2005 Arizona Revised Statutes - Revised Statutes §42-14403  Determining valuation; definitions

A. On or before August 31 of each year the department shall determine the valuation as of January 1 of the property of all telecommunications companies operating in this state at its full cash value. Real estate shall be valued at market value, and personal property shall be valued on a unitary basis at its historical cost less depreciation. In addition, the taxpayer may submit documentation showing the need for, and the department shall consider, an additional adjustment to recognize obsolescence using standard appraisal methods and techniques.

B. For the purposes of this section:

1. Depreciation is computed based on the tables adopted by the department in its personal property manual in effect on January 1, 1993 for the following categories:

(a) Buildings with a twenty-five year life.

(b) Cable with a fifteen year life.

(c) Telecommunications equipment with a five year life.

(d) Any other telecommunications property that is not included in subdivisions (a), (b) and (c) with a seven year life.

2. For cellular or other wireless telecommunications companies, the taxable unit is the applicable metropolitan statistical area or rural statistical area and does not include the value of any license that is issued by the federal communications commission.

C. For the purposes of this section:

1. "Historical cost" means the original cost as reported on the company's books and records.

2. "Obsolescence" means a reduction in the value of an asset resulting from functional or economic obsolescence.