property tax classification;
conservation easement
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Committee on Ways and Means |
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Committee on Public Institutions and Rural Affairs |
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Caucus and COW |
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Third Read |
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As Passed the House |
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HB 2106 includes real property subject to a conservation easement under the class 6 property designation, beginning in the 2003 valuation year.
A conservation easement is a voluntary agreement that allows a landowner to limit the type or amount of development on their property while retaining private ownership of the land. The easement is signed by the landowner, who is the easement donor, and the conservancy, who is the party receiving the easement. The conservancy accepts the easement with understanding that it must enforce the terms of the easement perpetually.
Currently, most properties subject to a conservation easement in Arizona fall under the class 2 property designation, if the land is vacant, and is assessed at 16%. HB 2106 includes these types of properties under the class 6 designation (which includes properties such as non-commercial historic properties, qualifying environmental technology properties, enterprise zones, and foreign trade zones), which is assessed at 5% of the value.
A fiscal note has been prepared for HB 2106. The total general fund impact is $862,500 in both FY 2004-2005 and FY 2005-2006.