ARIZONA STATE SENATE

RESEARCH STAFF

KAITLYN NEFF

LEGISLATIVE RESEARCH ANALYST

NATURAL RESOURCES & ENERGY COMMITTEE

Telephone: (602) 926 -3171

TO:                  MEMBERS OF THE SENATE

NATURAL RESOURCES & ENERGY COMMITTEE

DATE:            February 18, 2019

SUBJECT:      Strike everything amendment to S.B. 1445, relating to pipeline valuation

Purpose

Requires the Arizona Department of Revenue (ADOR) to adjust the valuation of a pipeline for valuation of economic obsolescence.

Background

Statute directs ADOR to annually determine the valuation of all pipelines that operate in Arizona and report the locations, descriptions and valuations to the respective county assessor for inclusion on the county tax roll (A.R.S. T42, Ch. 14, art. 5).

There may be a fiscal impact to the state General Fund if adjusting valuation of pipelines impacts the amount of tax revenue collected.

Provisions

1. Requires ADOR to adjust the valuation of a pipeline for valuation of economic obsolescence.

2. Makes technical changes.

3. Becomes effective on the general effective date.