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By Myrna Trauntvein Coal mines in Utah pay property taxes primarily based on a centrally assessed valuation determined by the Utah State Tax Commission’s Property Tax Division, which assesses the fair market value of the productive mining property. Those mining property owners can appeal the tax and that happened in the case of Canyon Fuel Company (Wolverine Fuel Company LLC--SUFCO) in Utah. Taxes are calculated using a capitalized net revenue method, considering the average net annual proceeds. Canyon Fuel Company (SUFCO) appealed the tax that they were assessed in 2022 and that affected both Sevier and Juab Counties. Sevier County approved the tax appeal for Canyon Fuel Company (SUFCO), said Zack Buck, Juab County Assessor. “We should do the same,” said Buck. “Ours is for a large portion.” “Sevier County and the Utah State Tax Commission settled,” said Perry Davis, Juab County Attorney. “If we want to file an appeal, we have 30 days to file.” Canyon Fuel Company (Wolverine Fuel Company LLC--SUFCO) has engaged in a state tax valuation appeal with the Utah State Tax Commission, specifically regarding state-assessed property values for the SUFCO mine. In 2022, the company appealed a $110.7 million assessment, requesting a reduction to $77 million, which triggered a county cross-appeal to support the original assessment. As a mining operation, SUFCO is typically state-assessed rather than locally assessed by the county, meaning appeals go directly to the Utah State Tax Commission. Following a valuation dispute, the commission holds hearings to determine the final fair market value. In August 2022, local officials approved a cross-appeal against the reduction in valuation requested by Wolverine Fuel Company LLC-SUFCO. Separate from tax, the company also manages the UPDES (Utah Pollutant Discharge Elimination System), a state-level program that controls discharge permits via the Utah Department of Environmental Quality. “For what we would get,” said Buck, “it is not worth fighting it. Usually, a bigger county appeals and we just follow along but that is not the case this time.” Melanie Cowan, county treasurer, said the county would need to hire a specialist attorney for the appeal. Buck said that the county could get perhaps something between $17,000 and $20,000, but an attorney handling that type of appeal as specialist would charge much more, in the neighborhood of $200 per hour, and any tax money potentially gained in an appeal would soon be used up and that was if any were to be received. “I don’t think it is worth it,” said Buck. Clinton Painter, commission chairman, said his instinct was always to fight for what was right but, in this case, it wouldn’t be worth the money. [According to Google, appeals attorneys typically charge between $200 and over $600 per hour, with rates heavily dependent on their experience, reputation, and the complexity of the case.] The SUFCO Mine is an underground coal mine, operated by Wolverine Fuels, producing 4.9 million short tons per annum, in Sevier County. The mine was previously owned by Arch Coal. In June 2013 Canyon Fuel Co. was sold by Arch Coal Inc. for $435 million to Bowie Resources, a mining firm from Kentucky. The sale consisted of the SUFCO Mine in Sevier County, the Dugout Canyon Mine in Carbon County, and the Skyline Complex on the Emery/Carbon county border. Bowie Resources changed its name to Wolverine Fuels in 2018. The massive underground operation has a permit area encompassing approximately 21,633 acres. It is one of the most productive, lingual mining operations in the Western United States, producing 3.5 to 7.6 million tons of high-BTU, low-sulfur coal annually, serving roughly half of Utah’s electricity needs. Palmer made the motion to not appeal the tax appeal from Canyon Fuel Company (SUFCO). Marvin Kenison, commissioner, made the second and all voted in favor. | ||