construction of a high-speed commuter rail line, the Utah Department of Transportation (UDOT) classified a certain railroad crossing as public. The Public Service Commission upheld the classification. Union Pacific Railroad sought review of the Commission's decision upholding UDOT's public classification. The Supreme Court affirmed, concluding that the Commission did not err in determining that UDOT correctly classified the crossing as public, as Union Pacific failed to present enough evidence to support its arguments that the crossing was formally vacated or abandoned or that the crossing was a new road that never became public. View "Union Pac. R.R. v. Utah Dep't of Transp." on Justia Law