Chapter 0251 - 461R - C Ver of SB1168

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 9-467, Arizona Revised Statutes, is amended to read:

START_STATUTE9-467. Building permits; issuance; distribution of copies; subsequent owner

A. Any city or town requiring the issuance of a building permit shall transmit one copy of the permit to the county assessor and one copy to the director of the department of revenue. Permit copies shall provide the permit number, issue date and parcel number. On final inspection the issuance of the certificate of occupancy or the certificate of completion or on the expiration or cancellation of the permit, the assessor and the department of revenue shall be notified in writing or in electronic format of the permit number, parcel number, issue date and completion date.

B. If a contractor is employed for any construction exceeding the cost of ten thousand dollars, a building permit may not be issued unless the contractor holds a valid privilege tax license issued pursuant to section 42‑5005 for engaging or continuing in the business of contracting.

C. If a person has constructed a building or an addition to a building without obtaining a building permit, a city or town shall not require a subsequent owner to obtain a permit for the construction or addition done by the prior owner before issuing a permit for a building addition except that nothing in this section shall be construed as prohibiting the enforcement of an applicable ordinance or code provision which affects the public health or safety. END_STATUTE

Sec. 2. Section 11-321, Arizona Revised Statutes, is amended to read:

START_STATUTE11-321. Building permits; issuance; distribution of copies; subsequent owner

A. Except in those cities and towns which have an ordinance relating to the issuance of building permits, the board of supervisors shall require a building permit for any construction of a building or an addition thereto exceeding a cost of one thousand dollars within its jurisdiction. The building permit shall be filed with the board of supervisors or its designated agent.

C. Where deemed of public convenience, the supervisors shall permit the application for and the issuance of building permits by mail.

D. One copy of the building permit required by the terms of subsection A of this section shall be transmitted to the county assessor and one copy to the director of the department of revenue. The permit copy provided to the assessor and the department of revenue shall have the permit number, the issue date and the parcel number for which the permit is issued. On final inspection the issuance of the certificate of occupancy or the certificate of completion or on the expiration or cancellation of the permit, the assessor and the department of revenue shall be notified in writing or in electronic format of the permit number, parcel number, issue date and completion date.

E. If a person has constructed a building or an addition to a building without obtaining a building permit, a county shall not require a subsequent owner to obtain a permit for the construction or addition done by the prior owner before issuing a permit for a building addition except that nothing in this section shall be construed as prohibiting the enforcement of an applicable ordinance or code provision which affects the public health or safety. END_STATUTE

Sec. 3. Section 42-11102, Arizona Revised Statutes, is amended to read:

START_STATUTE42-11102. Exemption for government property; application of procedural provisions

A. Federal, state, county and municipal property is exempt from taxation, including:

1. Property that is owned by a nonprofit organization but is used by this state or a political subdivision during the entire tax year exclusively for a governmental activity.

2. Property that is the subject of a lease‑purchase agreement that is authorized by law and in which this state or a political subdivision is the lessee‑purchaser and the property is used by this state or a political subdivision during the entire taxable year exclusively for a governmental activity.

3. Improvements that are placed on public lands held under grazing permits, the title to which passes to the federal government.

B. Article 4 of this chapter does not apply to the exemption from taxation for federal, state, county and municipal property.

C. Notwithstanding subsection A of this section relating to state property, property that is owned by the Arizona state retirement system, the corrections officer retirement plan, the public safety personnel retirement system or the elected officials' retirement plan, that is not used during the entire taxable year exclusively for a governmental activity and that is acquired either by foreclosure of an authorized investment or for the purposes of producing income for the system or plan is subject to either a government property lease tax under chapter 6, article 5 of this title or, if a government property lease tax is not paid or is not economically feasible, to voluntary contributions of money to the county, municipality, school district, and community college district and any other special taxing district in which the property is located in lieu of taxes otherwise levied by those entities. The system or plan may not continue to hold title to the property as an authorized investment under title 38 unless a tax or voluntary contribution is paid pursuant to this subsection. On or before April 1 of each year the plan or system shall notify the county assessor of the county in which the property is located whether a government property lease tax or voluntary contribution will be paid. If a tax is not economically feasible, the county assessor may require the plan or system to pay voluntary contributions. If the system or plan pays a voluntary contribution:

1. The assessor shall determine the full cash value of the property at market value and shall transmit that determination to the board of supervisors on or before the third Monday in June.

2. On or before the third Friday in September the assessor shall compute the contribution to be made based on the determined valuation using the method of assessment applied in assessing ad valorem taxes of properties of similar character and devoted to the same use in the county for the current tax year.

