ÿWPC' ÝÃr‹Æ[æ/[Q¾†+s^ÔÑ¡Lúg+Þkmѳڕð-IÜbˆ·=è¢Õ wÿC¸Ai Ê Ðbé²¾çŒhï<Ô½õ ´8m›ÞÏt% éN©˜=GÜQýç ]{Ï£À²ì‚HÒ â8ÓüŠÔ ¸f Ç&çôÄø9ý>² õÏ$qJ±?© FøíIä¬åµ‚I{]æ"N³tØVú¯M^é4…ÝÕšÍ<­[›îO²Û“ßÄY¾³ø™ÖE jûm1ôEÊÃ@291íMžvßþe•‡Íï:¶Ò%ãN ³ù÷™×ºðâa¶ÐÿéY/Zˆ¤ÈG£Ï»Š¥EÙëÕ†+TŒ9üS»Á¿ã åà!†u,kÐR7ô1fî ˜6ö&ošÇGD’«Z4vðÈBuj“K wú(Á‚3‹y>=R;y˜ð…§Õ ÏÔª/iUç>ç£ÝKÊTî2í_Ì©Kê²ÏÎÇ…æ±Oƒ“ÇäShOS¿;ü-|5Ì¿E”ìæØ3n\Žrîç ‚Wg8é6)&¹pÎH7é Øá”+ÆÅË! šw¥¯ÞÂG™Ê.º‹ð`Pe¢9H{8žòüg'f6«C*# LUNW %¥ 0³«U <^w@š4Úî’ý 0 ÷ 0D† Ê ŠÒ õ\ ÿQ ?P;ÊUÎK#U:nnnnnnnnnn B¨ AQÅÆ 0DÜ 0 D  0Ddd D/¨¨ B× D3ô˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLhÎ(ÈhH  Z 6Times New Roman RegularX(‹7ÿ$¡¡Ò°ÒÒ„°ÒÓ  ÓÑ7€ü†XXdðXXdð7ÑÑ  ÑÔ€Xd|XXXÔ-šBu Z‹$Arrus BT Roman 7E89E:;U<î=Ó€>Ó€?Ó€I©yË&,3|xI ˆÝ ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú2Ú  ÚóóÝ  ÝÓÓ€€T.C.A.€ðð€67„5„903€is€not€applicable€to€public€utilities€since€public€utilityÐ ° Ðpersonal€property€is€valued€and€assessed€by€the€comptroller€of€the€treasury.€€T.C.A.Ïðððð€67„5„1301,€1303,€1314.(§(3GÙ$¤¤Ý ƒ7ÿ!ÝÒ°ÒÒ„°ÒÓ  ÓÑ7€ÌÏXXdðdð7ÑÑ  ÑÔ€X´wXXXÔÝ  Ýà ` àòòÚ  Ú0Ú  Úóó(3¯$££Ý ƒ!ÝÝ  Ý €Ý ƒ GÙ$ÝÒ°ÒÒ„°ÒÓ  ÓÔ€X´wXXXÔà ` àòòÚ  Ú1Ú  ÚóóÝ  Ý€€Real€property€is€divided€into€four€subclassifications€with€varying€assessmentÐ ° Ðpercentages.€€As€for€intangible€property,€the€legislature€is€given€the€authority€toÏestablish€classifications€and€assessment€percentages€for€such. ëÝ ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú3Ú  ÚóóÝ  ÝÓÓ€The€property€owner€is€required€to€annually€file€ð ðunder€oath,€schedules€andÐ ° Ðstatements€giving€[information€as€prescribed€in€statute]€concerning€all€propertiesÏowned€or€leased€by€such€owners.ðð€€T.C.A.€ðð€67„5„1303.€€The€comptroller€makes€theÏassessment€as€provided€in€T.C.A.€ðð€67„5„1302. õÝ ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú5Ú  ÚóóÝ  ÝÓÓ€€This€declaratory€proceeding€was€scheduled€to€be€held€May€3€„€7,€1999. 5Ý ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú6Ú  ÚóóÝ  ÝÓÓ€€Twenty„five€percent€of€the€1998€public€utility€personal€property€assessmentsÐ ° Ðare€attributable€to€federally€protected€utilities€which€received€a€15%€reduction€inÏtheir€personal€property€valuations€due€to€the€aforementioned€federal€courtÏsettlement.€€Thirty€percent€of€the€1998€total€public€utility€personal€propertyÏassessment€is€attributable€to€BellSouth€which€received€a€15%€reduction€in€itsÏpersonal€property€valuation€pursuant€to€the€aforementioned€agreement€with€theÏPetitioners.€€The€remaining€forty„five€percent€of€the€public€utility€personal€propertyÏassessment€was€equalized€using€the€15%€personal€property€reduction€in€valuation€forÏ1998€by€the€Board.€€On€October€27,€1998,€pursuant€to€T.C.A.€ðð€67„5„1329(a),€theÏBoard€certified€to€the€comptroller€the€valuation€fixed€upon€ad€valorem€propertyÏassessments€of€public€utility€property€in€Tennessee€for€the€1998€tax€year.€€ 1Ý ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú4Ú  ÚóóÝ  ÝÓÓ€These€statutes€require€that€rail€transportation€property,€and€air€carrierÐ ° Ðtransportation€property€be€assessed€the€same€as€other€commercial€and€industrialÏclassified€property.€€In€general,€these€federal€statutes€prohibit€any€discrimination€inÏthe€valuation€or€assessment€of€the€protected€utilities€in€comparison€to€locally€assessedÏcommercial€and€industrial€property. úÝ ƒ"¯"ÝÝ  ÝÔ€X¢1XXXÔÔ€=EXX¢1ÔÓ  Óò òÔ Ad ÔFILEDÔ€X¢1X=EÔÐ  ÐÌAugust€20,€1999ÌÌCecil€Crowson,€Jr.ÌAppellate€Court€ClerkÔdAhÔó ó KÝ ƒ $$ÝÒ°ÒÒ„°ÒÔ€XdgXXXÔÓ  ÓÓÓà ` àòòÚ  Ú7Ú  ÚóóÝ  ÝÓÓ€€T.C.A.€ðð€4„5„322€provides,€in€pertinent€part,€as€follows:Ð ° ÐÌà8 ` àà8¸ ` ü!` ü!àò ò4„5„322.€Judicial€review.€„„ó ó€(a)(1)€A€person€who€isÐ ° „ Ðaggrieved€by€a€final€decision€in€a€contested€case€is€entitledÏto€judicial€review€under€this€chapter,€which€shall€be€theÏonly€available€method€of€judicial€review.€.€.€.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àà h à*à À àà  à*à p àà È à*а¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!à(b)(1)€.€.€.€A€person€who€is€aggrieved€by€any€final€decisionÏof€the€Tennessee€regulatory€authority,€or€by€a€finalÏdecision€of€the€state€board€of€equalization€in€a€contestedÏcase€involving€centrally€assessed€utility€property€assessedÏin€accordance€with€title€67,€chapter€5,€part€13,€shall€fileÏany€petition€for€review€with€the€middle€division€of€theÏcourt€of€appeals.€ AÝ ƒ $$ÝÒ°ÒÒ„°ÒÔ‡Xd|XXXÔÓ  ÓÓÓà ` àòòÚ  Ú8Ú  ÚóóÝ  ÝÓÓ€€T.R.A.P.€12(I)€provides€the€procedure€to€be€followed€for€direct€review€ofÐ ° Ðadministrative€proceedings€by€the€Court€of€Appeals.,c½¬AZ‹"Arial Regular d!" $&Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý(#Ã$òòÚ  Ú0Ú  Úóó($$””ò òÚ  Ú1Ú  Úó ó(('÷ÿ dxdüÿP Pd'ÿÿdxdÝ ƒ7ÿ!ÝÒ°ÒÒ„°ÒÓ  ÓÑ7€ÌÏXXdðdÈ7ÑÑ  ÑÔ€X´wXXXÔÝ  ÝÑTR[¤ AØ'ÿ Legal3Ø' AØ'ÿ Legalÿ3Ø'TÑÑ7€ÌÏXXdðXXdð7ÑñIññ?ñßr€ )<,(j 8` `€€@Eô±` 8ttxP,°ð  rßñ?ññIññIññIñà@Ì Ì ®àIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÌà@¢¢(®àAT€NASHVILLEˆÌñIñßt€ )>.*jxéò‡` `€€@EÝ 7` 8ttxP °ð ‡ tßñIñà ` àà ¸ à€€€€______________________________________________ÌÌò òIN€THE€MATTER€OF:à h àà À àà  àà p àREVIEW€OF€òòAD€VALOREMóóÐ ° ÐALL€ASSESSMENTSà h àà À àà  àà p àASSESSMENTS€OF€PUBLICÐ ²  Ðà ` àà ¸ àà  àà h àà À àà  àà p àUTILITY€COMPANIES€FORÌà ` àà ¸ àà  àà h àà À àà  àà p àTAX€YEAR€1998ÌÌà ` àà ¸ àà  àà h àà À àà  àà p àC.A.€No.