Union Pacific Railroad Company v. Board

These are appeals in consolidated cases from a declaratory judgment adverse to the State Tax Commission, holding that the Union Pacific Railroad Company and Burlington Northern, Inc., petitioners-respondents, have a right to appeal the Tax Commission's valuations of the railroads' operating properties to the Board of Tax Appeals. The Tax Commission asserts that the only avenue of appeal available to the railroads in this instance is through the district court, pursuant to the state administrative procedure act, that our statutes do not contemplate such an appeal to the Board of Tax Appeals and that our constitution and public policy considerations should preclude a review of Tax Commission decisions by the Board of Tax Appeals. The Union Pacific and Burlington Northern railroads own and operate interstate railroads, a part of which are located within Idaho. The Tax Commission valued the statewide operating properties of the railroads for the calendar year 1980 and notified Burlington Northern that the value of its property was $24,595,916, and notified Union Pacific that its property was valued at $231,347,080. The railroads sought and obtained informal conferences with the Commission's staff, seeking adjustments of those values, with no success. Thereafter formal hearings were held pursuant to I.C. § 63-710, and the Commission issued final decisions granting some but not all of the railroads' requested adjustments. Subsequently, the counties in which the operating properties of the railroads are located imposed their respective tax levies on the basis of the valuations set by the Tax Commission. The railroads paid those taxes under protest.