State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2114: county real estate; appraisals

PRIME SPONSOR: Representative Griffin, LD 14

BILL STATUS: Senate Engrossed

                                Senate 3rd Read: 30-0-0-0

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteSpecifies that county property for sale or lease must be appraised by a licensed appraiser.

History

The powers of a county are exercised only by the Board of Supervisors (Board) or the county's agents and the Board has the ability to make orders for the disposition or use of its property as the interests of the inhabitants of the county require (A.R.S. §11-201).  The Board is also permitted to sell at a public auction, given certain requirements, real property that is appraised by a qualified independent fee appraiser who has an office located in this state (A.R.S. §11-251).

Each county is required to create a County Flood Control District (District) to include and govern its area of jurisdiction.  The Board is the board of directors of the District (A.R.S. §48-3602).  Each District is a political taxing subdivision of this state and has all the powers, immunities and privileges that are granted to municipal corporations, including immunity of its property and bonds from taxation (A.R.S. §48-3603).

Any real estate appraisals and appraisal reviews on real property in this state must be performed by a registered, licensed or certified individual pursuant to statute (A.R.S. §32-3603).  In order to be a state-licensed appraiser, an individual must meet all qualifications outlined in statute and achieve a passing grade on the national exam approved by the appraiser qualifications board (A.R.S. §32-3613).

Provisions

1.       Stipulates that county property for sale or lease must have the property appraised by a licensed appraiser, pursuant to statute. (Sec. 1, 2)

2.       Specifies that the appraiser must establish a market value for the property, as defined in statute. (Sec. 1)

3.       Prescribes that the minimum acceptable bid for the purchase of the property must be at least 90% of the market value, except if the property has no market value or a net value of $10,000 or less, the value of the property may be justified by a market analysis based on comparable sales. (Sec. 1)

4.       States that an appraisal is not required for a building that has a rental value of $5,000 or less per month if justified by a market analysis of comparable sales or rentals. (Sec. 2)

5.       Adds any special district with taxing authority, a public school, a community college or a university to whom a District can sell property. (Sec. 3)

6.       Removes the definition of political subdivision as it relates to flood control districts selling property. (Sec. 3)

7.       Allows the Board to lease properties without public auction under the following conditions:

a.       The Board posts a notice for at least fifteen days before the execution of the lease in a conspicuous place on the affected property that summarizes the proposed lease and gives instruction on how to request that the proposed action be submitted to public auction.

b.       The Board posts a notice on their website for at least fifteen days before the execution of the lease in a conspicuous place on the affected property that summarizes the proposed lease and gives instruction on how to request that the proposed action be submitted to public auction.

c.        The Board publishes in the local newspaper at the beginning of the fifteen-day posting period a summary of the proposed lease and gives instruction on how to request that the proposed action be submitted to public auction.

d.       The Board creates a process that allows an interested person, in writing, to request the proposed lease be submitted to public auction.  Specifies that the Board must follow the procedures set forth in this Act if a person, within the fifteen-day posting period, requests the proposed lease be submitted to public auction.

e.       The rental value of the property is less than $5,000 per month. (Sec. 2)

8.       Makes technical and conforming changes. (Sec. 1, 2, 3)

Senate Amendments

1.       Makes technical changes (Rules Committee). (Sec. 2)

 

 

 

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Fifty-fourth Legislature                               HB 2114

First Regular Session                    Version 4: Senate Engrossed

 

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