ARIZONA STATE SENATE
Phoenix, Arizona
property tax
classification; conservation easement
Reclassifies, as class six property, real property subject to a conservation easement 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 the understanding that it must enforce the terms of the easement perpetually.
Currently, properties subject to a conservation easement in Arizona, if the land is vacant, fall under the class two property classification, which is assessed at sixteen percent. Beginning in the 2003 valuation year, H.B. 2106 reclassifies real property subject to a conservation easement as class six property, which is assessed at five percent and includes non-commercial historic properties, qualifying environmental technology properties and qualifying environmental remediation properties.
According to JLBC, H.B. 2106 will cost the state general fund $862,500 in FYs 2004-2005 and 2005-2006.
1. Reclassifies, as class six property, real property subject to a conservation easement beginning in the 2003 valuation year.
2. Provides for a general effective date.
PIRA 3/19/02 DP 5-2-0-3
WM 3/19/02 DP 7-3-0-0
3rd Read 4/04/02 36-19-5-0
Prepared by Senate Staff
April 11, 2002