Assigned to FIN AS PASSED BY HOUSE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
AMENDED
FACT SHEET FOR S.B. 1224
property value; limited property value
Purpose
Adds properties that previously qualified for a property valuation protection option or a
statutory valuation and no longer qualify to the circumstances that require the county assessor to
determine the property's limited property value (LPV) at a level or percentage of full cash value
(FCV) that is comparable to other properties of the same or similar use or classification.
Background
County assessors use Rules A and B to calculate a property's LPV, which is used to
calculate property tax. The Rule B calculation sets the LPV at the level or percentage of the FCV
that is comparable to other properties of the same or similar use or classification. Rule B is used
to calculate a property's LPV when: 1) a property was erroneously omitted from the property tax
roll the preceding year; 2) a change in physical, objectively verifiable use has occurred since the
preceding tax year; 3) a property has been modified by construction where the modification is 15
percent or more of the FCV; and 4) the property has been split or consolidated from January 1
through September 30 of the valuation year (A.R.S. § 42-13302).
The Arizona Constitution allows a person who is 65 years old or older to apply to the
county assessor for a property valuation protection option if the person meets certain income
requirements. If the county assessor approves the property valuation protection option, the
property's FCV and LPV remain fixed, or frozen, as long as the owner remains eligible. If the
property is conveyed to a person that does not qualify for a freeze, the property reverts to its
original FCV (Ariz. Const. art. 9, § 18).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Adds, to the circumstances that trigger a Rule B valuation:
a) property that previously qualified for the property valuation protection option and the title
was conveyed to another person or the property owner no longer qualifies or did not reapply
for the property valuation protection option; and
b) property that previously qualified for a statutory valuation and no longer qualifies, unless
otherwise provided in law.
2. Defines statutory valuation as a specific formula for the calculation of FCV prescribed in
statute.
3. Becomes effective on the general effective date. FACT SHEET – Amended
S.B. 1224
Page 2
Amendments Adopted by the House of Representatives
• Modifies the definition of statutory valuation to remove a specific formula for the calculation
of LPV.
Senate Action House Action
FIN 2/3/25 DP 5-0-2 WM 3/19/25 DP 8-1-0-0
3
rd
Read 2/26/25 29-0-1 3
rd
Read 4/15/25 52-0-8
Prepared by Senate Research
April 16, 2025
MG/ci