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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
property tax; limited value; methodology
Purpose
Allows a county assessor to use either all parcels in the county or parcels within a specific market in the county when determining a property's limited property value (LPV) in specified circumstances.
Background
County assessors use Rule 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 full cash value (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) a property has been split or consolidated from January 1 through September 30 of the valuation year (A.R.S. § 42-13302).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a county assessor, in circumstances that trigger a Rule B valuation, to determine the level or percentage of FCV by using either:
a) all parcels in the county that are the same or similar in use or classification; or
b) parcels in a specific market established by the county assessor in the county that are the same or similar in use or classification.
2. Makes conforming changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 30, 2025
MG/KP/ci