1. A. The market approach to value shall be considered where the transaction is an arms-length sale between a willing buyer and a willing seller of the subject property, an undivided interest in the property, or a comparable property. The Department may require detailed information regarding the terms of the sale.

2. B. The market approach to value shall be used only where the fol­lowing conditions exist:

   1. 1. An arms-length sale of more than 50% interest in the assets, such as mineral reserves, plant, equipment, and inventories, of a mine located wholly within the state of Arizona, or
   2. 2. The sale of more than 50% of the stocks, bonds, notes, convertible debentures, warrants, or other documents that represent a share in a corporation or a debt owed by a cor­poration. This sale is of limited use if the value of the cor­poration’s out-of-state assets is significant relative to its in-state assets subject to valuation under these rules.
   3. 3. Minority interest sales may be considered if the other indicators of value are less reliable and the sale price was derived from an analysis of a value for 100% of the mine unit.

Historical Note

Adopted effective December 10, 1985 (Supp. 85-6). Amended effective May 24, 1989 (Supp. 89-2).