| 1 | 1 | | REFERENCE TITLE: assessed valuation; agricultural land State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 HB 2318 Introduced by Representatives Gillette: Biasiucci, Hendrix; Senator Angius An Act amending section 42-13101, Arizona Revised Statutes; relating to assessed valuation. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: assessed valuation; agricultural land |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session 2025 |
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| 11 | 11 | | HB 2318 |
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| 12 | 12 | | Introduced by Representatives Gillette: Biasiucci, Hendrix; Senator Angius |
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| 14 | 14 | | REFERENCE TITLE: assessed valuation; agricultural land |
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| 24 | 24 | | State of Arizona |
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| 26 | 26 | | House of Representatives |
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| 28 | 28 | | Fifty-seventh Legislature |
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| 30 | 30 | | First Regular Session |
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| 32 | 32 | | 2025 |
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| 40 | 40 | | HB 2318 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representatives Gillette: Biasiucci, Hendrix; Senator Angius |
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| 64 | 64 | | An Act |
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| 68 | 68 | | amending section 42-13101, Arizona Revised Statutes; relating to assessed valuation. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: Section 1. Section 42-13101, Arizona Revised Statutes, is amended to read: START_STATUTE42-13101. Valuation of agricultural land A. Land that is used for agricultural purposes shall be valued using only the income approach to value without any allowance for urban or market influences. B. The income of agricultural property land shall be determined using the capitalized average annual net cash rental of the property agricultural land. For the purposes of this subsection the average annual net cash rental of the property agricultural land: 1. Is the average of the annual net cash rental, excluding real estate and sales taxes, determined through an analysis of typical arm's length rental agreements collected for a five year period before the year for which the valuation is being determined for comparable agricultural land used for agricultural purposes and located in the vicinity, if practicable, of the property agricultural land being valued. 2. Shall be capitalized at a rate 1.5 percentage points higher than the average long-term annual effective interest rate for all new farm credit services loans for the five year period before the year for which the valuation is being determined. C. For the purposes of this section, agricultural land does not include permanent crops or any other improvement on the agricultural land that is subject to depreciation. END_STATUTE |
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| 80 | 80 | | Be it enacted by the Legislature of the State of Arizona: |
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| 82 | 82 | | Section 1. Section 42-13101, Arizona Revised Statutes, is amended to read: |
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| 84 | 84 | | START_STATUTE42-13101. Valuation of agricultural land |
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| 86 | 86 | | A. Land that is used for agricultural purposes shall be valued using only the income approach to value without any allowance for urban or market influences. |
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| 88 | 88 | | B. The income of agricultural property land shall be determined using the capitalized average annual net cash rental of the property agricultural land. For the purposes of this subsection the average annual net cash rental of the property agricultural land: |
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| 90 | 90 | | 1. Is the average of the annual net cash rental, excluding real estate and sales taxes, determined through an analysis of typical arm's length rental agreements collected for a five year period before the year for which the valuation is being determined for comparable agricultural land used for agricultural purposes and located in the vicinity, if practicable, of the property agricultural land being valued. |
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| 92 | 92 | | 2. Shall be capitalized at a rate 1.5 percentage points higher than the average long-term annual effective interest rate for all new farm credit services loans for the five year period before the year for which the valuation is being determined. |
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| 94 | 94 | | C. For the purposes of this section, agricultural land does not include permanent crops or any other improvement on the agricultural land that is subject to depreciation. END_STATUTE |
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