Arizona Court of Appeals Division One Upholds Decision to Exclude Consideration of Obsolescence From Tax Valuation of Pipeline Under Statutory Formula.

On an appeal of a tax valuation, Division One held that the Arizona Department of Revenue correctly declined to factor in alleged obsolescence in applying the statutory valuation set forth at A.R.S. § 42-14204. The statute provides the exclusive method of valuation and does not include obsolescence as a factor. The tax court correctly ordered the taxpayer to pay interest from the date of underpayment.

Judge Irvine wrote the opinion; Presiding Judge Portley and Judge Kessler concurred.