ARIZONA HOUSE OF REPRESENTATIVES

57th Legislature, 2nd Regular Session

Majority Research Staff

Senate: FIN DP 6-1-0-0 | Third Read 26-1-3-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

SB 1294: property tax assessment; destroyed property

Sponsor: Senator Mesnard, LD 13

Committee on Ways & Means

Overview

Specifies that if the county assessor finds that the property has been destroyed by a verifiable accident, including, fire, flood or any other act of God, the county assessor can maintain the property classification in place on the date the property is destroyed for a period of five years or until an objectively verifiable change in use occurs, whichever is earlier.   

History

If a property is destroyed after the county assessor closes the rolls, the property owner can file a notice of claim or the county assessor can issue a notice of proposed correction to prorate the valuation of the property from the date of destruction.  If the county assessor finds that the property has been destroyed: 1) the county assessor shall prorate the value of the property from the lien date to the date of destruction; 2) the county assessor may maintain the property classification in place on the date of destruction for a period of five years or until an objectively verifiable change in use occurs, whichever is sooner; 3) the county assessor is required to notify the property owner of the property assessment; and 4) the county treasurer is required to compute the amount of taxes assessed against the property by applying the tax rate for the appropriate tax year to the original valuation prorated for the portion of the year the property was intact, plus the tax rate for the appropriate tax year to the reassessed value of the property prorated for the balance of the year. (A.R.S. 42-15157)

Provisions

1.   Removes the definition of destroyed. (Sec. 1)

2.   Specifies that if the county assessor finds that the property has been destroyed by a verifiable accident, including, fire, flood or any other act of God, the county assessor can maintain the property classification in place on the date the property is destroyed for a period of five years or until an objectively verifiable change in use occurs, whichever is earlier. (Sec. 1) 

3.   Makes technical and conforming changes. (Sec. 1)

4.   Applies retroactively to September 13, 2024. (Sec. 2)

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8.   Initials VP/CS                 SB 1294

9.   2/25/2026  Page 0 Ways & Means

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