State SealARIZONA HOUSE OF REPRESENTATIVES

 

SB 1248: property taxes; valuation; property modifications

PRIME SPONSOR: Senator Leach, LD 11

BILL STATUS: House Engrossed

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☒ Fiscal NoteEstablishes a 15% threshold when applying Limited Property Value (LPV) to modified properties.

History

The Department of Revenue (DOR) exercises general guidance to county assessors in administering the property tax laws to ensure that all property is uniformly valued for property tax purposes (A.R.S. §42-13002). With the passing of Proposition 117 Property taxes are based on the LPV and limited to an annual increase of 5% with some exceptions (A.R.S. §41-13301).

DOR has established guidelines for applying LPV with two rules: Rule A and Rule B. Rule A applies to properties that have not had significant modifications made and caps the LPV increase at 5% of the previous year's LPV. Rule B applies to properties that have changed in value significantly after structural or use modifications permitting the county assessors to establish the LPV at a level or percentage of full cash value (AZDOR.gov).

Provisions

1.       Specifies that the threshold for applying Rule B is when a modification to a property results in a 15% change in its full cash value. (Sec. 1) 

2.       Makes technical changes. (Sec. 1)

 

 

 

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Fifty-fourth Legislature                   SB 1248

First Regular Session                        Version 3: House Engrossed

 

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