 |
ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
property tax; definitions
Purpose
Requires a county assessor to determine and classify a property’s current use from the totality of the circumstances, including the property's objectively verifiable characteristics, information and functions and defines current use.
Background
Property in Arizona is classified for assessment purposes into nine legal classes, with subclassifications in many of those classes. The classification is based on the current use of the property by its owner, such as commercial, agricultural or residential. Current usage means the use to which property is put at the time of valuation by the assessor or the Arizona Department of Revenue.
For the purposes or real property and centrally assessed property, valuation date means January 1 of the year preceding the year in which taxes are levied (A.R.S. § 42-11001).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a county assessor to determine a property's current use from the totality of the circumstances, including the property's objectively verifiable characteristics, information and functions.
2. Defines current use as the primary use of the property as of the date for which the valuation is determined as shown by objectively verifiable and economically substantive conditions, not including temporary, incidental, nominal or related-party activities or arrangements based only on contractual or intangible rights without corresponding physical use or legally enforceable restrictions.
3. Includes, in the definition of valuation date, any date required for determining the value of a property in a supplemental property valuation notice.
4. Removes the definition of current usage.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Removes the requirement for full cash value to be determined based on the owner's fee simple interest unless otherwise required by statute.
2. Removes the considerations for county assessors when valuing residential property.
3. Narrows the definition of valuation date.
4. Makes technical and conforming changes.
Senate Action
FIN 2/9/26 DPA 6-0-1
Prepared by Senate Research
February 10, 2026
MG/hk