Assigned to FIN                                                                                                            FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR H.B. 2017

 

personal property tax assessment: corrections

 

Purpose 

 

            An emergency measure that makes corrections to the property tax administration statutes.

 

Background

 

Prior to 1999, personal property was placed on either a secured or unsecured property tax roll.  Property was to be placed on the unsecured property tax roll if a person owned real property in the county with a value of less than $200 or if a person or entity that owned real property having a value of $200 or more failed or refused to state the parcel number of the real property required if the property was to be considered secured. 

 

During the 1999 legislative session, a bill was passed that eliminated these two classes of personal property and created one personal property tax roll (Laws 1999, Chapter 253).  According to the Department of Revenue (DOR), this was to allow taxpayers to receive one tax bill instead of receiving separate billings for unsecured personal property throughout the year. This bill also repealed the requirement for the county assessor to send notices of property tax due at the same time the Notice of Valuation is sent for personal property.  This is a duty of the county treasurer, not the assessor.  H.B. 2017 allows the county treasurer in each county to handle notices for property taxes due for the personal property tax roll.

 

According to the Arizona Association of Counties, part of the intent of the 1999 legislation was to end all proration.  To this end, proration of commercial personal property was eliminated in the 2000 legislative session, but the section on mobile homes was overlooked (Laws 2000, Chapter 84).

 

Also during the 2000 legislative session, a measure was passed to allow for a four-year phase-in period for combining the two categories of personal property for tax purposes.  This was done in order to address concerns expressed by counties regarding the implementation timetable and the effect it might have on county budgets from shifting property from one fiscal year to another fiscal year. This measure changed the due date for Arizona business personal property statements from May 1 to April 1.  There has been concern expressed by the county assessors that the change did not allow for enough time for reports to be processed and statements to be generated and sent.

 

According to Legislative Council, some of the provisions contained in Laws 2000, Chapter 84 amended the wrong version of the personal property statutes.  H.B. 2017 repeals two of the statutes enacted that were improperly drafted and makes further modifications. 

 

According to the Department of Revenue, there is no anticipated fiscal impact to the state general fund associated with this measure.

 

Provisions

 

1.      Repeals Laws 2000, Chapter 84, section 4 relating to the notice of value and replaces it with modifications to the 1999 law regarding this section, and requires the county treasurer in each county to handle notices for property taxes due for the personal property tax roll.

 

2.      Repeals Laws 2000, Chapter 84, section 5 relating to the certification of the unsecured personal property tax roll. The 1999 version of this section is maintained.

 

3.      Repeals the ability of the county assessor to prorate the value of mobile homes that have not previously been titled in this state, if the mobile home is added after the close of the property tax roll.

 

4.      Changes from June 30, to October 1, the date that a county assessor must mail a notice of valuation.

 

5.      Contains an emergency clause.

 

House Action

 

WM                 1/23/01            DPA    10-0-0-0

3rd Read           1/29/01                        57-0-3-0

 

 

Prepared by Senate Staff

March 8, 2001