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COPY DEC 14 2020 CLERK OF THE SUPERIOR Cq URT S. BARBA MOONEY, WRIGHT, MOORE & WILHOIT, PLLC DEPUTY CLERK Paul J. Mooney (No. 006708) Jim L. Wright (No. 010531) The Mesa Tower, Suite 16000 1201 South Alma School Road Mesa, Arizona 85210-1189 Telephone: (480) 615-7500 Email: pmooney(azstatetaxlaw.com Attorneys for Plaintiff SUPERIOR COURT OF THE STATE OF ARIZONA IN THE ARIZONA TAX COURT TX2020-001125 SAN DIEGO GAS & ELECTRIC No. 10 COMPANY, a California corporation, COMPLAINT AND NOTICE OF 11 Plaintiff, APPEAL OF PROPERTY TAX VALUATION 12 vs. 13 ARIZONA DEPARTMENT OF REVENUE, | _ Title 42 — Property Tax (Tier 3) an agency of the State of Arizona; 14 MARICOPA COUNTY, and YUMA COUNTY, each of which is a political (Assigned to: Hon. Christopher Whitten) 15 subdivision of the State of Arizona, 16 Defendants. 17 18 Pursuant to A.R.S. §§42-16204, and 42-16207, et seq., plaintiff, San Diego Gas & 19 Electric Company, a California corporation (“SDG&E”), appeals to the Arizona Tax 20 Court the valuation of its property for tax year 2021, as determined by the Arizona 21 Department of Revenue (“ADOR”). In support of this Complaint and Notice of Appeal, 22 SDG&E alleges as follows: 23 I. 24 At all times material to this action, SDG&E was doing business in the State of 25 Arizona as an electric transmission company, as defined by A.R.S. §42-14151(A)(5), and 26 it was the owner of legal and/or equitable title to “electric transmission property” that is MOONEY, WRIGHT, MOORE & WILHOIT, PLLC MEsA, AZ required to be valued pursuant to the valuation formula set forth in A.R.S. §42-14154. ADOR identifies the electric transmission property owned by SDG&E by taxpayer identification numbers 54-675 and 65-675 (hereinafter, “the Subject Property”). Il. ADOR is an agency of the State of Arizona, created and organized pursuant to A.R.S. §§42-1001, et seq. It is charged with the duty of determining annually the “full cash value” of the Subject Property, pursuant to a statutory formula set forth in A.R.S. §42-14154. Pursuant to A.R.S. §42-11001(6), the full cash value of the Subject Property is 9 defined as “the value determined as prescribed by statute,” which in this case is the value 10 that is determined pursuant to the method mandated by A.R.S. §42-14154. 11 Ti. 12 The Counties of Maricopa and Yuma (“the Counties”) are political subdivisions of 13 the State of Arizona. The Counties have statutory authority to assess, levy and collect 14 property taxes from SDG&E for themselves and for each taxing district appearing on their 15 tax rolls, based solely on the full cash value determined by ADOR, as allocated and 16 apportioned to each county. The Counties and ADOR are named as defendants in this 17 action pursuant to A.R.S. §42-16208. 18 IV. 19 ADOR determined the tax year 2021 full cash value of the Subject Property to be 20 $12,302,000, as of January 1, 2020. The tax year 2021 full cash value of the Subject 21 Property, as determined by ADOR, is excessive because it exceeds the value that would 22 have been determined if ADOR had followed the statutory formula set forth in A.R.S. 23 §42-14154. Pursuant to A.R.S. §42-14154, based on the information SDG&E was 24 required to report to ADOR under the provisions of A.R.S. §42-14152, the full cash value 25 of the Subject Property should be no more than $3,755,381, as of January 1, 2020. 26 MOONEY, WRIGHT, MOORE & WILHOIT, PLLC MESA, AZ V. For tax year 2021, the Counties have and/or will assess, levy and seek to collect property taxes from SDG&E for themselves and for each taxing district appearing upon their respective tax rolls, based on the full cash value determined by ADOR, as apportioned to each taxing district. VI. Pursuant to A.R.S. §§42-13301 and 42-13304(A)(2), a reduction in the full cash value of the Subject Property for tax year 2021 will require a corresponding reduction in the limited property value, which is the basis for the levy and assessment of all property 10 taxes by the Counties. 11 VIL. 12 Upon information and belief, the property taxes that will be assessed against the 13 Subject Property by the Counties for tax year 2021 will be based upon excessive full cash 14 and limited property values. As a result of these overvaluations, SDG&E will have to pay 15 more taxes than could legally be collected if the Subject Property had been valued 16 properly. Therefore, pursuant to A.R.S. §§42-16213 and 42-16214, SDG&E is entitled to 17 have the tax roll for the 2021 tax year corrected to reflect the correct full cash and limited 18 property values for the Subject Property, and to receive a refund of taxes levied, assessed 19 and paid based on the excessive tax year 2021 full cash and limited property values. 20 VII. 21 ADOR has a statutory duty to carry-out the duties imposed on it, pursuant to 22 A.R.S. §42-14153, one of which is to annually determine the full cash value of all electric 23 transmission property in accordance with the formula prescribed by A.R.S. §42-14154, 24 based-on information taxpayers such as SDG&E are required to report on an annual basis, 25 pursuant to A.R.S. §42-14152, and then apportion that value to each tax district. 26 MOONEY, WRIGHT, Moore & WILHOIT, PLLC MESA, AZ 1 IX. 2 ADOR failed to carry-out its duty in valuing SDG&E and it has ignored the 3 | statutory requirements that apply to it in valuing the Subject Property for tax year 2021 at 4 | a full cash value that exceeds the value prescribed by statute, A.R.S. §42-14154. S X. 6 Accordingly, a writ of mandamus lies to compel ADOR to carry-out the duties that 7 | are imposed upon it by law and to follow the requirements of A.R.S. §42-14154 in valuing 8 || the Subject Property for tax year 2021, and in all future tax years. 9 WHEREFORE, SDG&E requests that this Court: 10 1. Determine and fix the full cash value and limited property values of the 11 || Subject Property for tax year 2021 at no more than $3,755,381, pursuant to the formula set 12 | forth in A.R.S. §42-14154; 13 2. Render judgment that SDG&E have and recover from Defendant Counties a 14 | refund in the amount of any excess taxes it has to pay based on the tax year 2021 full cash 15 | and limited property values determined by this Court, together with interest thereon at the 16 | legal rate from the date(s) of payment, until refunded by the Counties; 17 3. Enter a writ of mandamus to compel ADOR to comply with §42-14154; 18 4. Award SDG&E its attorneys’ fees and expert witness expenses incurred 19 | herein, pursuant to A.R.S. §§12-348(B) and/or 12-2021, together with its costs; and 20 5. Grant such further relief as the Court deems proper. 21 DATED this 14th day of December, 2020. 22 MOONEY, WRIGHT, MOORE & WILHOIT, PLLC 23 By:_/s/ Paul J. Mooney 24 Paul J. Mooney Jim L. Wright 25 Attorneys for Plaintiff 26 MOONEY, WRIGHT, MOORE & WILHOIT, PLLC MESA, AZ -~ 4 -