€01A01„9812„BC„00642Ìó ó____________________________________________________________________________Ð ¼  ÐÌà@k k ®àFROM€THE€STATE€BOARD€OF€EQUALIZATIONˆÌ____________________________________________________________________________ÌÌPaul€Krivacka,€James€L.€Murphy€III,à  àà p àT.€Arthur€Scott,€Jr;€Suzanne€S.€Cook,Ð ¼  ÐJames€L.€Charles€of€Nashvilleà À àà  àà p àHunter,€Smith€and€Davis€of€Kingsport,Ð ¼  Ðò òFor€Appellant,€Metropolitanà À àà  àà p àFor€Intervenors,€Appallachianñ7ñÐ ¼  Ðñ6ñà ` àà ¸ àà  àà h àà À àà  àà p àñ6ñPowerñ7ñÐ ¼  ÐGovernment€of€Nashville€andà À àà  àà p àñ9ññ8ñ{ñ8ññ9ññ:ñPower€ñ:ñCo.€and€Kingsport€Power€Co.Ð ¾ ÐDavidson€Countyó óÐ À Ðà ` àà ¸ àà  àà h àà À àà  àà p àRoland€M.€Lowell;€Bruce,€Weathers,ÌJeffrey€D.€Moseley;€Bueuger,€Moseley,à  àà p àCorley,€Dughman€&€Lyle€of€Nashville,Ð Â ÐCarson€&€Byrd€of€Franklinà À àà  àà p àò òFor€Intervenors,€Designated€Motoró óÐ Â Ðò òFor€Appellant,€Williamson€Countyà  àà p àCarriersÐ Ä Ðó óÌDonnie€E.€Wilson,€Robert€B.€Rolwingà  àà p àEverett€B.€Gibson;€Bateman€GibsonÐ Æ Ðof€Memphisà ¸ àà  àà h àà À àà  àà p à&€Childers€of€Memphis,€ò òForó óÐ Æ Ðò òFor€Appellant,€Shelby€Countyà À àà  àà p àIntervenors,€Colonial€Pipeline€andÐ È Ðó óà ` àà ¸ àà  àà h àà À àà  àà p àò òMCIó óÐ Ê  ÐJean€Dyer€Harrison€of€NashvilleÌò òFor€Appellants,€Shelby€and€Williamsonà p àó óC.€Dale€Allan,€Harry€S.€Mattice,€Jr.,ò òÐ Ì" ÐCountiesà ¸ àà  àà h àà À àà  àà p àó óThomas€Anthony€Swafford;€Miller,Ð Î# Ðà ` àà ¸ àà  àà h àà À àà  àà p àMartin€&€Trabue€of€Nashville,ÌPaul€G.€Summers,€Attorney€General€andà p àò òAmicus€Curiae,€Tennessee€Truckingó óÐ Ð% !! ÐReporter;€Jimmy€G.€Creecy,€à À àà  àà p àò òAssociationó óÐ Ò&""" ÐChief€Special€CounselÌò òFor€Appellee,€Tennessee€State€Boardà p àó óCharles€A.€Trost,€Michael€G.€Stewart;ò òÐ Ô($$$ Ðof€Equalizationà  àà h àà À àà  àà p àó óWaller€Lansden€Dortch€&€Davis€ofò òÐ Ö)&%% Ðà ` àà ¸ àà  àà h àà À àà  àà p àó óNashville,€ò òAmicus€Curiae,€Ð Ø*(&& Ðó óJames€W.€McBride,€Anne€M.€Stolee,€à  àà p àò òTennessee€Association€of€Businessó óÐ Ú+*'' ÐStephen€D.€Goodwin;€Baker,€Donelson,ÌBearman€&€Caldwell€of€Memphis€andÌWashingon,€D.C.,€ò òFor€Intervenors,Ð Ü.,** ÐCoalition€of€Certain€Utitlitiesó óÐ Þ/.++ ÐÌÌà@¦¦$®àò òòòREVERSED€AND€REMANDEDó óóóˆÐ à20.. Ðò òÌà ` àà ¸ àà  àà h àà À àà  àà p àà È àW.€FRANK€CRAWFORD,Ìà ` àà ¸ àà  àà h àà À àà  àà p àà È àPRESIDING€JUDGE,€W.S.ÌCONCUR:ÌÌALAN€E.€HIGHERS,€JUDGEÌÌHOLLY€KIRBY€LILLARD,€JUDGEó óñ;ñÐ î:>66 ÐÐ ð;@77ä Ðñ;ññ<ññ<ññ=ñÓÓñ=ññ<ñ›€à ` à€This€case€is€a€direct€appeal€of€administrative€proceedings€of€the€TennesseeÐ ° ÐState€Board€of€Equalization€(Board).€€Petitioners/Appellants,€MetropolitanÏGovernment€of€Nashville€and€Davidson€County,€Shelby€County,€and€WilliamsonÏCounty,€seek€review€of€the€Boardððs€grant€of€equalization€relief€to€centrally€assessedÏpublic€utility€taxpayers€by€reducing€their€tangible€personal€property€œvaluations€by›Ïfifteen€percent€for€the€1998€tax€year.Ìà ` àBefore€discussing€the€merits€of€this€appeal,€a€brief€overview€of€the€taxingÏprocedures€may€prove€helpful.€€The€authority€to€tax€property€is€established€by€ArticleÏII,€Section€28€of€the€Tennessee€Constitution.€€For€purposes€of€taxation,€Article€II,ÏSection€28€classifies€all€property€into€three€classes:€real€property,€tangible€personalÏproperty,€and€intangible€personal€property.׃ ×Ý ƒ##ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€As€pertinent€to€the€case€before€us,Ð ° ÐArticle€II,€Section€28€further€provides:Ìñ<ññ>ñÓÓñ>ññ<ñà8 ` àà8¸ ` ü!` ü!àà  àTangible€Personal€Property€shall€be€classified€intoÏthree€(3)€subclassifications€and€assessed€as€follows:Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(a)€Public€Utility€Property,€to€be€assessed€at€fifty„¼five€(55%)€percent€of€its€value;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(b)€Industrial€and€Commercial€Property,€to€beÏassessed€at€thirty€(30%)€percent€of€its€value;€andÐ ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(c)€All€other€Tangible€Personal€Property,€to€beÏassessed€at€five€(5%)€percent€of€its€œvalue.›€.€.€.Ð ¸ ¤¸ ¤ ÐÌà ` àà ¸ àà  àà h à*à À àà  à*à p àà È à*Ð °%!! ÐÌà8 ` àà8¸ ` ü!` ü!àà  àThe€ratio€of€assessment€to€value€of€property€inÏeach€class€or€subclass€shall€be€equal€and€uniformÏthroughout€the€State,€the€value€and€definition€of€propertyÏin€each€class€or€subclass€to€be€ascertained€in€such€mannerÏas€the€Legislature€shall€direct.€€Each€respective€taxingÏauthority€shall€apply€the€same€tax€rate€to€all€propertyÏwithin€its€jurisdiction.Ð ¸ ¤¸ ¤ Ѐ€€ÌÓÓà ` àThe€procedure€for€valuing€and€assessing€property€for€tax€purposes€is€providedÏin€T.C.A.€ðð€67„5„101€òòò òet€seq.€ó óóó(1998).€€Most€commercial,€industrial,€and€residentialÐ °1-- Ðproperty€is€valued€and€assessed€locally€by€county€assessors.€€T.C.A.€ðððð€67„5„102,€103.€Ð ´3// ÐAssessments€of€personal€property€are€made€annually€primarily€on€the€basis€ofÏinformation€supplied€by€the€property€owner€in€schedules€filed€with€the€assessor.€ÏT.C.A.€ðððð€67„5„902,€903.€€Under€T.C.A.€ðð€67„5„903(f),€fixed€rates€of€allowableÏdepreciation€costs€are€established€for€valuing€the€nine€categories€of€locally€assessedÏbusiness€and€industrial€personal€property.