3. The assessor shall:

(a) Submit the computation of the contribution to the board of supervisors at the same time that the assessor submits the assessment roll.

(b) Notify the county school superintendent of the amount of the contribution.

4. The plan or system shall pay one‑half of the amount determined not later than the first Monday in November and the other one‑half not later than the first Monday in May of the next year.

5. The county treasurer shall distribute the monies received to the various taxing jurisdictions in the same manner as property taxes are distributed.

6. Any person, public official or taxing entity that is not satisfied by a determination under this subsection has the same remedies provided by this title or may file a civil action to determine the correct amount due. In any such action the only issue shall be the correctness of the computation of the amount due.

D. Notwithstanding subsection A, if permanent improvements are constructed on land owned by and leased from an agricultural improvement district established pursuant to title 48, chapter 17, and the improvements are not otherwise entitled to any constitutional exemption from property taxation, then the improvements are subject to taxation in the name of the lessee or sublessee in the same manner as other property used for similar purposes. END_STATUTE

Sec. 4. Section 42-13254, Arizona Revised Statutes, is amended to read:

END_STATUTE42-13254. Date of issue; effective date

A. The department shall issue an equalization order no later than January 15 of the valuation year.

B. The equalization order is for the valuation year in which the order is issued.

C. The assessor shall not issue a notice for property affected by the equalization order pursuant to section 42‑15101 until the assessor has complied with the equalization order issued pursuant to this article and the compliance is confirmed by the department, unless the assessor has filed an appeal with the court pursuant to section 42‑16212. On a showing of good cause, the department may extend the date for mailing issuing the notice of valuation under section 42-15101 for not more than fifteen days.START_STATUTE

Sec. 5. Section 42-15101, Arizona Revised Statutes, is amended to read:

START_STATUTE42-15101. Annual notice of full cash value

A. Except as provided by section 42‑13254, on any date before March 1 of each year the county assessor shall notify each owner of record, or purchaser under a deed of trust or an agreement of sale, of property that is valued by the assessor as to the property's full cash value and the limited property value, if applicable, to be used for assessment purposes.

B. The notice under this section shall be in writing and shall be mailed, delivered by common carrier or upon request of the taxpayer transmitted electronically, to the person's last known mailing, delivery or electronic address. With respect to any property transferred by a beneficiary deed pursuant to section 33‑405, until the county assessor is notified by the beneficiary after the death of the owner of a in writing, accompanied by a copy of the last surviving owner's certified death certificate and the change of address, mailing of the notice to the last known address of the deceased owner is deemed a mailing to the beneficiary’s last known mailing, delivery or electronic address as required by this section.

C. On the same date each year the assessor shall certify to the board of supervisors and the department the date on which all notices under this section were mailed.

D. The director may extend the final date for mailing notices beyond March 1 for a period of not more than thirty days for delays caused by an act of God, flood or fire. If the director extends the mailing date, the extension applies to all property valued by the assessor.

E. After the mailing date of the notice any person who owns, claims, possesses or controls property that is valued by the assessor may inquire of and be advised by the assessor as to the valuation of the property determined by the assessor, but the assessor shall not change the roll except as provided by chapter 16, article 2 of this title or as otherwise provided by law.END_STATUTE

Sec. 6. Section 42-16051, Arizona Revised Statutes, is amended to read:

END_STATUTE42-16051. Petition for assessor review of improper valuation or classification

A. An owner of property which in the owner's opinion has been valued too high or otherwise improperly valued or listed on the roll may file a petition with the assessor on a written form prescribed by the department.

B. The petition shall state the owner's opinion of the full cash value of the property and substantial information that justifies that opinion of value for the assessor to consider for purposes of basing a change in classification or correction of the valuation. For purposes of this subsection, the owner provides substantial information to justify the opinion of value by stating the method or methods of valuation on which the opinion is based and:

1. Under the income approach, including the information required in section 42‑16052.

2. Under the market approach, including the full cash value of at least one comparable property in the same geographic area or the sale of the subject property.

3. Under the cost approach, including the cost to build or rebuild the property plus the land value.

C. The petition may include more than one parcel of property if they are part of the same economic unit according to department guidelines or if they are owned by the same owner, have the same use, are appealed on the same basis and are located in the same geographic area, as determined pursuant to department guidelines, and are on a form prescribed by the department.

D. The petition shall be filed within sixty days after the date the assessor mailed, delivered by common carrier or transmitted electronically, the notice of valuation under section 42‑15101. United States postal service postmark dates are evidence of the date petitions were filed for purposes of this subsection.START_STATUTE