ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

House: WM DP 5-4-0-0 | Third Read 36-20-4-0

Senate: FIN DPA 4-3-0-0 | Third Read 19-10-1-0

HB2104: agricultural property; classification; inspection

Sponsor: Representative Carter N, LD 15

Senate Engrossed

Overview

Prohibits a county assessor from reclassifying agricultural property for four years, if an owner prevails in an appeal.

History

Statute requires a county assessor notify a property owner whether his land has been approved or denied for agricultural property-tax classification no later than the time the assessor next mails the property’s notice of valuation. If the classification is denied, the assessor must also send the reason for the denial within 120 days after the owner applied; the owner then has the right to appeal the decision of the assessor as prescribed by statute. (A.R.S. § 42-12155)

Provisions

1. Prohibits a county assessor from reclassifying agricultural property for four years if an owner prevails in an appeal, unless one of the following occurs:

a. the owner files a change in use notice;

b. the property is spilt; or

c. a change in ownership or lease of the property. (Sec. 1)

2. Adds a taxable improvement made to a property to the list of exceptions that allow a county assessor to reclassify agricultural property or conduct an on-site inspection. (Sec. 1)

Senate Amendments

1. Allows a county assessor, if the assessor classifies a previously unreported improvement as agricultural property during the four-year exemption period, to assess the applicable property tax on the improvement for the current tax year and any prior year the improvement existed.

2. Reduces the period during which a county assessor is prohibited from conducting an on-site inspection or reclassifying the agricultural property from four years to three years.

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6. Initials VP/CS HB 2104

7. 6/10/2026 Page 0 Senate Engrossed

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