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REFERENCE TITLE: agricultural land; valuation |
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State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026
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HB 2814 |
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Introduced by Representative Livingston
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AN ACT
amending section 42-13101, Arizona Revised Statutes; relating to the valuation of agricultural property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-13101, Arizona Revised Statutes, is amended to read:
42-13101. Valuation of agricultural land
A. Land that is used for agricultural purposes shall be valued using only the income approach to value without any allowance for urban or market influences.
B. The income of agricultural property land shall be determined using the capitalized average annual net cash rental of the property agricultural land. For the purposes of this subsection, the average annual net cash rental of the property:
1. Is the average of the annual net cash rental, excluding real estate and sales taxes, determined through an analysis of typical arm's length rental agreements collected for a five year five-year period before the year for which the valuation is being determined for comparable agricultural land that is used for agricultural purposes and located in the vicinity, if practicable, of the property agricultural land being valued.
2. Shall be capitalized at a rate 1.5 percentage points higher than the average long-term annual effective interest rate for all new farm credit services loans for the five year five-year period before the year for which the valuation is being determined.
C. For the purposes of this section, the county assessor shall exclude from the statutory valuation of agricultural land the contributory value of depreciable improvements, including structures, fixtures and permanent crops. The county assessor shall identify and value depreciable improvements, including structures, fixtures and permanent crops, separately using standard appraisal methodologies and techniques.