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 it is the county assessor who values personal property for the purpose of determining the taxable value.
3. 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.
4. 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.
5. 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.
6. Adds personal property that is devoted to commercial or industrial use to those class one properties exempt from the limitations on valuation increases.
7. 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.
8. Clarifies that non-producing mines be valued for three valuation years after the last valuation year in which the mine was producing.
9. 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.
10. 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.
11. 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.
12. Removes, from an auction notice prepared by the State Treasurer, information regarding taxes, penalties, interest, and charges assessed against the owner for personal property.
13. Requires property owners to be notified of the full cash value of their property on or before August 31.
14. Changes the reference year from taxable to valuation for various property tax statutes.
15. Changes the reference from tax year to calendar year in the definition of “base value” for completing valuations.
16. Specifies various dates used in computing the “property change factor.”
17. Changes various article heading titles.
18. Makes technical corrections.
19. Makes conforming changes.
20. Provides for a general effective date.
Prepared by Senate Staff
February 8, 2001