œ×ƒ ×Ý ƒ##ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  כР°  Ðà ` àWith€regard€to€public€utility€and€common€carrier€property,€the€property€isÏcentrally€assessed€annually€by€the€comptroller€of€the€treasury.€€T.C.A.€ðð€67„5„1301.׃×Ý ƒ##ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ׀Р°  ÐThe€comptroller€must€complete€the€assessments€and€send€notice€to€the€propertyÏowner€by€the€first€Monday€in€August.€€T.C.A.€ðð€67„5„1327(a).€€Thereafter,€theÏproperty€owner€or€any€taxing€authority€may€file€exceptions€to€the€assessment,€andÏthe€assessments€will€be€acted€upon€by€the€comptroller€within€the€time€prescribed.€ÏT.C.A.€ðð€67„5„1327(b).€€By€the€first€Monday€in€September,€the€comptroller€must€fileÏthe€assessments€with€the€State€Board€of€Equalization.€€The€comptroller€is€alsoÏrequired€to€notify€any€person€or€entity€that€filed€an€exception€of€the€action€taken€onÏthe€exception.€€Within€the€time€prescribed,€such€person€or€entity€may€file€furtherÏexceptions€with€the€Board.€€T.C.A.€ðð€67„5„1327(c).Ìà ` àThe€Board€then€reviews€the€assessments€as€authorized€and€directed€by€theÏprovisions€of€T.C.A.€ðð€67„5„1328.€€On€or€before€the€third€Monday€in€October,€theÏBoard€is€required€to€certify€to€the€comptroller€of€the€treasury€ð ðthe€valuation€fixed€byÏit€upon€each€property€assessed.ðð€€T.C.A.€ðð€67„5„1329.€€The€comptroller€is€thenÏrequired€to€certify€to€the€counties€and€municipalities€the€valuation€from€the€BoardÏwhich€is€the€amount€to€be€taxed€in€the€respective€taxing€jurisdictions.€€T.C.A.€ðð€67„5„¼1331.Ð °0,, Ðà ` àThe€seeds€for€the€present€dispute€were€sown€by€the€disposition€of€two€priorÏcontroversies.€€The€first€involved€a€lawsuit€in€federal€court€filed€by€various€railroadÏand€air€carriers€against€the€Board.€€Basically,€the€plaintiffs€contended€thatÏamendments€to€T.C.A.€ðð€67„5„903,€mandating€the€use€of€statutory€depreciable€lifeÏschedules€in€the€valuation€of€commercial€and€industrial€tangible€personal€propertyÏby€local€assessors,€resulted€in€an€arbitrary€and€substantial€reduction€in€the€assessmentÏvaluation€of€locally€assessed€commercial€and€industrial€personal€property.€€TheseÏsuits€alleged€violations€of€the€Railroad€Revitalization€and€Regulatory€Reform€Act€ofÏ1976,€49€U.S.C.€ðð€11501,€and€the€Airport€and€Airway€Improvement€Act€of€1982,€49ÏU.S.C.€ðð€40116(d),œ×ƒ×Ý ƒ##ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×›€in€that€the€plaintiffs€were€centrally€assessed€by€the€comptrollerÐ ° Ðat€100%€of€value€while€œlocally€assessed›€commercial€and€industrial€property€œwas›Ïassessed€at€less€than€100%€of€value€because€of€application€of€the€personal€propertyÏschedules€in€T.C.A.€ðð€67„5„903.€€This€allegedly€resulted€in€prohibited€discriminatoryÏproperty€taxation.Ìà ` àThese€parties€ultimately€reached€a€compromise€and€settlement.€€Under€theÏsettlement,€the€plaintiffs€were€given€a€15%€reduction€in€their€personal€property€taxÏœvaluations€for›€the€tax€years€at€issue€as€well€as€future€years€ð ðso€long€as€T.C.A.€ðð€67„5„¼903(f)€is€not€amended€or€superseded€by€legislative€action€or€unless€the€BoardÏdetermines,€after€an€appropriate€rule„making€or€declaratory€proceeding€allowingÏpublic€comment,€that€the€depreciation€schedules€reflect€fair€market€value.ððÌà ` àThe€second€controversy€involved€an€appeal€before€the€Board€by€BellSouthÏTelecommunications,€Inc.€(BellSouth),€in€a€proceeding€involving€Hamilton€CountyÏand€the€City€of€Chattanooga.€€Metropolitan€Government€of€Nashville€and€DavidsonÏCounty,€Williamson€County,€and€Shelby€County€intervened€in€that€appeal.€Ð °2.. ÐBellSouth€was€seeking€a€fifteen€percent€reduction€in€the€œvaluation€of›€its€personalÏproperty€for€the€1994„1997€tax€years€on€grounds€that€the€assessment€violated€theÏfederal€and€state€constitutions€and€provisions€of€state€statutes.€€On€September€30,Ï1997,€the€Board€reduced€1997€personal€property€œvaluations€of›€public€utilities€byÏfifteen€percent,€referring€to€its€previous€fifteen€percent€reduction€to€the€airlines€andÏrailroads€in€the€settlement€of€the€above„noted€lawsuits.€€The€intervenors€filedÏexceptions€to€this€action,€and€while€the€matter€was€pending€before€the€Board,€theÏintervenors€and€petitioners€joined€in€a€compromise€and€settlement€agreement€withÏBellSouth€in€which€BellSouth€would€dismiss€its€tax€appeals€for€the€1994,€1995,€andÏ1996€tax€years€but€would€be€granted€a€fifteen€percent€reduction€in€the€œvaluation€of›Ïits€personal€property€for€tax€years€1997€and€1998.€€The€comptroller€on€behalf€of€theÏBoard€joined€in€the€agreement€and€further€agreed€to€conduct€a€declaratoryÏproceeding€to€receive€evidence€on€whether€the€locally€assessed€commercial€andÏindustrial€personal€property€is€being€valued€at€full€market€value€by€virtue€of€the€useÏof€the€form€prescribed€in€T.C.A.€ðð€67„5„903(f).׃×Ý ƒ##ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€Ð °  Ðà ` àThe€controversy€resulting€in€this€appeal€had€its€inception€August€3,€1998,Ïwhen€the€comptroller€notified€all€public€utility€and€transportation€companies€inÏTennessee€of€their€1998€ad€valorem€tax€assessments€which€provided€for€a€fifteenÏpercent€reduction€in€value€as€given€to€BellSouth€in€the€previous€compromise€andÏsettlement.€€The€counties€and€municipalities€were€also€notified€of€the€assessments,Ïand€the€Petitioners€herein,€pursuant€to€T.C.A.