Bill
Number: S.B. 1204
Mesnard Floor Amendment
Reference to: printed bill
Amendment drafted by: Molly Graver
FLOOR AMENDMENT EXPLANATION
1. Modifies the requirement that the base value used to determine the full cash value (FCV) must be adjusted by removing the direction that the base value be adjusted to more accurately reflect the market value in all future tax years.
2. Removes the statement that the overall objective is to achieve FCVs that are consistent with independent determinations of the market valuation of a pipeline property and to establish uniform and stable FCVs from one tax year to the next.
3. Specifies that, if a final ruling finds that the statutory computation of the FCV is more than the market value, the FCV of the system plant in service determined by the court in the tax appeal for the most recent tax year must be the base value for the subsequent tax year.
4. Requires the Arizona Department of Revenue (ADOR) to adjust all valuations for future years using the statutory valuation method.
5. Requires ADOR to adjust the base value as set forth in the binding stipulation or the agreement, whichever applies.
6. Modifies the circumstance involving the correction of an agreement between a pipeline company and ADOR to correct an error in the calculation of the FCV of the system plant in service by removing the specification that an error could have been the result of using inaccurate or incorrect information in the past and had not been corrected under statutes governing the correction of property tax errors.
7. Removes the statement of legislative findings.