Assigned to FICO FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1095
property tax; golf courses; valuation
Purpose
Modifies the conditions that apply to a golf course owner's deed restriction and the process
a property owner and the county assessor must follow when a golf course property is split or
combined or all or part of the property is converted to a use other than a golf course.
Background
A golf course is substantially undeveloped land with golf-related amenities for public or
private club use, excluding commercial golf practice ranges, clubhouses, pro shops, restaurants or
similar buildings associated with the golf course. To qualify for property tax valuation as a golf
course, statute requires a golf course owner to record a deed restriction limiting the property to use
as a golf course for a period of at least 10 years. Land comprising the golf course playing area,
practice area and parking area is valued at $500 an acre. Property that is not included in the deed
restriction is valued comparably to similar commercial-use land.
The deed restriction must be refiled as necessary to ensure that the deed restriction always
applies for at least 10 years. If a property that qualifies and is taxed as a golf course is converted
to a different use during the prescribed 10-year period, the county assessor must add a penalty to
the tax levied against the property. The penalty is equal to the difference between the total property
tax that would have been charged if the property had not been valued as a golf course and the
actual property taxes paid during the shorter of either: 1) the past ten years; or 2) the period the
property was valued as a golf course (A.R.S ยงยง 42-13151; 42-13152; and 42-13154).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Specifies that a golf course owner must refile the property's deed restriction with the county
assessor when the property is split or combined.
2. Specifies that a deed restriction requires the property to be used solely as a golf course.
3. Defines converted to a different use as:
a) a change that violates the statutory requirements for property tax valuation as a golf
course; or
b) the removal, expiration without replacement or violation of the property's deed restriction. FACT SHEET
S.B. 1095
Page 2
4. Requires a property owner, if any part of the golf course property is converted to a different
use, to notify the county assessor personally, electronically or by certified mail within 30 days
following conversion.
5. Requires the county assessor to provide an electronic acknowledgement of receipt if the county
assessor accepts electronic filings or notices.
6. Requires the county assessor to assess the statutory penalty for converting any part of the
property to a different use after receiving notice from the property owner or after the county
assessor discovers that any part of the property has been converted to a different use.
7. Makes technical and conforming changes.
8. Becomes effective on the general effective date.
Prepared by Senate Research
January 25, 2024
MG/JC/cs