Opinion ID: 1163456
Heading Depth: 1
Heading Rank: 1

Heading: conclusion

Text: A.R.S. § 42-147 establishes a property valuation system designed to estimate fair market value. It was intended to bring uniformity to a difficult process by first requiring an estimate of fair market value through the reproduction cost approach, then, if the owner was dissatisfied, by a variation of the income approach to fair market value. Then, on appeal, the statute allows the reviewing body to consider all facts and techniques recognized by the appraisal profession in determining fair market value. Thus, if the SLBR technique provides a figure that falls within the range of reasonable market values, it should be upheld on final review. However, if, as may be the situation in the present case, the value estimate from use of the SLBR income method produces a figure not reasonably within the range of market value indicated by the facts, the final reviewing body may use all other relevant information and standard techniques of valuation to determine fair market value. § 42-147(D). This result applies the statute in a way providing uniform taxation for all commercial property and retail stores in class 3. This is the most reasonable interpretation of the law because it furthers the stated legislative goal and provides a sound constitutional basis for the law. On this record, of course, and as a court of review, there is no way we can determine the value of the property. The tax court, following the statutory procedure in estimating value and applying the prescribed methods, will have to determine the property's market value. We therefore reverse the tax court's judgment, vacate the court of appeals' opinion, and remand to the tax court for further proceedings consistent with this opinion. MOELLER, V.C.J., and CORCORAN, J., concur.