€ðð€67„5„1327(b),€filed€exceptions€withÏthe€comptroller€to€all€centrally€assessed€property€assessments€except€the€BellSouthÏassessment.Ìà ` àOn€September€8,€1998,€pursuant€to€T.C.A.€ðð€67„5„1327(c),€the€comptrollerÏcertified€the€1998€ad€valorem€property€tax€assessments€of€public€utility€property€toÏthe€Board.€€The€Petitioners€again€filed€exceptions€contending€that€the€assessmentÐ °622 Ðfigures€for€centrally€assessed€public€utility€property€should€not€be€equalized€to€theÏlevel€of€locally€assessed€property€on€the€basis€that€the€locally€assessed€property€wasÏundervalued€and€that€the€comptroller€had€valued€public€utility€property€at€less€thanÏ100%€of€its€full€market€value.Ìà ` àOn€October€5,€1998,€the€Board€convened€to€consider€the€1998€ad€valoremÏassessments€of€public€utility€and€common€carriersðð€property€and€to€consider€anyÏexceptions€filed.€€By€order€dated€October€15,€1998,€the€Petitionersðð€exceptions€wereÏdenied,€and€the€Board€granted€a€15%€reduction€to€public€utilities€and€commonÏcarriers€in€their€personal€property€œvaluations€for›€the€1998€tax€year.œ×ƒ×Ý ƒ##ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×›€€The€orderÐ ° Ðprovides€in€pertinent€part:€€ÌÓÓà8 ` àà8¸ ` ü!` ü!àà  àWith€regard€to€equalization,€the€Board€finds€thatÏsettlements€of€past€claims€oblige€the€Board€to€grant€theÏ15%€personalty€equalization€adjustment€recognized€forÏtax€year€1997,€to€most€public€utility€taxpayers€for€1998.€ÏThe€remaining€minority€of€taxpayers,€not€directly€party€toÏthese€settlements,€should€be€extended€the€same€relief€forÏthe€equitable€considerations€we€cited€in€1997.€€ThisÏadjustment€is€mandated€under€the€settlements€so€long€asÏthere€are€no€legislative€amendments€to€the€local€businessÏpersonalty€depreciation€statute€(Tenn.€Code€Ann.€ðð€67„5„¼903),€or€judicial€or€administrative€findings€regarding€theÏstatute€that€are€inconsistent€with€the€rationale€of€theÏadjustment.€€Although€an€administrative€proceeding€isÏpending€which€will€consider€the€effects€of€ðð€67„5„903,Ïdisposition€is€not€near€enough€to€warrant€a€lengthy€delayÏin€certifying€the€1998€public€utility€assessments.Ð ¸ ¤¸ ¤ ÐÌÓÓà ` àPursuant€to€the€Tennessee€Uniform€Administrative€Procedures€Act,׃ ×Ý ƒ##ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×€and€inÐ °)%% Ðaccordance€with€T.R.A.P.€12(I),׃ ×Ý ƒ##ÃÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×€Petitioners,€Shelby€County€and€Williamson€County,Ð ° Ðand€Metropolitan€Government€of€Nashville€and€Davidson€County,€duly€filed€in€thisÏCourt,€Petitions€for€Review€of€the€Boardððs€October€15,€1998€order.Ìà ` àPetitioners€submit€the€following€issues€for€review:ÌÓÓà8 ` àà8¸ ` ü!` ü!à1.€€à  àWhether€the€Tennessee€State€Board€ofÐ °  ÐEqualizationððs€grant€of€a€fifteen€percent€reduction€in€theÏassessed€value€of€centrally„assessed€public€utility€tangibleÏpersonal€property€that€was€not€subject€to€a€settlementÏagreement€was€erroneous€and€in€excess€of€its€authority.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à2.à  àWhether€a€reduction€in€the€assessed€value€of€publicÐ ° Ðutility€tangible€personal€property€is€the€appropriateÏremedy€if€locally„assessed€property€is€undervalued.Ð ¸ ¤¸ ¤ ÐÌÓÓIn€addition€to€the€foregoing€issues,€Petitioners,€Shelby€County€and€WilliamsonÏCounty,€present€the€following€issue€for€review:ÌÓÓà8 ` àà8¸ ` ü!` ü!à3.à  àWhether€personal€property€values€achieved€byÐ ° Ðusing€the€depreciable€lives€in€Tenn.€Code€Ann.€ðð.€67„5„¼903(f)€comply€with€Article€II,€Section€28,€of€theÏTennessee€Constitution€and€the€Fourteenth€AmendmentÏof€the€United€States€Constitution.Ð ¸ ¤¸ ¤ ÐÌÑ7€¬¾XXdðXXdð7ÑÓÓà ` àWe€do€not€consider€issues€two€and€three€to€be€involved€in€this€appeal.€€TheÐ °  Ðorder€appealed€equalized€the€assessments€by€granting€a€fifteen€percent€reduction€toÏcentrally€assessed€utilities€because€that€relief€had€previously€been€granted€toÏBellSouth€in€a€compromise€and€settlement€agreement€to€which€the€Petitioners€wereÏparties.€Admittedly,€the€controversy€in€the€BellSouth€matter€involved€the€applicationÏand€legality€of€the€depreciation€schedules€authorized€for€locally€assessed€tangibleÏpersonal€property.€€However,€Petitioners€in€this€proceeding€presented€no€evidenceÐ °,(( Ðconcerning€the€filed€exceptions€and,€in€fact,€candidly€admit€that€they€have€chosenÏthis€same€forum€in€a€separate€proceeding€to€contest€the€application€andÏconstitutionality€of€T.C.A.€ðð€67„5„903(f).€€Under€the€circumstances,€we€perceive€thatÏunder€the€issue€presented,€we€must€determine€if€the€Boardððs€action€in€reducing€theÏvaluation€of€the€properties€of€the€centrally€assessed€public€utilities€was€within€itsÏauthority€as€established€by€the€state€constitution€and€statutes,€and€whether€there€isÏsubstantial€and€material€evidence€to€support€the€decision.Ì€à ` àT.C.A.€ðð€4„5„322(h)€sets€forth€the€standard€of€review€on€appeal€ofÐ ° Ðadministrative€proceedings€and€provides€as€follows:ÌÓÓà8 ` àà8¸ ` ü!` ü!àà  à(h)€The€court€may€affirm€the€decision€of€theÏagency€or€remand€the€case€for€further€proceedings.