|
REFERENCE TITLE: property taxes; valuation; property modifications |
|
State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
|
|
SB 1248 |
|
|
|
Introduced by Senator Leach
|
AN ACT
amending section 42‑13302, Arizona Revised Statutes; relating to property valuation.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-13302, Arizona Revised Statutes, is amended to read:
42-13302. Determining limited value in cases of modifications, omissions and changes; statute of limitations
A. In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification:
1. Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section.
2. Property for which a change in use property classification in accordance with chapter 12 of this title has occurred since the preceding tax year.
3. Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total added value of the modification, net of any destruction or demolition, is equal to or greater than twenty percent of the full cash value in the current tax year, except that a modification for the purpose of tenant improvements, deferred maintenance, repair or replacement of an improvement or compliance with current building codes since the preceding valuation year is excluded for the calculation under this subsection.
4. Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity or that result in a total overall full cash value change that is equal to or less than twenty percent of the split or consolidated parcels.
B. In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels shall be the same as the total limited property value of the original parcel or parcels. For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification when the total value increase is equal to or greater than twenty percent of the full cash value in the preceding valuation year. The new parcel or parcels shall retain the same value‑adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section.
C. In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either:
1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.
2. The total limited value for the original parcel or parcels as determined under section 42‑13301, and in the following valuation year, the limited property value shall be established pursuant to section 42‑13301.
D. In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42‑13301, and in the following valuation year, the limited property value shall be established as the lower of either:
1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.
2. The limited property value established pursuant to section 42‑13301.
E. The statute of limitations for this section to apply is three years after a modification, omission or change.