STATE TAX COMMISSION et al.
EAGLE-PICHER MINING & SMELTING CO
Judgment reversed and remanded with directions.
Fred O. Wilson, Atty. Gen., Perry M. Ling, Asst. Atty. Gen., for appellants.
Ben C. Hill, of Tucson, and Norman S. Hull, of Phoenix, for appellee.
Stanford, Justice. Udall, C. J., and Phelps, La Prade and De Concini, JJ., concur.
Appellee, The Eagle-Picher Mining and Smelting Co., owner of mining property in Pima County, Arizona, excepted to the evaluation of its property, as made by the Arizona State Tax Commission, for taxation purposes for the year 1946. Protest, filed with the Commission, was heard on August 5, 1946, by it, sitting as the State Board of Equalization.
The Board, on August 10th of that year, denied appellee's protest and request for reduction of the valuation fixed, and placed the value of appellee's property, including the mine, plant, railroad and other physical assets, at $ 493,500.00.
The appellee, under protest, paid the tax as fixed, and appealed from the assessment fixed by the Board, to the Superior Court of Pima County.
The following facts, taken from the appellants' brief, were uncontradicted by the appellee:
[71 Ariz. 291] "Both appellee and appellants submitted testimony of mining engineers as to the actual cash value of the mine based upon the formula approved in the United Verde Extension and Magma Copper Co. cases. From the evidence and briefs submitted by the respective parties, the court found the value of the mine and salvage value of the plant to total the sum of $ 216,265.00. In the opinion and order of the court an allowance of the sum of $ 74,271.00 for development work below the 340-foot level is made, whereas the total net value of the ore recovered below the 340-foot level as the result of this expenditure is fixed at only $ 10,000.00. * * * The lower court also found that the net profit on the ore mined and treated was $ 8.26 per ton.
"The mine, at the time the valuation for the year 1946 was made, was developed to the 340-foot level, and had been operated by the Eagle-Picher Mining Co. since 1943. No mining other than diamond drilling had been done below the 340-foot level, although the diamond ...