HB 2822
Initials PRB/VP Page 1 Senate Engrossed
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-fifth Legislature
Second Regular Session
House: COM DP 8-2-0-0 | 3
rd
Read 35-24-1-0
Senate: COM DP 6-3-0-0 | 3
rd
Read 18-10-2-0
HB 2822: personal property; additional depreciation
Sponsor: Representative Weninger, LD 17
Senate Engrossed
Overview
Sets the valuation factor, for property tax purposes, for specific class one, class two (P) and class
six personal property acquired and initially classified on or after January 1, 2022, to 2.5%.
History
Arizona taxes all property based on its use unless it is constitutionally exempted (Article 9,
Sections 2, 2.1, 2.2 and 2.3) and has two types of property taxes that are levied:
1) Primary, which is for maintenance and operation of a taxing jurisdiction and
2) Secondary, which is for bonded indebtedness, voter-approved budget overrides and
special taxing districts.
Property is listed as either real (land, buildings and improvements to land) or personal (office
furniture, business equipment and tools used for business purposes) and divided into nine legal
classes. The valuation of property is divided between the Department of Revenue, which values
centrally assessed properties, and county assessors, who value all other properties.
Current law sets the valuation factor for the first tax year of assessment at 25% for specific
personal property in class one, class two (P) and class six. (A.R.S. § 42-13054)
Provisions
1. Sets the valuation factor at 2.5% for specific personal property in class one, class two (P) and
class six that is acquired and initially classified beginning during or after tax year 2022. (Sec.
1)
Senate Amendments
1. Clarifies the depreciation schedule applies to personal property acquired during or after TY
2022, rather than only acquired during TY 2022.
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal Note