Can property owners claim COVID-19 as an access interruption for tax purposes? Miller Theatres v. Tax Commission Explained

The Utah Supreme Court recently addressed whether COVID-19 and related government restrictions qualify as access interruptions under Utah’s property tax statutes in Miller Theatres v. Tax Commission. This case provides important guidance on the scope and application of Utah Code section 59-2-1004.6, commonly known as the Access Interruption Statute.

Background and Facts

A diverse group of businesses—including hotels, movie theaters, and retail stores—applied for property tax adjustments for the 2020 tax year. They argued that the COVID-19 pandemic and associated government guidelines constituted circumstances beyond their control that interrupted normal access to their properties, thereby decreasing fair market values. The Utah State Tax Commission rejected these applications on two grounds: first, that COVID-19 was not an enumerated qualifying circumstance and had not been added through administrative rulemaking; and second, that the pandemic did not physically impede access to the properties.

Key Legal Issues

The central issue was whether the Access Interruption Statute’s definition of “access interruption” included the COVID-19 pandemic. The statute defines access interruption as “interruption of the normal access to or from property due to any circumstance beyond the control of the owner,” including thirteen enumerated events such as road construction, vandalism, and adverse weather. Crucially, subsection (1)(n) allows for “any event similar to the events described in this Subsection (1), as determined by the commission by rule.”

Court’s Analysis and Holding

The Court applied correctness review to the Commission’s statutory interpretation, granting no deference to its legal conclusions. The Court found that while the word “including” in the statute creates a non-exclusive list of qualifying circumstances, subsection (1)(n) provides the specific mechanism for expansion: only the Tax Commission can add qualifying events through formal administrative rulemaking under the Utah Administrative Rulemaking Act. Because the Commission had not promulgated any rule designating COVID-19 as a qualifying circumstance, the pandemic could not serve as grounds for property tax adjustments under the statute.

Practice Implications

This decision establishes clear boundaries for the Access Interruption Statute’s application. Property owners cannot rely on broad interpretations of “any circumstance beyond the control of the owner” to expand the statute’s reach. Instead, they must demonstrate that the alleged access interruption falls within either the thirteen enumerated categories or circumstances formally added by Tax Commission rule. The Court notably declined to opine on whether COVID-19 might qualify as a similar event if the Commission were to consider adding it through proper rulemaking procedures, leaving that door open for future administrative action.