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REFERENCE TITLE: personal property tax; computer software |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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SB 1279 |
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Introduced by Senators Yarbrough: McComish, Murphy, Reagan
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AN ACT
amending section 42-11001, Arizona Revised Statutes; amending title 42, chapter 19, article 1, Arizona Revised Statutes, by adding section 42‑19003.01; relating to personal property tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11001, Arizona Revised Statutes, is amended to read:
42-11001. Definitions
In chapters 11 through 19 of this title, unless the context otherwise requires:
1. "Assessed valuation" means the value derived by applying the applicable percentage prescribed by chapter 15, article 1 of this title to the full cash value or limited property value of the property, as applicable.
2. "Board" or "state board" means the state board of equalization.
3. "County board" means the county board of supervisors sitting as the county board of equalization.
4. "Current usage" means the use to which property is put at the time of valuation by the assessor or the department.
5. "Due date" means the next business day if a due date of any report, claim, return, statement, payment, deposit, petition, notice or other document or filing falls on Saturday, Sunday or a legal holiday.
6. "Full cash value" for property tax purposes means the value determined as prescribed by statute. If no statutory method is prescribed, full cash value is synonymous with market value which means the estimate of value that is derived annually by using standard appraisal methods and techniques. Full cash value is the basis for assessing, fixing, determining and levying secondary property taxes. Full cash value shall not be greater than market value regardless of the method prescribed to determine value for property tax purposes.
7. "Limited property value" means the value determined pursuant to section 42‑13301. Limited property value is the basis for:
(a) Computing levy limitations for counties, cities, towns and community college districts.
(b) Assessing, fixing, determining and levying primary property taxes.
8. "Net assessed value" means the assessed value minus any exempt property.
9. "Person" means a natural person, individual, proprietor, proprietorship, company, corporation, organization, association, joint venture, partner, partnership, trust, estate or limited liability company, the federal or state government, a political subdivision of a state or any other legal entity or combination of entities that owns, controls or has possession of real or personal property.
10. "Personal property" includes tangible property of every kind, both tangible and intangible, not included in the term real estate.
11. "Primary property taxes" means all ad valorem taxes except for secondary property taxes.
12. "Producing mine" or "mining claim" means a mine or mining claim from which coal or any other mineral or mineral substance, except for clay, sand, gravel, building stone or a mineral or mineral substance that is normally processed into artificial stone, has been extracted for commercial purposes at any time during a period of one year before the first Monday in January of the valuation year.
13. "Real estate" includes the ownership of, claim to, possession of or right of possession to lands or patented mines.
14. "Roll" means the assessment and tax roll.
15. "Secondary property taxes" means:
(a) Ad valorem taxes or special property assessments that are used to pay the principal of and the interest and redemption charges on bonded indebtedness or other lawful long‑term obligations that are issued or incurred for a specific capital purpose by a municipality, county or taxing district.
(b) Ad valorem taxes or assessments levied by or for special taxing districts and assessment districts other than school districts and community college districts.
(c) Amounts levied pursuant to an election to exceed a budget, expenditure or tax limitation.
16. "Tax year" for all property means the calendar year in which the taxes are levied.
17. "Valuation" means the full cash value or limited property value that is determined for real or personal property, as applicable.
18. "Valuation date", for the purposes of real property and property valued by the department, means January 1 of the year preceding the year in which taxes are levied.
19. "Valuation year" means:
(a) For real property and property valued by the department, the calendar year preceding the year in which the taxes are levied.
(b) For personal property, the calendar year in which the taxes are levied.
Sec. 2. Title 42, chapter 19, article 1, Arizona Revised Statutes, is amended by adding section 42-19003.01, to read:
42-19003.01. Business computers; hardware; software
A. Computers that are used in a trade or business, including the operating system software, shall be valued and assessed as tangible personal property.
B. Application software is considered to be intangible property, regardless of the method of delivery or whether or not installed on a computer.