Mining leader faces significant overvaluation in Utah
Result: $49.4M reduction in assessed value and $474K in tax savings following a successful valuation appeal.
This nationally recognized construction and materials company operates across the US as a leader in infrastructure development. At the core of its Western US operations is a network of aggregate mining facilities that produce sand, gravel, and other raw materials critical to large-scale public and private construction projects.
The Utah operation, subject to central assessment by the Utah State Tax Commission, was nearing the end of its economic life due to resource depletion. Despite this, the mine had been overvalued as though it had a perpetual revenue stream—a valuation approach that significantly overstated the asset’s taxable value and distorted the company’s financial projections for the region.
Case Snapshot
| Industry | Mining |
| Property Type | Aggregate Mining Site |
| Jurisdiction | Utah (centrally assessed by the State Tax Commission) |
| Original Assessed Value | $57.6M |
| Revised Assessed Value | $8.2M |
| Assessment Reduction | $49.4M (85.75%) |
| First-Year Tax Savings | $473,527 |
Perpetual mine life assumption drives inflated assessment
The client’s internal tax team was facing escalating property tax bills on an aggregate mine in Salt Lake County that was nearing the end of its useful life. The state’s valuation approach—assuming a perpetual income stream—did not reflect the diminishing reserves, creating compliance and financial strains.
Without correction, this would have resulted in significantly inflated property taxes during the mine’s final years of operation, diminishing ROI and affecting capital planning for future materials operations in the region. The client needed an advocate with technical expertise and experience navigating Utah’s centralized assessment process.
DMA shifts valuation method to reflect declining resources
DMA’s centrally assessed property experts reviewed the valuation approach applied by the Utah State Tax Commission. The team identified that the use of a capitalized net revenue model failed to account for the mine’s limited remaining life. DMA recommended a shift to a discounted cash flow (DCF) methodology that more accurately reflected the mine’s production forecast and revenue horizon.
This required collaboration not only with the Commission but also with the client’s internal finance and operations teams to adjust the underlying financial reporting. DMA played a central role in reframing the valuation narrative and presenting the revised methodology and support to the Commission.
$49M Assessment Reduction and $474k in first-year savings
DMA’s efforts resulted in an 85.75% reduction in the assessed value—from $57.6M to $8.2M—yielding a one-year tax savings of $473,527. More importantly, the change in valuation methodology sets a precedent for more accurate assessments in future years, creating a long-term tax efficiency benefit.
The client continues to partner with DMA on property tax compliance and proactive review strategies across its broader asset portfolio, recognizing the value of ongoing vigilance and technical advocacy in centrally assessed jurisdictions.
Why DMA?
This engagement highlights DMA’s unmatched expertise in navigating centrally assessed property valuations—especially for mining and industrial clients with complex asset profiles.
What sets us apart:
- Deep technical knowledge of valuation methodologies, including DCF and income-based models
- Decades of experience working with state tax authorities, including the Utah State Tax Commission
- Proven results in reducing overassessments on high-value, multi-jurisdictional properties
Unlike firms that take a passive, compliance-only role, DMA brings a strategic, advocacy-driven approach. We partner closely with clients to challenge flawed assumptions, adjust reporting when needed, and present strong, data-backed positions to taxing authorities.
Our success-driven pricing and cross-functional teams ensure clients get more than just technical support—they get measurable, ongoing results.
Complex Property Tax Expertise
Partner with our property tax experts to navigate centrally assessed valuations, evolving asset profiles, and high-stakes industrial property assessments.
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