HB2106 - 452R

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          House Engrossed
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  State of Arizona
  House of Representatives
  Forty-fifth Legislature
  Second Regular Session
  2002
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     HOUSE BILL 2106
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AN ACT

AMENDING SECTION 42-12006, ARIZONA REVISED STATUTES; RELATING TO PROPERTY TAX CLASSIFICATIONS.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 42-12006, Arizona Revised Statutes, is amended to read:

42-12006. Class six property

For purposes of taxation, class six is established consisting of:

1. Noncommercial historic property as defined in section 42-12101 and valued at full cash value.

2. Real and personal property that is located within the area of a foreign trade zone or subzone established under 19 United States Code section 81 and title 44, chapter 18, that is activated for foreign trade zone use by the district director of the United States customs service pursuant to 19 Code of Federal Regulations section 146.6 and that is valued at full cash value.

3. Real and personal property and improvements that are located in a military reuse zone that is established under title 41, chapter 10, article 3 and that is devoted to providing aviation or aerospace services or to manufacturing, assembling or fabricating aviation or aerospace products, valued at full cash value and subject to the following terms and conditions:

(a) Property may not be classified under this paragraph for more than five tax years.

(b) Any new addition or improvement to property already classified under this paragraph qualifies separately for classification under this paragraph for not more than five tax years.

(c) If a military reuse zone is terminated, the property in that zone that was previously classified under this paragraph shall be reclassified as prescribed by this article.

4. Real and personal property and improvements that are located in an enterprise zone, that are owned or used by a small manufacturing business that is certified by the department of commerce pursuant to section 41-1525.01 and that are valued at full cash value. Property may not be classified under this paragraph for more than five tax years. This paragraph applies only to classification of property for primary property tax purposes unless this limitation is finally adjudicated to be invalid, in which case this paragraph applies to classification of property for both primary and secondary property tax purposes.

5. Real and personal property and improvements or a portion of such property comprising a qualified environmental technology manufacturing, producing or processing facility as described in section 41-1514.02, valued at full cash value and subject to the following terms and conditions:

(a) Property shall be classified under this paragraph for twenty tax years from the date placed in service.

(b) Any addition or improvement to property already classified under this paragraph qualifies separately for classification under this subdivision for an additional twenty tax years from the date placed in service.

(c) After revocation of certification under section 41-1514.02, property that was previously classified under this paragraph shall be reclassified as prescribed by this article.

6. That portion of real and personal property that is used on or after January 1, 1999 specifically and solely for remediation of the environment by an action that has been determined to be reasonable and necessary to respond to the release or threatened release of a hazardous substance by the department of environmental quality pursuant to section 49-282.06 or pursuant to its corrective action authority under rules adopted pursuant to section 49-922, subsection B, paragraph 4 or by the United States environmental protection agency pursuant to the national contingency plan (40 Code of Federal Regulations part 300) and that is valued at full cash value. Property that is not being used specifically and solely for the remediation objectives described in this paragraph shall not be classified under this paragraph. For purposes of this paragraph, "remediation of the environment" means one or more of the following actions:

(a) Monitoring, assessing or evaluating the release or threatened release.

(b) Excavating, removing, transporting, treating and disposing of contaminated soil.

(d) Treatment, containment or removal of contaminants in groundwater or soil.

7. BEGINNING FOR THE 2003 VALUATION YEAR, REAL PROPERTY THAT IS SUBJECT TO A CONSERVATION EASEMENT CREATED AND RECORDED PURSUANT TO TITLE 33, CHAPTER 2, ARTICLE 4 AND THAT IS NOT LIMITED IN DURATION.