Arizona Tax Court Rules Membership Sale Price Valid for Facility Valuation

The Arizona Tax Court ruled that the purchase price from a membership interest sale can be used to calculate the full cash value of an electric generation facility for property tax purposes. The case involved a dispute between the taxpayer, an electric power generation facility owner, and the Arizona Department of Revenue regarding the valuation of the facility for tax years 2022-2025. The court determined that the taxpayer could use the purchase price allocation from a 2018 acquisition to report the facility’s cost, rejecting the Department’s argument that membership interest sales do not constitute facility acquisitions under the relevant statute. ...