Ariz. Admin. Code § 15-4-201

Current through Register Vol. 30, No. 24, June 14, 2024

Section R15-4-201 - Mine Valuation

A. For the purpose of determining the "full cash value", the Department shall annually utilize standard appraisal methods and techniques, and the 3 approaches to value. Those approaches, as defined in R15-4-203, R15-4-204, and R15-4-205, are:

1. The Income Approach,

2. The Cost Approach, and

3. The Market Approach.

B. The Department shall prepare appraisal reports on mine properties with a full cash value greater than $1,000,000. The appraisal reports shall include a description of the subject property, the full cash value determined for the property, and detail of the methods and calculations employed in determining the full cash value of the property. Information extracted from:

1. Recent field visits,

2. Technical reports, and

3. Engineering and financial studies for approved projects, shall be included, if available.

No copies of any pages from such field visit and technical reports and engineering and financial studies shall be included in the appraisal report. Technical literature data shall be included.

C. The Department shall, upon written request, hold informal conferences with the taxpayer after preliminary worksheets are issued and before the final values are established. At the informal conference, the Department shall review with the taxpayer the procedures and calculations employed in the valuation of the property. If the taxpayer requests a revision of the appraisal report, the taxpayer shall provide copies of feasibility studies and/or other information pertaining to the requested revision.

D. At the request of the taxpayer, preliminary appraisal worksheets shall be made available to the taxpayer at least 7 calendar days before the informal conference on the preliminary determination of value. If a date sooner than 7 calendar days is mutually agreeable between the taxpayer and the Department, then the 7-day requirement is waived. The Department shall release final worksheets and the determination of value by June 15. The Department shall provide the taxpayer with a final appraisal report by July 25 upon request.

E. The Department shall annually prepare an appraisal manual for mines and natural resources. The manual shall include the guidelines necessary for the appraising of the properties subject to these rules. The manual shall contain, but not be limited to appropriate schedules for the discount rate, ore reserve values, residual value factors, salvage value factors, reproduction cost new less depreciation and the effective income tax rate for valuation purposes. The Department shall annually hold a meeting for affected taxpayers concerning the manual prior to February 1 for the purpose of discussing changes the Department proposes to make in the manual for the current tax year. The Department shall make available any information which is not confidential in nature that is utilized in the determination of the schedules and other factors contained in the manual. Reporting forms and instructions shall be supplied to the taxpayers by February 1 of each year. The manual shall be made available to the taxpayer by March 15 of the tax year.

Ariz. Admin. Code § R15-4-201

Adopted effective December 10, 1985 (Supp. 85-6). Amended subsection (B) effective May 24, 1989 (Supp. 89-2).