Bill
Number: S.B. 1490
Mesnard
Floor Amendment
Reference
to: printed bill
Amendment
drafted by: Leg Council
FLOOR
AMENDMENT EXPLANATION
1. Restructures
the classification of rental property based on the total number of days rented
in a calendar year and classifies rental property as:
a) class
1 if the property is rented to lodgers for more than 120 days; or
b) class
4 if the property is rented to lodgers for 120 days or less.
2. Authorizes
the Arizona Department of Revenue (ADOR) to prescribe guidelines for a property
with multiples uses.
3. Excludes,
from classification as class 1 property, property for which the owner attests
to the county assessor that the property is owner occupied for at least 60 days
in a calendar year.
4. Requires
an owner to notify the county assessor if the owner will no longer meet the
60-day occupancy requirement.
5. Modifies
the class 4 classification to be for periods of less than 30 days, rather than
30 days or more.
6. Modifies
the classifications to be applicable to property rented to lodgers, rather than
leased or rented to lodgers.
7. Applies
to tax years beginning January 1, 2021.
8. Makes
technical and conforming changes.
Page
1, between lines 1 and 2, insert:
"Section 1. Section 42-11054, Arizona Revised
Statutes, is amended to read:
START_STATUTE42-11054. Standard
appraisal methods and techniques
A. Subject
to subsection B of this section, the department shall:
1. Prescribe
guidelines for applying standard appraisal methods and techniques, including guidelines for a property with multiple uses, that
shall be used by the department and county assessors in determining the
valuation of property.
2. Prepare
and maintain manuals and other necessary guidelines, consistent with this
section, reflecting the standard methods and techniques to perpetuate a current
inventory of taxable property and the valuation of that property.
B. Before
they are adopted, the department shall submit each substantive proposed
guideline, table and manual that is developed, amended or otherwise modified
from and after December 31, 2006 to the joint legislative oversight committee
on property tax assessment and appeals. The department shall not finally
adopt, amend or otherwise modify a substantive guideline, table or manual for
at least thirty days after submitting the measure to the committee. The
committee may hold one or more informational hearings on the proposed measure
within thirty days after submission. In adopting, amending or
modifying the measure, the department shall consider the
committee's comments. If the committee fails to hold a hearing
within thirty days after submission, the department may adopt, amend or modify
the measure without further consideration.
C. In applying
prescribed standard appraisal methods and techniques:
1. Current usage shall
be included in the formula for reaching a determination of full cash value.
2. Solar
energy devices, as defined in section 44‑1761, grid‑tied
photovoltaic systems and any other device or system designed to produce solar
energy primarily for on-site consumption are considered to add no value to the
property on which such a device or system is installed.
3. If
characterized as personal property, subject to any applicable constitutional
exemption from taxation, solar energy devices, as defined in section 44‑1761,
grid‑tied photovoltaic systems and any other device or system designed to
produce solar energy primarily for on‑site consumption shall be valued as
provided in section 42‑13056.
4. Energy
efficient building components, renewable energy equipment and combined heat and
power systems are considered to add no value to the property, if the property
owner provides the county assessor with documentation of all elements that
qualify pursuant to this paragraph, including documents showing actual
acquisition and installation costs. The documentation must be submitted to the
county assessor not later than six months before the notice of full cash value
is issued for the initial evaluation year pursuant to section 42‑15101
or, if the component is added after September 30 of the preceding year, not
later than March 31 of the initial valuation year. For the purposes of this
paragraph:
(a) "Combined
heat and power system" means a system that generates electricity or
mechanical power and useful thermal energy in a single, integrated system such
that the useful power output of the facility plus one‑half the useful
thermal output during any twelve-month period is not less than 42.5 percent of
the total energy input of fuel to the facility.
(b) "Energy
efficient building components" means high performance sustainable building
components installed so that the buildings or building components meet or
exceed the energy efficiencies prescribed by the United States environmental
protection agency energy star program or by a leadership in energy and
environmental design green building rating standard developed by the United
States green building council, or an equivalent green building standard, or
that are at least fifteen percent more energy efficient than the international
energy conservation code in effect at the time of building permit issuance.
(c) "Renewable
energy equipment" means equipment that is used to produce energy primarily
for on-site consumption from renewable resources, including wind, forest
thinnings, agricultural waste, biogas, biomass, geothermal, low-impact
hydropower and solar energy not included under paragraph 2 of this subsection.
D. If
the methods and techniques prescribe using market data as an indication of
market value, the price paid for future anticipated property value increments
shall be excluded.
E. For
the purposes of determining full cash value the department and county assessors
shall use and apply the ratio standard guidelines issued by the department for
tax year 1993 in the same manner as they were applied in tax year
1993. This subsection does not apply to property that is valued
according to prescribed statutory methods or to property for which values are
determined in the year after an appeal pursuant to section 42‑16002.END_STATUTE"
Renumber
to conform
Page
2, line 7, after "are" strike remainder of line
Line
8, strike "residential purposes, that are solely leased or"
Line
9, after "days" insert "for
a total of more than one hundred twenty days in a calendar year"
Line
12, after "and" insert "that"
Between
lines 12 and 13, insert:
"(b) Property that the owner of the
property attests to the county assessor that the owner occupies the property
for at least sixty days in a calendar year. If the owner of the property will
no longer meet the sixty‑day occupancy requirement, the owner of the
property shall notify the county assessor."
Reletter
to conform
Page 2, line 13, strike "leased or"; after "and"
insert "that is"
Page 3, line 25, strike "solely leased or"
Line
26, after "of" insert "less
than"; strike "or more" insert "for either a total of one hundred twenty days or less in a calendar
year or a total of more than one hundred twenty days in a calendar year and the
owner of the property occupies the property for at least sixty days in a
calendar year"
Line
30, after "one" insert "pursuant to section 42‑12001,
paragraph 15"
After
line 33, insert:
"Sec. 4. Applicability
This act applies to tax years
beginning from and after December 31, 2020."
Amend title to conform