€€TheÏcourt€may€reverse€or€modify€the€decision€if€the€rights€ofÏthe€petitioner€have€been€prejudiced€because€theÏadministrative€findings,€inferences,€conclusions€orÏdecisions€are:Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(1)€In€violation€of€constitutional€or€statutoryÏprovisions;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(2)€In€excess€of€the€statutory€authority€of€theÏagency;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(3)€Made€upon€unlawful€procedure;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(4)€Arbitrary€or€capricious€or€characterized€byÏabuse€of€discretion€or€clearly€unwarranted€exercise€ofÏdiscretion;€or€Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(5)€Unsupported€by€evidence€which€is€bothÏsubstantial€and€material€in€the€light€of€the€entire€record.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àIn€determining€the€substantiality€of€evidence,€the€courtÏshall€take€into€account€whatever€in€the€record€fairlyÏdetracts€from€its€weight,€but€the€court€shall€not€substituteÏits€judgment€for€that€of€the€agency€as€to€the€weight€of€theÏevidence€on€questions€of€fact.Ð ¸ ¤¸ ¤ ЀÌÓÓAs€quoted€above,€in€reviewing€an€administrative€decision,€a€court€ð ðshall€notÏsubstitute€its€judgment€for€that€of€the€agency€as€to€the€weight€of€the€evidence€onÏquestions€of€fact.ðð€€T.C.A.€ðð€4„5„322(h)(5);€ò òòòHumana€of€Tennessee€v.€Tennessee€HealthÐ °0,, ÐFacilities€Commððnóóó ó,€551€S.W.2d€664€(Tenn.€1977).€€Factual€issues€are€reviewed€uponÐ ´2.. Ða€standard€of€substantial€and€material€evidence,€and€not€upon€a€broad,€òòò òde€novoó óóóÐ ¸400 Ðreview.€€òòò òSouthern€Ry.€Co.€v.€State€Bd.€of€Equalizationó óóó,€682€S.W.2d€196,€199€(Tenn.Ð ¼6 22 Ð1984)€(citing€òòò òCF€Indus.€v.€Tennessee€Pub.€Serv.€Commððnó óóó,€599€S.W.2d€536,€540Ð À844 Ð(Tenn.€1980)).€€Substantial€and€material€evidence€is€ð ðððsuch€relevant€evidence€as€aÏreasonable€mind€might€accept€to€support€a€rational€conclusion€and€such€as€to€furnishÏa€reasonably€sound€basis€for€the€action€under€consideration.ðððð€òòò òSweet€v.€State€Tech.Ð ° ÐInst.€at€Memphisó óóó,€617€S.W.2d€158,€161€(Tenn.€App.€1981)€(quoting€òòò òPace€v.Ð ´  ÐGarbage€Disposal€Dist.€of€Washington€Countyó óóó,€54€Tenn.€App.€263,€390€S.W.2d€461,Ð ¸  Ð463€(1965)).€€It€is€ð ðsomething€less€than€a€preponderance€of€the€evidence,€but€moreÏthan€a€scintilla€or€glimmer.ðð€€òòò òWayne€County€v.€Tennessee€Solid€Waste€DisposalÐ ¼  ÐControl€Bd.ó óóó,€756€S.W.2d€274,€280€(Tenn.€App.€1988).€€A€court€will€not€disturb€aÐ À Ðreasonable€decision€of€an€agency€with€expertise,€experience,€and€knowledge€in€theÏappropriate€field.€€òòò òSouthern€Ry.€Co.ó óóó,€682€S.W.2d€at€199.Ð Ä Ðà ` àWith€regard€to€their€first€issue,€the€Petitioners€argue€that€the€Boardððs€decisionÏto€grant€the€15%€reduction€at€issue€was€made€upon€unlawful€procedure€and€was€notÏsupported€by€substantial€and€material€evidence€because€the€Board€never€conductedÏa€fact„finding€hearing.€€Moreover,€the€Petitioners€assert€that€the€Board€acted€outsideÏthe€scope€of€its€constitutional€and€statutory€authority€in€granting€the€reduction.€€TheÏBoard,€however,€asserts€that€its€final€decision€and€order€of€October€15,€1998€wasÏcorrect,€in€accord€with€its€statutory€authority,€and€was€made€upon€lawful€procedure.ò òÐ È$  Ðó óà ` àThe€Petitioners€first€assert€that€the€Boardððs€action€without€conducting€aÐ È&"" Ðhearing€on€a€clearly€contested€case€was€made€upon€unlawful€procedure.€€They€assertÏthat€the€Board,€although€required€to€conduct€a€hearing,€denied€the€PetitionersððÏrequest€for€a€full€hearing€and€granted€the€subject€reduction.Ìà ` àThe€Board€asserts€that€the€case€was€scheduled€for€a€hearing€on€October€5,Ï1998,€and€the€Petitioners€were€given€the€opportunity€to€offer€proof€in€regard€to€theirÏexceptions€but€that€none€was€offered.Ìà ` àThe€record€reflects€that€the€notice€of€the€hearing€pursuant€to€T.C.A.€ðð€4„5„203Ïstated€in€pertinent€part€as€follows:€ð ðIf€you€have€filed€a€letter€of€exception€with€theÏBoard€challenging€valuation,€you€must€appear€at€this€hearing€and€present€evidenceÐ È844 Ðin€support€of€your€claim€unless€you€have€reached€an€agreement€with€the€CommissionÏstaff€regarding€the€assessment€or€how€evidence€on€your€behalf€will€be€presented.ððÌà ` àDuring€the€hearing,€the€Board€allowed€the€Petitioners€to€present€their€caseÏwith€regard€to€their€exceptions.€€After€being€called€before€the€Board,€the€PetitionersððÏattorney€responded€as€follows:ÌÓÓà8 ` àà8¸ ` ü!` ü!àMR.€KRIVACKA:€Members€of€the€Board,€my€name€isÏPaul€Krivacka.€€Iððm€an€attorney€with€Metro€Legal.€€As€farÏas€the€valuation€claims,€in€light€of€the€complexity€of€„„€ofÏevaluating€the€vast€amounts€of€data€available,€certainlyÏweððre€not€ready€to€proceed€today.€€That€was€never€ourÏunderstanding.€€It€was€our€understanding€today€would€beÏmore€or€less€a€calendar€call€to€refer€to€either€to€an€ALJ€orÏto€the€Assessment€Appeals€Commission.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àBut€in€light€of€that,€in€the€short€time€in€whichÏassessments€are€actually€made,€certainly,€weððre€notÏprepared€to€show€you€with€expert€testimony€what€theÏvalue€of€the€public€utilities€assessments€are.€.€.€.Ð ¸ ¤¸ ¤ ÐÌÓÓà ` àIt€appears€that€the€Board€gave€the€Petitioners€an€opportunity€to€be€heard,€andÏthe€Petitioners,€contrary€to€the€position€taken€by€Mr.€Krivacka,€were€notified€andÏshould€have€known€the€nature€and€extent€of€the€proceedings€on€October€5,€1998.€ÏPetitionersðð€assertions€in€this€regard€are€without€merit.