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Board votes to sponsor extension of valuation methodology for intercounty pipeline rights of way
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Summary
The Board voted to sponsor legislation extending Revenue & Taxation Code section 401.1 (valuation methodology for intercounty pipeline rights of way) through Jan. 1, 2031, directing staff to draft bill language and consult assessors and pipeline stakeholders.
SACRAMENTO — The Board of Equalization voted Tuesday to sponsor legislation that would extend the statutory valuation methodology for intercounty pipeline rights of way (Revenue & Taxation Code §401.1) until Jan. 1, 2031.
Legislative staff explained the statute — established after litigation and codified in 1996 — prescribes tiered per‑mile valuation schedules that county assessors use when valuing pipeline rights of way. The statute provides a presumption of correctness for assessments that follow the prescribed methodology; it also constrains certain taxpayer challenges to specified aspects of valuation.
Mr. Angelo, legislative staff, told the board the current code was last extended in 2001 and would otherwise sunset effective Jan. 1, 2027. He asked the board to sponsor a five‑year extension to 2031 and to task staff to review whether the prescribed dollar‑per‑mile tiers remain appropriate. Deputy Director David Young confirmed stakeholders and assessors had been consulted and that staff anticipated no fiscal shift from a status‑quo extension; the board approved sponsorship by roll call.
Board member questions focused on whether taxpayers retain any challenge rights under the statute and on the process for reassessing the prescribed values. Young said the statute provides a presumption of correctness when the assessor uses the methodology but noted there is a trade‑off: certain challenges are limited if the assessor applies the statute, though taxpayers can still contest assessments in specified ways.
Why it matters: Extending §401.1 preserves a long‑used, administratively prescribed valuation approach for pipeline rights of way and avoids reopening complex litigation or creating valuation uncertainty for counties, pipeline owners and taxing jurisdictions.
Action taken: Vice Chair Lieber moved to sponsor the legislation and Deputy Controller Imran seconded. The board approved the motion on a roll call vote. Staff will draft bill language, continue consultations with county assessors and pipeline stakeholders, and provide weekly legislative updates when session resumes in January 2026.
