Section 42-14503 - Computing valuation of airport fuel delivery company property; definitionsA. The department shall determine the valuation of all real and personal property of an airport fuel delivery company as follows: 1. Determine the base value.2. Compute the asset change factor.3. Multiply the base value by the asset change factor to compute the preliminary system value. If the asset change factor does not apply, the preliminary system value is the system net book value of plant in service as of December 31 immediately preceding the current valuation year.4. Add the value of construction work in progress, materials and supplies and noncapitalized leased operating property to the preliminary system value.5. Compute the allocation factor.6. Multiply the sum computed pursuant to paragraph 4 of this subsection by the allocation factor.B. In this section, unless the context otherwise requires: 1. "Allocation factor" means the factor used to assign part of the system value to this state and is computed by dividing the total Arizona original cost of plant in service, materials and supplies, construction work in progress and noncapitalized leased operating property as of December 31 of the preceding calendar year by the corresponding total system original cost as of December 31 of the preceding calendar year.2. "Asset change factor" means the ratio derived from dividing the system net book value of plant in service as of December 31 immediately preceding the current valuation year by the system net book value of plant in service as of December 31 immediately preceding the prior valuation year. If the denominator is zero, the asset change factor does not apply.3. "Base value" means the final full cash value of the system plant in service in the previous valuation year. If the property was not subject to property valuation in this state in the previous valuation year, the value is the system net book value of plant in service plus the value of construction work in progress, materials and supplies and noncapitalized leased operating property. If ownership changes, the base value shall be transferred to the new owner.4. "Construction work in progress" means eighty-five per cent of the total of the value of the balances of work orders for plant in process of construction on the last day of the preceding calendar year.5. "Noncapitalized leased operating property" means property subject to an agreement that transfers the use of property to the lessee during the term of the lease and that is not capitalized on the lessee's balance sheet.6. "Preliminary system value" means the base value multiplied by the asset change factor.7. "System net book value of plant" means the original cost of the system plant in service less the related accumulated provision for depreciation.8. "System value" means the sum of the system value of plant in service, construction work in progress, materials and supplies and noncapitalized leased operating property.