ò òÐ °! Ðó óà ` àThe€Petitioners€also€assert€that€the€Boardððs€action€in€granting€the€15%Ð °# Ðreduction€was€outside€the€scope€of€its€statutory€authority.€€€The€Petitioners€argueÏthat€the€Boardððs€action€in€granting€the€15%€reduction€to€public€utility€taxpayers€inÏan€attempt€to€equalize€the€assessments€of€centrally€assessed€public€utility€tangibleÏpersonal€property€to€the€presumed€prevailing€level€of€value€for€locally€assessedÏcommercial€and€industrial€tangible€personal€property€violated€its€obligation€to€act€inÏaccordance€with€the€constitutional€and€statutory€mandate€that€all€property€be€valuedÏat€one€hundred€percent€of€its€fair€market€value.Ìà ` àOn€the€other€hand,€the€Board€asserts€that€it€is€empowered€to€ð ð[t]ake€whateverÏsteps€it€deems€are€necessary€to€effect€the€equalization€of€assessments,ðð€T.C.A.€ðð€67„5„¼1501(b)(3),€and€specifically€ð ð[e]qualization€may€be€made€by€the€board€.€.€.€byÏreducing€or€increasing€the€appraised€values€of€properties€within€any€taxingÐ °955 Ðjurisdiction,€.€.€.€in€such€manner€as€is€determined€by€the€state€board€of€equalizationÏwill€enable€the€board€.€.€.€to€justly€and€equitably€equalize€assessments€in€accordanceÏwith€law.ðð€€T.C.A.€ðð€67„5„1509(b).€€Ìà ` àThe€powers€and€duties€of€the€Board€as€stated€in€T.C.A.€ðð€4„3„5103€are€inÏpertinent€part€as€follows:ÌÓÓà8 ` àà8¸ ` ü!` ü!àò ò4„3„5103.€Powers€and€duties€of€board.€„„ó ó€The€stateÐ °  Ðboard€of€equalization€has€the€following€duties€andÏfunctions€to:Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àà h à*à À àà  à*à p àà È à*в ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(2)€Effect€the€assessment€of€all€property€in€theÏstate€in€accordance€with€the€Constitution€of€TennesseeÏand€all€statutory€provisions.€€The€state€board€shallÏexercise€powers€conferred€upon€it€by€law€to€the€end€thatÏassessments€in€every€taxing€jurisdiction€may€be€inÏaccordance€with€the€law;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àà h à*à À àà  à*à p àà È à*в¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(4)€Receive,€hear,€consider€and€act€uponÏcomplaints€and€appeals€made€to€the€board€regarding€theÏvaluation,€classification€and€assessment€of€property€in€theÏstate;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àà h à*à À àà  à*à p àà È à*в¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(6)€Review€assessments€made€by€the€comptroller€ofÏthe€treasury;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  àà h à*à À àà  à*à p àà È à*в ¸ ¤¸ ¤ ÐÌÓÓà ` àFurthermore,€T.C.A.€ðð€67„5„1501€provides€in€pertinent€part€as€follows:ÌÓÓà8 ` àà8¸ ` ü!` ü!àò ò67„5„1501.€Jurisdiction€and€duties€„„€Filing€ofÐ ²$  Ðappeals.€„„ó ó€(a)€The€state€board€of€equalization€hasÐ ´%!! Ðjurisdiction€over€the€valuation,€classification€andÏassessment€of€all€properties€in€the€state.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(b)€The€board€shall€have€and€perform€the€followingÏduties:Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(1)€Receive,€hear,€consider€and€act€uponÏcomplaints€and€appeals€made€to€the€board;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(2)€Hear€and€determine€complaints€and€appealsÏmade€to€the€board€concerning€exemption€of€property€fromÏtaxation;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(3)€Take€whatever€steps€it€deems€are€necessary€toÏeffect€the€equalization€of€assessments,€in€any€taxingÏjurisdiction€within€the€state€in€accordance€with€the€lawsÏof€the€state;Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(4)€Carry€out€such€other€duties€as€are€required€byÏlaw;€andÐ ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(5)€Provide€assistance€and€information€on€requestÏto€members€and€committees€of€the€general€assemblyÏrelative€to€the€taxation,€classification€and€evaluation€ofÏproperty.€à8h¸ ¤¸ ¤àà8ÀhLhLàж844ÀôÀô ÐÐ ¶955 ÐÓÓà ` àT.C.A.€ðð€67„5„1509€further€provides€in€pertinent€part:ÌÓÓà8 ` àà8¸ ` ü!` ü!àò ò67-5-1509.€Equalization€action€by€state€board.€„„ó ó€(a)Ð ° ÐUpon€its€consideration€of€reports€made€to€it,€togetherÏwith€the€evidence€submitted€therewith€or€otherÏinformation€available,€the€state€board€or€the€assessmentÏappeals€commission,€if€such€has€been€created€by€the€stateÏboard€under€ðð€67-5-1502,€shall€take€whatever€steps€itÏdeems€are€necessary€to€effect€the€assessment€of€propertyÏin€accordance€with€the€constitution€of€Tennessee€and€theÏlaws€of€this€state.€.€.€.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àà  à(b)€Equalization€may€be€made€by€the€board€orÏcommission,€as€the€case€may€be,€by€reducing€or€increasingÏthe€appraised€values€of€properties€within€any€taxingÏjurisdiction,€or€any€part€thereof,€in€such€manner€as€isÏdetermined€by€the€state€board€of€equalization€will€enableÏthe€board€or€commission€to€justly€and€equitably€equalizeÏassessments€in€accordance€with€law.Ð ¸ ¤¸ ¤ ÐÌÓÓà ` àIn€addition,€T.C.A.€ðð€67„5„1328(a)(1)€grants€the€Board€the€authority€ð ðtoÏincrease€or€diminish€the€valuation€placed€upon€any€property€valued€by€theÏcomptroller€of€the€treasury.ððÌà ` àPetitioners€acknowledge€that€the€Board€has€broad€powers€to€equalizeÏassessments€but€asserts€that€the€authorizing€statutes€are€consistent€in€providing€thatÏassessment€and€equalization€must€be€in€accordance€with€the€state€constitution€andÏstatutes.€€œò òòòSeeññ,ññ›€œe.g.ññ,ññ›€ó óóóT.C.A.