ARIZONA HOUSE OF REPRESENTATIVES FIRST REGULAR SESSION - 1999

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_DPA_ For Committee on WAYS AND MEANS

_____ For Committee on ______________________________________

__X__ For Caucus and COW

_____ As Passed the House

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Abstract for HB 2624 (personal property tax; minimum valuation) Sponsor: McGibbon, Wong, Hart: Daniels, Griffin, Marsh

Overview:

HB 2624 reduces the minimum value for commercial, industrial and agricultural personal property from 10% to 2.5%.

History:

Article 9, Section 2, of the Arizona Constitution exempts personal property is used for agricultural purposes or in a trade or business from taxation up to the first $50,000. Personal property owned by a taxpayer above the $50,000 is taxed using an accelerated depreciation schedule developed by the Department of Revenue. Current law provides that the assessors shall further reduce the value on personal property as follows:

1st Assessment Year	2nd Assessment Year	3rd Assessment Year	4th Assessment Year	5th & Subsequent Year
35% of the scheduled depreciated value	51% of the scheduled depreciated value	67% of the schedules depreciated value	83% of the scheduled depreciated value	the scheduled depreciated value prescribed by DOR

Current law provides that the value of the personal property shall not be reduced below the Department's guidelines. Currently, the minimum value for any property in use is 10%.

Provisions:

Reduces the minimum value prescribed for commercial, industrial and agricultural personal property valued from 10 % to 2.5% beginning in tax year 2000.

HB 2624 was amended in the Ways and Means Committee as follows:

Added an effective date of December 31, 1999.

Prepared by: Melodie Jones, Ian Douglas

hb2624.cow 2/10/99 bh

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