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State Board Settles Property Tax Dispute With AT&T

Posted on: Wednesday, 5 April 2006, 12:00 CDT

By Michael McNutt, The Daily Oklahoman

Apr. 5--Agreement frees $13.1 million for counties, schools

A state board agreed Tuesday to settle a property tax dispute with AT&T, freeing up about $13.1 million to most of the state's counties and school districts.

Members of the State Board of Equalization, made up of several elected officials statewide, voted unanimously to settle a 2004 property tax dispute with the telephone company.

The board took no action on settling a property tax dispute on the 2005 assessed valuation of AT&T, which then was known as SBC. The telephone company has filed a lawsuit with a special court that hears property tax disputes.

The Oklahoma Tax Commission appraised AT&T's buildings and equipment in the state for 2005 at $2.48 billion. Equalization board members Tuesday set a valuation of $2.34 billion. AT&T will continue to pursue its protest and legal action over the 2005 evaluation, a company spokesman said.

In 2004, the telephone company protested its assessed valuation of $1.93 billion, which would have generated about $42.7 million in property taxes, AT&T spokesman Andy Morgan said. The telephone company has taxable property or equipment in 74 of the state's 77 counties; it has nothing in the three counties that make up the Panhandle.

The telephone company in December 2004 paid $21.35 million, or half the amount due, Morgan said. That money was distributed to the eligible school districts and counties based on the company's holdings in each county.

The company paid the other half of the tax March 31, 2005, Morgan said. All of that went into an escrow account.

The equalization board approved a 2004 assessed valuation of $1.47 billion on the telephone company's property. That assessment will generate about $32.5 million in property taxes.

As a result of the settlement, AT&T will get $10.2 million back from the money being held in escrow. The remaining $13.1 million will be distributed to the counties and school districts.

The 2004 case was set to go to trial last week when a tentative settlement was reached.

"It was a good settlement that was recommended by all of our attorneys ... as a positive step for the taxpayers of Oklahoma and would strategically position us positively for the 2005 litigation that is still pending," said Gov. Brad Henry, chairman of the equalization board.

A main stumbling block in the 2005 case is whether certain types of property owned by AT&T are subject to ad valorem taxation, he said.

Morgan said AT&T is pleased the equalization board accepted the 2004 valuation amount that was agreed upon by the company and the Tax Commission. "This revised valuation more appropriately reflects our business today in Oklahoma," he said.

AT&T is puzzled by the Tax Commission's decision to move ahead with its 2005 valuation, which is still nearly $1 billion higher than the 2004 amount that was approved Tuesday, Morgan said. "We will definitely pursue our protest case regarding the 2005 valuation."

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Source: The Daily Oklahoman

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