€ðð€67„5„1501(b)(3),€ðð€œ67„5„1509(a)ññ„ññññ›€ññ(b),›€and€ðð€4„3„5103(2).€Ð ²# ÐThey€assert€that€Article€II,€Section€28€of€the€Constitution€of€Tennessee€requiresÏvaluation€of€taxable€property€at€one€hundred€percent€of€full€market€value€and€aÏfifteen€percent€reduction€in€value€violates€the€constitutional€mandate.€€Ìà ` àThe€legislature€is€authorized€to€establish€the€criteria€for€the€determination€ofÏvalue€of€taxable€property.€€Tenn.€Const.€art.€II,€ðð€28.€€Pursuant€to€this€authority,€theÏlegislature€has€pronounced€that:ÌÓÓà8 ` àà8¸ ` ü!` ü!à(a)€The€value€of€all€property€shall€be€ascertained€from€theÏevidence€of€its€sound,€intrinsic€and€immediate€value,€forÏpurposes€of€sale€between€a€willing€seller€and€a€willingÏbuyer€without€consideration€of€speculative€values,€andÏwhen€appropriate,€subject€to€the€provisions€of€theÏAgricultural,€Forest€and€Open€Space€Land€Act€of€1976,Ïcodified€in€part€10€of€this€chapter.Ð ¸ ¤¸ ¤ ÐÌT.C.A.€ðð€67„5„601(a).Ð ¶955 ЇÓÓà ` àThus,€we€are€squarely€faced€with€the€question€of€whether€the€Board€or€theÏBoardððs€action€in€the€instant€case€is€ð ðin€accordance€with€the€constitution€ofÏTennessee€and€the€laws€of€this€state.ðð€€T.C.A.€ðð€67„5„1509(a).€€Ìà ` àThe€Petitioners€assert€that€the€Boardððs€action€was€made€without€substantialÏand€material€evidence.€The€Petitioners€point€out€that€the€Board€based€the€grant€ofÏequalization€relief€on€a€prior€settlement€agreement€and€on€notions€of€equity.€€TheyÏargue€that€the€settlement€agreements€cannot€constitute€substantial€and€materialÏevidence€of€valuation€or€disparity€in€valuation€nor€does€equity€constitute€theÏsubstantial€and€material€evidence€necessary€to€warrant€the€grant€of€relief€to€allÏcentrally€assessed€public€utility€personal€property.€€Ìà ` àThe€Board€asserts€that€its€decision€to€grant€a€15%€reduction€in€value€asÏallowed€BellSouth€was€based€on€several€factors,€as€stated€in€its€brief:ÌÓÓà8 ` àà8¸ ` ü!` ü!à(1)€The€Board€had€granted€the€15%€reduction€for€allÏpublic€utility€personal€property€for€the€tax€year€1997Ïbased€upon€the€settlement€of€the€lawsuit€involving€theÏfederally€protected€utilities€(railroads,€airlines,€andÏcommon€carriers)€and€out€of€fairness€and€equity€to€theÏremaining€utilities.€€The€Boardððs€authority€for€thisÏdecision€is€set€forth€in€T.C.A.€ðððð€67„5„1509(b),€67„5„¼1328(a)(1).€€The€Petitioners€herein€agreed€to€the€1997Ïtax€year€reduction.Ð ¸ ¤¸ ¤ ÐÌà8 ` àà8¸ ` ü!` ü!à(2)€As€part€of€the€settlement€between€BellSouth€and€theÏPetitioners€involving€the€1997€and€1998€personalÏproperty€tax€years€the€State€Board€agreed€to€conduct€aÏdeclaratory€proceeding€to€receive€evidence€upon€whetherÏthe€15%€reduction€in€the€assessment€of€public€utilityÏpersonal€property€is€an€appropriate€reduction€in€theÏfuture€to€equalize€public€utility€companies€with€locallyÏassessed€commercial€and€industrial€personal€propertyÏvalued€under€T.C.A.€ðð€67„5„903.€€This€proceeding€isÏpresently€pending€for€hearing€before€an€administrative€lawÏjudge€in€May,€1999.€€The€Petitioners€are€full€and€activeÏparticipants€in€that€proceeding.€€The€issues€whichÏPetitioners€attempt€to€raise€in€this€petition€for€appeal€willÏbe€addressed€in€that€proceeding.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àÐ ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!à(3)€The€public€utilities€affected€by€the€Petitioners€in€thisÏcase€comprise€the€smaller€utilities€in€Tennessee€andÏamount€to€45%€of€the€total€public€utility€property€taxÏassessment.€€It€is€hypocritical€for€the€Petitioners€to€on€oneÏhand€agree€to€grant€BellSouth€the€15%€reduction€forÐ °955 Ð1998€[BellSouth€constitutes€30%€of€the€total€publicÏutility€personal€property€assessment€in€Tennessee]€but€onÏthe€other€hand€contend€that€the€Boardððs€action€violatesÏArticle€II,€Section€28€of€the€Tennessee€Constitution€andÏunfairly€increases€the€tax€burden€on€other€taxpayers.€ÏPetitioners€also€oddly€request€that€the€assessment€forÏthese€remaining€public€utility€taxpayers€be€delayed€untilÏthe€declaratory€proceeding€is€concluded.€€PetitionersððÏposition€in€the€case€before€the€Court€is€awkward€andÏdisingenuous€and€they€should€be€precluded€from€takingÏopposite€positions€in€the€same€proceeding.€.€.€.Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àÐ ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!à(4)€Under€T.C.A.€ðð€67„5„1329(a),€the€State€Board€isÏdirected€to€certify€to€the€Comptroller€the€valuation€fixedÏupon€public€utility€property€on€or€before€the€thirdÏMonday€in€October€of€the€tax€year€under€consideration.€ÏAs€a€practical€matter,€to€delay€the€certification€of€theÏ1998€public€utility€personal€property€assessments€untilÏthe€declaratory€proceeding€is€concluded€wouldÏsubstantially€delay€the€tax€assessments€and€work€aÏhardship€on€the€taxpayers€and€the€remaining€96€countiesÏthat€do€not€contest€the€Boardððs€decision.€€The€BoardÏacted€ð ðjustly€and€equitablyðð€in€not€delaying€the€1998Ïassessment.€€T.C.A.€ðð€67„5„1509(b).Ð ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!àÐ ¸ ¤¸ ¤ Ðà8 ` àà8¸ ` ü!` ü!à(5)€The€statutory€grounds€of€authority€granted€the€StateÏBoard€are€broad.€€The€Broad€is€authorized€by€the€StateÏLegislature€to€ð ðtake€whatever€steps€it€deems€are€necessaryÏto€effect€the€assessment€of€property,ðð€T.C.A.€ðððð€67„5„¼1501(b)(3),€67„5„1509(a).