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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
AMENDED
agricultural property; inspections; notice
Purpose
Requires the Arizona Department of Revenue (ADOR) and each county assessor to provide advance notice of specified property inspections and provide inspection reports to property owners. Exempts specified agricultural property from on-site inspections in consecutive years, with exceptions. Allows a county assessor, during the year following the year in which an on-site inspection is conducted, to assess the applicable property tax on a previously unreported taxable improvement if the county assessor classifies the improvement as agricultural property.
Background
Statute requires ADOR to investigate property values and request relevant public or private records relating to valuations or property taxes and allows ADOR to enter on and examine any property to determine its full cash value. If the owner or possessor of property refuses entrance, the Director of ADOR may estimate the valuation of the property (A.R.S. § 42-11053).
A county
assessor must conduct on-site inspections of 25 percent of agricultural
properties each year, ensuring that every agricultural property is reviewed and
appraised at least once every four years. If, during inspection, a property is
found not to qualify for agricultural classification, the owner must be
notified by certified mail of the reason for reclassifying the property and
include information for the property owner to appeal the reclassification
(A.R.S. §§ 42-12158
and
42-12156).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires ADOR, when conducting inspections under its property valuation investigation authority, to:
a) notify the owner or possessor of the property that an inspection will occur and provide the date of the inspection; and
b) provide a copy of the inspection report to the property owner or possessor of the property.
2. Requires the county assessor, when making an on-site inspection for agricultural property classification purposes, to:
a) notify the property owner before an inspection occurs and provide the date of the inspection; and
b) provide a copy of the inspection report to the property owner.
3. Allows a county assessor to develop a standardized form for on-site agricultural property inspection reports.
4. Exempts agricultural property that meets the criteria for agricultural classification from on-site inspections in consecutive years, unless:
a) the property owner files a change in use notice;
b) the property is split;
c) there is a change in ownership or lease of the property; or
d) a taxable improvement is made to the property.
5. Specifies that the county assessor is not required to send the statutorily required property inspection notice by certified mail.
6. Allows a county assessor, if the assessor classifies a previously unreported improvement as agricultural property during the year following the year in which an on-site inspection is conducted, to assess the applicable property tax on the improvement for the current tax year and any prior year the improvement existed.
7. Makes conforming changes.
8. Becomes effective on the general effective date.
Amendments Adopted by Committee
1. Allows a county assessor, if the assessor classifies a previously unreported improvement as agricultural property during the three-year exemption period, to assess the applicable property tax on the improvement for the current tax year and any prior year the improvement existed.
Amendments Adopted by Committee of the Whole
1. Replaces the three-year exemption from on-site agricultural property inspections with an exemption from on-site inspection in consecutive years, unless there is a change in use, a change in ownership, a property split or a taxable improvement.
2. Makes conforming changes.
House Action Senate Action
WM 1/21/26 DP 5-4-0-0 FIN 3/16/26 DPA 4-3-0
3rd Read 2/24/26 39-17-4
Prepared by Senate Research
June 9, 2026
MG/hk