ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	Senate: APPROP DP 10-0-0-0 | 3^rd Read 29-1-0-0

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SB 1603: appropriation; refunds; Transwestern Pipeline litigation

Sponsor:  Senator Gowan, LD  14

Committee on Appropriations

Overview

Appropriates monies to disburse to political subdivisions that paid refunds ordered in the Transwestern Pipeline Co. v. Arizona Department of Revenue litigation.

History

The Arizona Department of Revenue (ADOR) is required to value centrally assessed property for taxation purposes. This duty includes making annual determinations of the value of pipelines that operate in Arizona. After making the valuation as specified in statute, ADOR transmits the locations, descriptions and valuations to the respective county assessors (A.R.S. § 42-14203).

Transwestern Pipeline Co. owns centrally assessed pipeline that crosses Apache, Coconino, Maricopa, Mohave, Navajo, Pinal and Yavapai counties. Transwestern filed suit in Arizona Tax Court claiming that ADOR's assessment for tax years 2016 and 2017 overvalued pipeline property for taxation purposes. The Tax Court entered judgement in favor of Transwestern in 2018. ADOR subsequently appealed the ruling to the Court of Appeals, which partially affirmed the Tax Court decision in August 2020 (Transwestern Pipeline Co. v. Arizona Department of Revenue).

Provisions

1. Appropriates $16,100,000 from the State GF in FY 2022 to the Arizona Department of Administration to disburse to political subdivisions in Arizona that paid refunds ordered in the Transwestern Pipeline Co. v. Arizona Department of Revenue litigation. (Sec. 1)

2. Exempts the appropriation from lapsing. (Sec. 1)

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6.                   SB 1603

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