ARIZONA STATE SENATE
Phoenix, Arizona
property tax; corrections
and conformity
Purpose
Makes changes to conform
with existing standards for Arizona property tax statutes.
The Department of Revenue (DOR), the Arizona Tax Research Association, the existing Joint Legislative Oversight Committee on Property Tax Assessment and Appeals (Committee), and several county and city organizations have collectively reviewed the state property tax statutes for erroneous, obsolete, and conflicting language. S.B. 1518 compiles their collective recommendations to update and conform Arizona’s property tax statutes.
1. Establishes the Committee in statute and repeals the Committee on January 1, 2008.
2. Specifies that no more than two members of the same political party from each legislative chamber may serve on the Joint Legislative Oversight Committee on Property Tax Assessment and Appeals.
3. Specifies that it is the county assessor who values personal property for the purpose of determining the taxable value.
4. Includes split, subdivided, or consolidated properties under those properties for which a limited property value is to be established at a level comparable to other properties in the same or similar use or classification.
5. Specifies that if a property is split, subdivided, or consolidated between September 30 through December 31 of the valuation year, the total property value of the new property is to be the same as the value of the original.
6. Specifies that for the following valuation year the split, subdivided, or consolidated property is to be reevaluated for limited property value at a level comparable to similar properties.
7. Adds personal property that is devoted to commercial or industrial use to those class one properties exempt from the limitations on valuation increases.
8. Makes numerous changes to reflect the current practice regarding the assessment and appeals calendar in use for centrally valued properties and truth in taxation statutes.
9. Requires the Property Tax Oversight Commission (Commission) to hold hearings upon the request of a county, city, town or community college district regarding the calculation of the maximum allowable primary property tax levy limits.
10. Requires the Commission to establish procedures for collecting the information required by truth in taxation statutes.
11. Requires the Commission to notify the relevant county and county board of supervisors, on or before September 15, of any truth in taxation violation and of the necessary primary property tax levy adjustment.
12. Allows a county to request a hearing, on or before October 1, if the county disputes the Commission’s findings regarding truth in taxation violations.
13. Allows a governing board of a county, city, town or community college district to request a hearing with the Commission regarding the maximum allowable primary property tax levy and authorizes the Commission to resolve any disputes.
14. Requires the county governing body to correct its primary property tax levy and tax rate to reflect the allowable levy limit or truth in taxation limit if the governing body did not appeal the Commission’s violation notice by the specified date.
15. Requires the Commission to notify the county governing board and the county board of supervisors of the corrected levy limit within five days after a hearing if it is determined that an error was made in the calculation of the maximum allowable primary property tax limit.
16. Specifies that the maximum allowable primary property tax levy is to be used in determining the following year’s levy limit.
17. Clarifies that non-producing mines be valued for three valuation years after the last valuation year in which the mine was producing.
18. Removes the provision authorizing the county assessor to require any person to prepare a report of the person’s property to be valued under existing unsecured property laws.
19. Specifies that valuation appeals must be completed on the third Friday in November of the calendar year preceding the year in which the taxes are levied.
20. Specifies a period wherein the property tax oversight commission may alter the values used in computing the levy limitation if a court decision has produced a change in the tax role of two percent or more of net assessed valuation.
21. Removes, from an auction notice prepared by the State Treasurer, information regarding taxes, penalties, interest, and charges assessed against the owner for personal property.
22. Requires property owners to be notified of the full cash value of their property on or before August 31.
23. Changes the reference year from taxable to valuation for various property tax statutes.
24. Changes the reference from tax year to calendar year in the definition of “base value” for completing valuations.
25. Specifies various dates used in computing the “property change factor.”
26. Changes various article heading titles.
27. Changes how the county assessor transmits the primary assessed valuation of property values.
28. Makes changes regarding the membership of the Joint Legislative Oversight Committee on Property Tax Assessment and Appeals.
29. Changes the definition of "agricultural land" to "agricultural real property."
30. Exempts the assessment notice for class 4, single family rented residential property, from separately stating the full cash value of the land and the full cash value of the improvements.
31. Makes clarifying changes regarding property tax rolls.
32. Repeals a statute regarding notice and final adoption of county roll.
33. Restores the requirement that the county assessor must make an estimate of the personal property to be added to the tax role that is at least equal to the prior year’s taxable personal property value.
34. Removes a period wherein the Property Tax Oversight Commission may alter the values used in computing the levy limitation if a court decision has produced a change in the tax role of two percent or more of net assessed valuation.
35. Replaces numerous references to county boards of supervisors with county assessor in property tax assessment and valuation.
36. Makes technical and conforming changes.
Amendments adopted by the House of Representatives
1. Requires the Property Tax Oversight Commission (Commission) to hold hearings upon the request of a county, city, town or community college district regarding the calculation of the maximum allowable primary property tax levy limits.
2. Requires the Commission to establish procedures for collecting the information required by truth in taxation statutes.
3. Requires the Commission to notify the relevant county and county board of supervisors, on or before September 15, of any truth in taxation violation and of the necessary primary property tax levy adjustment.
4. Allows a county to request a hearing, on or before October 1, if the county disputes the Commission’s findings regarding truth in taxation violations.
5. Allows a governing board of a county, city, town or community college district to request a hearing with the Commission regarding the maximum allowable primary property tax levy and authorizes the Commission to resolve any disputes.
6. Requires the county governing body to correct its primary property tax levy and tax rate to reflect the allowable levy limit or truth in taxation limit if the governing body did not appeal the Commission’s violation notice by the specified date.
7. Requires the Commission to notify the county governing board and the county board of supervisors of the corrected levy limit within five days after a hearing if it is determined that an error was made in the calculation of the maximum allowable primary property tax limit.
8. Specifies that the maximum allowable primary property tax levy is to be used in determining the following year’s levy limit.
9. Specifies that no more than two members of the same political party from each legislative chamber may serve on the Joint Legislative Oversight Committee on Property Tax Assessment and Appeals.
10. Restores the requirement that the county assessor must make an estimate of the personal property to be added to the tax role that is at least equal to the prior year’s taxable personal property value.
11. Removes a period wherein the Property Tax Oversight Commission may alter the values used in computing the levy limitation if a court decision has produced a change in the tax role of two percent or more of net assessed valuation.
Senate Action
House
Action
FIN 2/26/01 DP (8-0-0-0) WM 4/03-01 DPA 10-0-0-0
3rd Read 3/14/01 30-0-0-0 3rd Read 4/17/01 53-1-6-0
Final Read 4/24/01 28-0-1-0-1
Signed by Governor 4/20/01
Chapter 267
Prepared by Senate Staff
March 31, 2001