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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
property tax assessment; destroyed property
Purpose
Retroactive to September 14, 2024, expands the county assessor's authority to prorate the value of destroyed property for property tax purposes by removing the statutory definition of destroyed. Specifies that only a property destroyed by a verifiable accident, including fire, flood or an act of God, may retain its property classification for five years or until a change in use occurs.
Background
Prior to 2024, statute required county assessors, if the county assessor found that the property had been destroyed after closing the tax rolls, to prorate the property value and compute the tax from the lien date to the date of destruction. Laws 2024, Chapter 34 limited proration to only property destroyed by a verifiable accident, including fire, flood or any other act of God, and allowed property destroyed by a verifiable accident to remain in the same classification for up to five years or until an objectively verifiable change in use, whichever is earlier (A.R.S. § 42-15157).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Expands the county assessor's authority to prorate the value of destroyed property by removing the statutory definition of destroyed.
2. Specifies that the county assessor's authority to maintain a property classification in place for a period of five years or until an objectively verifiable change in use applies only to property that has been destroyed by verifiable accident, including fire, flood or any act of God.
3. Makes technical and conforming changes.
4. Becomes effective on the general effective date, retroactive to September 14, 2024.
Prepared by Senate Research
January 29, 2026
MG/SJ/hk