ARIZONA HOUSE OF REPRESENTATIVES Fifty-fourth Legislature Second Regular Session

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HB 2496: agricultural property classification; guest ranches

Sponsor:  Representative Dunn, LD 13

Committee on Ways & Means

Overview

Includes land and improvements devoted to use as a guest ranch as agricultural real property. Requires the owner to record a deed restriction with the county recorder and file a copy with the county assessor that restricts the property use as a guest ranch for at least 10 years.

History

Current statute defines 12 types of structures, lands, purposes and improvements that are included in agricultural real property (A.R.S. § 42-12151).

Provisions

1. Adds land and improvements specifically devoted to use as a guest ranch to agricultural real property. (Sec. 1)

2. Requires an owner of a guest ranch to record a deed of restriction with the county recorder that restricts that property to a guest ranch for at least 10 years. (Sec. 2)

3. States the use of the property must remain unchanged during the 10-year period or the property will lose the agricultural real property status and the owner will be subject to a penalty equal to the amount of property taxes that would have been levied on the property for the preceding years had it not been valued as agricultural real property. (Sec. 2)

4. Defines guest ranch as an ongoing, commercial and for-profit organization that meets all the following conditions:

a) Provides recreational activities that include horseback riding, hiking, biking or a working cattle ranch experience;

b) Has an organized and supervised horse program on the property with a horse herd that consists of a number of horses equal to or greater than the total number of guest accommodations;

c) Uses at least one permanent structure with running water, sewage disposal and a kitchen.

d) Provides guests with three meals a day.

e) Includes the word Ranch or Rancho in the guest ranch's name. (Sec. 2)

5. Applies retroactively to January 1, 2020. (Sec. 3)

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Initials: VP/BG            Ways & Means

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