2013 Arizona Revised Statutes
Title 42 - Taxation
§ 42-14158 Existing generation facilities; computing adjusted original cost; computing full cash value; definitions


AZ Rev Stat § 42-14158 (through 1st Reg Sess 51st Leg. 2013) What's This?

42-14158. Existing generation facilities; computing adjusted original cost; computing full cash value; definitions

A. To achieve equity in the full cash values of existing and new electric generation facilities, the department shall compute adjusted original costs for existing generation facilities in lieu of actual cost for use in determining the full cash values in accordance with section 42-14156. Adjusted original costs shall be used to determine full cash values for existing generation facilities for tax year 2004 and subsequent years. Retirements of property in service before January 1, 2002 shall be deducted based on the percentage of adjusted original cost to actual original cost for each vintage year. For any property added to an existing generation facility on or after January 1, 2002, or for an electric generation facility placed in service on or after January 1, 2001, cost shall be determined in accordance with the provisions of section 42-14156.

B. To compute the adjusted original cost of property placed in service before January 1, 2002 for existing generation facilities, the department shall:

1. Determine the full cash value ratio.

2. Determine the original cost by vintage year for 2001 and all prior years.

3. Multiply the original costs for real property improvements and personal property by vintage year by the full cash value ratio to reflect the tax year 2003 full cash value by vintage year.

4. Divide the full cash value by vintage year as calculated in paragraph 3 of this subsection of real property improvements and personal property by the valuation factors reflected in the department's valuation tables as prescribed in section 42-14156, without phase-in adjustments prescribed in section 42-14156, subsection A, paragraph 3.

C. For the purposes of this section:

1. " Existing generation facility" means the property of an electric generation facility that was valued by the department as of January 1, 2001. It does not include any property added to the facility after January 1, 2002.

2. " Full cash value ratio" means the full cash value of the existing generation facility for tax year 2003, excluding the value of land associated with the facility, renewable energy equipment and materials and supplies as of December 31, 2001, divided by the total original cost, excluding the cost of land associated with the facility, renewable energy equipment and materials and supplies for the facility as of December 31, 2001.

3. " Original cost" means the actual cost of acquiring or constructing property, including additions, retirements, adjustments and transfers.

4. " Vintage year" means the first year of depreciation of the asset reflected on the owner's balance sheet.

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