Assigned to FIN FOR
COMMITTEE
Assigned to FIN FOR
COMMITTEE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
affordable housing; tax assessment
Purpose
Limits the assessed valuation of affordable housing.
Background
For property tax purposes, a valuation can be issued either by a county assessor or by the Arizona Department of Revenue (DOR), depending on the type of property being assessed (A.R.S. Title 42, Chapters 13 and 14). For locally-assessed property, county assessors must annually determine the full cash value of all properties using DOR's guidelines and aerial photography, applicable DOR records, building permits and other documentary sources, and technology (A.R.S. § 42-13051).
Some types of locally-assessed property have statutory definitions and procedures for valuation. The types of specified, locally-assessed properties are: 1) agricultural property; 2) golf courses; 3) shopping centers; 4) property of manufacturers; 5) common areas; 6) timeshares; and 7) abandoned leased property (A.R.S. Title 42, Chapter 13).
Under current law, counties may sell or transfer real property to provide for affordable housing pursuant to the U.S. Department of Housing and Urban Development guidelines. Such property must then be restricted by regulation as affordable housing for low-income families for as long as feasible, but at least 30 years. As part of the regulation, resale of the affordable housing property is subject to price restrictions (A.R.S. § 11-251.10).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Caps the valuation of community land trust property at the sum of the community land trust's market value and the initial investment basis.
2. Permits DOR to prescribe uniform rules, procedures and formulas for determining and fixing valuation of affordable housing.
3. Defines terms.
4. Becomes effective on the general effective date.
Prepared by Senate Research
February 12, 2018
FB/AF/lb