Board to sponsor bill extending pipeline right-of-way valuation method through 2031
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Summary
The Board of Equalization voted to sponsor legislation to extend Revenue and Taxation Code §401.1 — the statutory methodology for valuing intercounty pipeline rights of way — to avoid a 2027 sunset and to give assessors and stakeholders time to reevaluate prescribed values.
The board voted to sponsor legislation that would extend the statutory valuation methodology for intercounty pipeline rights of way (Rev. & Tax. Code §401.1) from its scheduled 2027 sunset to Jan. 1, 2031.
Legislative staff described the statute’s history: following a 1993 court decision that shifted assessment duties for intercounty pipeline rights of way to county assessors, the parties codified an agreed valuation methodology in 1996 as Rev. & Tax. Code §401.1. The statute prescribes a tiered dollars‑per‑mile schedule (adjusted annually for inflation) used statewide to value rights of way and to limit certain valuation challenges to assessments that do not use the prescribed methodology.
Property tax deputy director David Young told members the statute creates a presumption of correctness for assessors that use the prescribed methodology, while preserving limited challenges if assessors deviate. Staff recommended a five‑year extension to maintain continuity while assessors and stakeholders review whether tier thresholds remain appropriate after three decades.
The board’s motion to sponsor the extension passed by roll call; staff said they will draft and carry the bill in the 2026 legislative session and provide weekly updates to the board as session resumes in January.
Why it matters: Extending §401.1 preserves an established valuation approach used by county assessors and avoids litigated valuation disputes while staff and stakeholders examine whether the prescribed values remain fit for purpose.
Representative quote: "I respectfully request the board's approval to sponsor the legislative proposal to extend the sunset date on the valuation methodology specified in Rev. & Tax. Code §401.1 until 01/01/2031," legislative staff told the board.
What’s next: Staff will draft the bill for the 2026 session and said they will work with county assessors and pipeline stakeholders to review prescribed tier values during the extension period.