€€Equalization€may€be€made€byÏthe€Board€by€reducing€or€increasing€appraised€valuesÏwhich€in€the€judgment€of€the€Board€will€enable€it€toÏð ðjustly€and€equitably€equalize€assessments.ðð€€T.C.A.€ðð€67„¼5„1509(b).€€It€is€precisely€this€fairness€and€equitableÏstandard€that€the€Board€utilized€in€granting€the€15%Ïreduction€in€assessment€in€its€Order€of€October€15,€1998.Ð ¸ ¤¸ ¤ ÐÌÓÓÑ7€¬¾XXdðXXdð7Ñà ` àThe€Board€insists€that€there€is€substantial€and€material€evidence€to€warrant€theÐ °)%% Ðreduction€at€issue.€€Although€we€find€troubling€the€action€of€the€Petitioners€inÏagreeing€to€and€being€a€party€to€BellSouthððs€settlement,€we€have€difficulty€equatingÏPetitionersðð€action€as€material€and€substantial€evidence€on€the€value€of€the€publicÏutility€property.€€We€must€assume,€in€the€absence€of€any€evidence€in€the€record€toÏthe€contrary,€the€assessment€submitted€by€the€comptroller€before€applying€any€fifteenÏpercent€reduction€constituted€55%€of€the€fair€market€value€of€the€property.€€TheÏPetitioners€take€the€position€that€the€Board€had€no€authority€to€reduce€the€publicÏutility€assessments€unless€they€were€assessed€over€their€fair€market€value,€relyingÐ °955 Ðupon€ò òòòCarroll€v.€Alsupó óóó,€107€Tenn.€257,€64€S.W.€193€(1901).€€Ð ° Ðà ` àIn€ò òòòCarrolló óóó,€the€taxpayer€(Carroll)€filed€suit€to€recover€state€and€county€taxesÐ ´ Ðpaid€under€protest€on€the€ground€that€they€were€illegally€assessed€and€collectedÏbecause€the€property€was€assessed€at€ninety€percent€of€actual€cash€value€and€theÏother€properties€in€the€county€were€assessed€at€seventy„five€percent,€sixty€percent,Ïand€forty€percent€of€value,€and€for€another€reason€not€material€herein.€€The€CourtÏheld,€among€other€things,€that€in€order€for€Carrollððs€assessment€to€be€declared€illegal,Ïhe€must€show€that€his€property€appraisal€exceeded€the€actual€cash€value€of€theÏproperty.€€In€ò òòòSouthern€Ry.€Co.€v.€Clementó óóó,€57€Tenn.€App.€54,€415€S.W.2d€146Ð ¸ Ð(1966),€this€Court€noted€that€ò òòòCarrolló óóó€stands€for€the€proposition€that€it€is€the€policyÐ ¼  Ðand€object€of€the€law€in€cases€of€unequal€assessments,€ð ðnot€to€reduce€assessments€onÏproperty€unless€it€had€been€assessed€beyond€its€actual€value€but€instead€to€raise€upÏto€that€valuation€all€property€that€had€been€inadequately€assessed€and,€thus,€toÏequalize€taxation€on€all€property;€that€the€recourse€offered€to€the€taxpayers€was€notÏto€reduce€his€own€assessment€unless€it€was€beyond€its€actual€cash€value,€but€to€haveÏthat€of€his€neighbor€increased€until€both€reach€the€point€of€actual€cash€value€and,Ïthus,€become€equal€and€uniform.ðð€€ò òòòId.ó óóó€at€153.Ð À$  Ðà ` àIn€response€to€Petitionersðð€assertion,€the€Board€points€out€that€it€had€no€dutyÏto€raise€any€assessment,€but€to€the€contrary€could€lower€the€assessment€because€theÏcourts€have€recognized€the€authority€of€the€legislature€to€ascertain€and€direct€theÏdetermination€of€value€for€tax€purposes.€€We€have€no€quarrel€with€the€fact€that€theÏlegislature€is€given€the€authority€to€define€value€as€something€other€than€a€willingÏbuyer/willing€seller€fair€market€value€standard.€€ò òòòSee€Sherwood€Co.€v.€Claryó óóó,€734Ð Ä0,, ÐS.W.2d€318€(Tenn.€1987).€€But,€we€point€out€a€distinct€difference€in€that€situationÏthan€what€we€have€in€the€present€situation.€€As€stated,€the€legislature€has€theÏauthority€to€define€value,€and€we€know€of€no€authority€for€the€Board€to€take€suchÏaction.Ð È844 Ðà ` àIn€the€instant€case,€the€Board€concedes€that€it€had€reduced€the€value€of€theÏpublic€utility€property€to€fifteen€percent€below€the€fair€market€value.€€Admittedly,€theÏaction€of€the€Board€was€to€equalize€assessments€and€thus€equitably€treat€the€publicÏutility€taxpayer.€€However,€notwithstanding€this€commendable€approach€and€ourÏreluctance€to€interfere€with€basic€fairness,€we€have€no€alternative,€based€upon€theÏclear€mandate€of€the€constitution€and€statutes€of€this€State,€than€to€reverse€theÏBoardððs€order.€€We€simply€find€no€authorization€for€the€Board€to€reduce€theÏvaluation€of€taxable€property€below€the€fair€market€value€of€the€property€absentÏlegislative€authorization€to€do€so.€€We€have€found€no€legislative€authorization.€ÏHowever€commendable,€the€action€of€the€Board€in€furthering€the€purpose€of€fairnessÏand€equity,€we€cannot€find€legal€justification€for€the€action.Ìà ` àAccordingly,€the€order€of€the€Board€of€Equalization€allowing€a€fifteen€percentÏreduction€in€the€œññvaluationññññññ0ññññññññññsññññ€ññññviolation›€ññof›€the€œfortyññ€ññññ„ññfive›€percent€of€remaining€public€utilityÏproperty€is€reversed.€€The€case€is€remanded€to€the€Board€for€such€further€proceedingsÏas€may€be€necessary.€€This€decision€is€applicable€only€to€the€three€appealing€partiesÏherein.€€ò òòòSee€Pickett€v.€Goreó óóó,€58€S.W.€402€(Tenn.€Ch.€App.€1900).€€Costs€of€the€appealÐ °" Ðare€assessed€against€the€Board.ÌÓÓà ` àà ¸ àà  àà h àà À àà  àà p à_________________________________Ìà ` àà ¸ àà  àà h àà À àà  àà p àò òW.€FRANK€CRAWFORD,€Ð ´'## Ðà ` àà ¸ àà  àà h àà À àà  àà p àPRESIDING€JUDGE,€W.S.ó óÐ ¶($$ ÐÌò òCONCUR:Ð ¸*&& Ðó óÌò ò____________________________________Ð º, (( ÐALAN€E.€HIGHERS,€JUDGEó óÐ ¼- )) ÐÌò ò____________________________________Ð ¾/++ ÐHOLLY€KIRBY€LILLARD,€JUDGEó óœÔ†ÿÿÔÔ†ÿÿÔÔ  ÔÔ  Ôñ<ñ