Power Resources Cooperative v. Department of Revenue

In this direct appeal from a decision of the Tax Court, the issue is whether a part of the real and personal property that makes up the electric transmission system known as the “Pacific Northwest Intertie” (the Intertie) should be included in the assessed value of taxpayer’s property. Taxpayer is entitled to use the Intertie under a form of contract called a “Capacity Ownership Agreement.” The Department of Revenue (Department) ruled, and the Tax Court agreed, that taxpayer’s right to use the Intertie was subject to taxation. We agree with the Department and the Tax Court that, under the…