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REFERENCE TITLE: property tax appraisal methods; viewsheds |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SB 1434 |
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Introduced by Senator Griffin
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AN ACT
Amending section 42-11054, Arizona Revised Statutes; relating to property tax appraisals.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11054, Arizona Revised Statutes, is amended to read:
42-11054. Standard appraisal methods and techniques
A. Subject to subsection B of this section, the department shall:
1. Prescribe guidelines for applying standard appraisal methods and techniques that shall be used by the department and county assessors in determining the valuation of property.
2. Prepare and maintain manuals and other necessary guidelines, consistent with this section, reflecting the standard methods and techniques to perpetuate a current inventory of taxable property and the valuation of that property.
B. Before they are adopted, the department shall submit each substantive proposed guideline, table and manual that is developed, amended or otherwise modified from and after December 31, 2006 to the joint legislative oversight committee on property tax assessment and appeals. The department shall not finally adopt, amend or otherwise modify a substantive guideline, table or manual for at least thirty days after submitting the measure to the committee. The committee may hold one or more informational hearings on the proposed measure within thirty days after submission. In adopting, amending or modifying the measure the department shall consider the committee's comments. If the committee fails to hold a hearing within thirty days after submission, the department may adopt, amend or modify the measure without further consideration.
C. In applying prescribed standard appraisal methods and techniques:
1. Current usage shall be included in the formula for reaching a determination of full cash value.
2. Solar energy devices, as defined in section 44-1761, grid‑tied photovoltaic systems and any other device or system designed for the production of solar energy primarily for on-site consumption are considered to have no value and to add no value to the property on which such device or system is installed.
3. Energy efficient building components, renewable energy equipment and combined heat and power systems are considered to add no value to the property, if the property owner provides the county assessor with documentation of all elements that qualify pursuant to this paragraph, including documents showing actual acquisition and installation costs. The documentation must be submitted to the county assessor no later than six months before the notice of full cash value is issued for the initial evaluation year pursuant to section 42‑15101 or, if the component is added after September 30 of the preceding year, no later than March 31 of the initial valuation year. For the purposes of this paragraph:
(a) "Combined heat and power system" means a system that generates electricity or mechanical power and useful thermal energy in a single, integrated system such that the useful power output of the facility plus one‑half the useful thermal output during any twelve-month period is no less than 42.5 per cent percent of the total energy input of fuel to the facility.
(b) "Energy efficient building components" means high performance sustainable building components installed so that the buildings or building components meet or exceed the energy efficiencies prescribed by the United States environmental protection agency energy star program or by a leadership in energy and environmental design green building rating standard developed by the United States green building council, or an equivalent green building standard, or that are at least fifteen per cent percent more energy efficient than the international energy conservation code in effect at the time of building permit issuance.
(c) "Renewable energy equipment" means equipment that is used to produce energy primarily for on-site consumption from renewable resources, including wind, forest thinnings, agricultural waste, biogas, biomass, geothermal, low-impact hydropower and solar energy not included under paragraph 2 of this subsection.
4. The value of a viewshed is presumed to be included in the purchase price of real property, as reported in the affidavit of legal value under section 11-1133, and may not be considered as adding a separate value increment to, or to have been omitted from, the full cash value derived from the purchase price. For the purposes of this paragraph, "viewshed" means the natural environment that is visible from one or more viewing points on the real property.
D. If the methods and techniques prescribe using market data as an indication of market value, the price paid for future anticipated property value increments shall be excluded.
E. For purposes of determining full cash value the department and county assessors shall use and apply the ratio standard guidelines issued by the department for tax year 1993 in the same manner as they were applied in tax year 1993. This subsection does not apply to property that is valued according to prescribed statutory methods or to property for which values are determined in the year after an appeal pursuant to section 42‑16002.