Arizona Department of Revenue v. Salt River Project Agricultural Improvement & Power District

OPINION

WINTHROP, Judge.

¶ 1 In this consolidated appeal, we analyze the meaning of the term “original plant in service cost” for purposes of valuing electric transmission and distribution property under Arizona Revised Statutes (“A.R.S.”) section 42-14154 (Supp.2005).1 The primary issue raised is whether contributions in aid of construction (“CLAC”) are included in an electric utility company’s original plant in service cost for valuation and taxation purposes. The tax court resolved this issue of law affirmatively, in favor of the Arizona Department of Revenue (“the Department”) on…