In the Matter of All Assessments, Review of Ad Valorum

This Court granted the applications for permission to appeal submitted on behalf of the Tennessee Board of Equalization and certain public utility companies. The purpose of our grant was to consider whether the Court of Appeals erred in determining that the Board of Equalization had exceeded its authority in granting a reduction in the assessed value of certain centrally-assessed public utility tangible personal property for tax year 1998. We hold that the Board of Equalization does have the legal authority, as part of the equalization process, to reduce the appraised value (and the assessed value) of centrally-assessed public utility property. Such a reduction is an appropriate remedy where the reduction causes the appraised value of such centrally-assessed personal property within each local tax jurisdiction to bear the same ratio to fair market value as obtains for the personal property within such local jurisdiction that is appraised and assessed by local taxing authorities. The judgment of the Court of Appeals is reversed, and this case is remanded to the Tennessee Board of Equalization for further proceedings consistent with this opinion.