Energy Equipment Can Be Valued Based on Sale, Tax Court Says

Two renewable energy companies can use their membership interest sale to determine the taxable value of their equipment, the Arizona Tax Court held in a pair of opinions.

Arizona’s tax agency argued that the construction costs should be used to determine the property valuations for tax purposes, but the plain language of Arizona Revised Statute Section 42-14155 doesn’t impose such a requirement, Judge Erik Thorson said Sept. 12.

• “The statute does not state that cost must be determined by the construction costs—rather, the cost can be either acquisition cost or construction costs,” he said
• In 2021 PSEG Power Ventures LLC ...