Arizona 2025 Regular Session

Arizona Senate Bill SB1121 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	REFERENCE TITLE: property tax; limited value; methodology State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025 SB 1121 Introduced by Senator Mesnard AN ACT amending section 42-13302, Arizona Revised Statutes; relating to property valuation. (TEXT OF BILL BEGINS ON NEXT PAGE)
2	2
3	3
4	4
5	5
6	6
7	7
8	8
9	9
10	10
11	11	REFERENCE TITLE: property tax; limited value; methodology
12	12	State of Arizona Senate Fifty-seventh Legislature First Regular Session 2025
13	13	SB 1121
14	14	Introduced by Senator Mesnard
15	15
16	16	REFERENCE TITLE: property tax; limited value; methodology
17	17
18	18
19	19
20	20
21	21
22	22
23	23
24	24
25	25
26	26	State of Arizona
27	27
28	28	Senate
29	29
30	30	Fifty-seventh Legislature
31	31
32	32	First Regular Session
33	33
34	34	2025
35	35
36	36
37	37
38	38
39	39
40	40
41	41
42	42	SB 1121
43	43
44	44
45	45
46	46	Introduced by
47	47
48	48	Senator Mesnard
49	49
50	50
51	51
52	52
53	53
54	54
55	55
56	56
57	57
58	58
59	59
60	60
61	61
62	62
63	63
64	64
65	65
66	66	AN ACT
67	67
68	68
69	69
70	70	amending section 42-13302, Arizona Revised Statutes; relating to property valuation.
71	71
72	72
73	73
74	74
75	75
76	76	(TEXT OF BILL BEGINS ON NEXT PAGE)
77	77
78	78
79	79
80	80	Be it enacted by the Legislature of the State of Arizona: Section 1. Section 42-13302, Arizona Revised Statutes, is amended to read: START_STATUTE42-13302. Determining limited value in cases of modifications, omissions and changes A. In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification as prescribed in subsection E of this section: 1. Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section. 2. Property for which a change in physical, objectively verifiable use has occurred on the property since the preceding tax year. For the purposes of this paragraph and section 42-16002: (a) A change in the occupant or classification of a single-family residence is not a change in use, in and of itself. (b) A change in the classification of a guest ranch as defined in section 42-13551 is not a change in use, in and of itself. 3. Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total value of the modification is equal to or greater than fifteen percent of the full cash value. 4. Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity. B. In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels is the same as the total limited property value of the original parcel or parcels. For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification. The new parcel or parcels shall retain the same value-adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section. C. In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either: 1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification. 2. The total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established pursuant to section 42-13301. D. In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established as the lower of either: 1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification. 2. The limited property value established pursuant to section 42-13301. e. The county assessor shall determine the level or percentage of full cash value to be established pursuant to subsection A of this section using either of the following: 1. All parcels in the county that are of the same or similar use or classification. 2. Parcels in each market established by the county assessor in the county that are of the same or similar use or classification. END_STATUTE
81	81
82	82	Be it enacted by the Legislature of the State of Arizona:
83	83
84	84	Section 1. Section 42-13302, Arizona Revised Statutes, is amended to read:
85	85
86	86	START_STATUTE42-13302. Determining limited value in cases of modifications, omissions and changes
87	87
88	88	A. In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification as prescribed in subsection E of this section:
89	89
90	90	1. Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section.
91	91
92	92	2. Property for which a change in physical, objectively verifiable use has occurred on the property since the preceding tax year. For the purposes of this paragraph and section 42-16002:
93	93
94	94	(a) A change in the occupant or classification of a single-family residence is not a change in use, in and of itself.
95	95
96	96	(b) A change in the classification of a guest ranch as defined in section 42-13551 is not a change in use, in and of itself.
97	97
98	98	3. Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total value of the modification is equal to or greater than fifteen percent of the full cash value.
99	99
100	100	4. Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity.
101	101
102	102	B. In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels is the same as the total limited property value of the original parcel or parcels. For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification. The new parcel or parcels shall retain the same value-adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section.
103	103
104	104	C. In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either:
105	105
106	106	1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.
107	107
108	108	2. The total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established pursuant to section 42-13301.
109	109
110	110	D. In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established as the lower of either:
111	111
112	112	1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.
113	113
114	114	2. The limited property value established pursuant to section 42-13301.
115	115
116	116	e. The county assessor shall determine the level or percentage of full cash value to be established pursuant to subsection A of this section using either of the following:
117	117
118	118	1. All parcels in the county that are of the same or similar use or classification.
119	119
120	120	2. Parcels in each market established by the county assessor in the county that are of the same or similar use or classification. END_STATUTE