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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
county real estate; appraisals
Purpose
Outlines requirements for appraisals of real property, land or buildings sold or leased by a county and for a county to lease certain land and buildings without a public auction.
Background
Statute allows a county Board of Supervisors (BOS) to sell county property or lease county land or buildings at public auction to the highest bidder after the value is determined by appraisal. The appraisal for the value of real property sold by the county BOS must be conducted by a qualified, independent fee appraiser with an office located in Arizona. The appraisal for the rental valuation of any land or buildings leased by the county BOS must be conducted by an experienced appraiser.
An appraiser must establish a minimum price at which the county BOS may sell or lease the property, that is at least 90 percent of the appraised value or rental value. The appointment of an appraiser is not required to determine the rental value of any land or building that is valued at less than $5,000, as determined by a market analysis based on comparable sales. Notice of a proposed lease must be given by publication once a week for four consecutive weeks in a newspaper of general circulation in the county and must state all material conditions of the proposed lease and the day the auction will be held (A.R.S. §§ 11-251 and 11-256).
The Superintendent of
the Department of Financial Institutions (Superintendent) must prescribe
standards for professional appraisals and prescribe criteria for the
certification, licensing and registration of appraisers (A.R.S.
§ 32-3605). All real estate appraisals on real property must be performed
by individuals who are registered, licensed or certified by the Superintendent
(A.R.S.
§ 32-3603).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a county BOS to use an appraiser licensed or certified by the Superintendent to appraise:
a) real property sold by the county BOS at public auction; and
b) land or buildings leased or subleased by the county BOS at public action.
2. Requires the appraiser to determine the market value for county property sold at public auction.
3. Allows the value of a county property proposed for sale that has no market value or a net value of $10,000 or less to be justified by a market analysis based on comparable sales, rather than an appraisal.
4. Specifies that an appraisal is not required for the lease of county land or buildings that have a rental value of $5,000 or less per month, rather than a total value of $5,000, as justified by a market analysis based on comparable sales or rentals.
5. Allows a county BOS to lease properties without a public auction if the rental value of the property is less than $5,000 per month and the county BOS:
a) posts a notice for at least 15 days on the affected property summarizing the proposed lease and providing information on the process for a person to request a public auction;
b) posts a notice for at least 15 days on the county BOS website specifying the affected property, summarizing the proposed lease and providing information on the process for a person to request a public auction; and
c) publishes a notice in a local newspaper at the start of the 15-day posting period summarizing the proposed lease and providing information on the process for a person to request a public auction.
6. Requires the county BOS to hold a public auction to lease or sublease county land or buildings with a rental value of less than $5,000 if a person requests that the proposed lease be submitted to public auction within the 15-day posting period.
7. Allows a flood control district to sell property without adhering to statutory requirements for invitation for bids and public notification if the property is sold to any special district with taxing authority and certain criteria are met.
8. Allows flood control districts to use a licensed appraiser, in addition to a certified appraiser, to determine the fair market value of land sold to the state or a political subdivision, special taxing district, public school, community college or university.
9. Makes technical and conforming changes.
10. Effective on the general effective date.
House Action
GOV 2/14/19 DPA 10-0-0-1
3rd Read 2/26/19 58-2-0
Prepared by Senate Research
March 7, 2019
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