HB 2316 Summary

• Amends the valuation methodology for pipeline property in Arizona by modifying section 42-14204 to clarify terminology and update language standards (e.g., "percent" instead of "per cent").

• Adds section 42-14205 to allow the Department of Revenue to adjust the base value of pipeline property under three specific circumstances: court rulings finding the standard valuation method overvalues the pipeline, binding stipulations approved by courts in pending tax appeals, or written agreements between the department and pipeline companies to correct calculation errors.

• Requires any agreement to adjust base value for calculation errors must be in writing and signed by the department director and a pipeline company officer.

• Applies retroactively to tax years beginning after December 31, 2015.