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REFERENCE TITLE: agricultural property
classification; guest ranches |
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State of
Arizona House of
Representatives Fifty-fourth
Legislature Second Regular
Session 2020 |
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HB 2496 |
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Introduced by Representatives Dunn: Biasiucci, Bolick, Griffin, Pierce, Senator
Kerr |
AN ACT
amending section
42‑12151, Arizona Revised Statutes; amending title 42, chapter 13,
article 3, Arizona Revised Statutes, by adding section 42‑13103; relating
to Agricultural property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-12151, Arizona Revised Statutes, is amended to read:
42-12151. Definition of agricultural real property
In this article, unless the context otherwise requires, "agricultural real property" means real property that is one or more of the following:
1. Cropland in the aggregate of at least twenty gross acres.
2. An aggregate ten or more gross acres of permanent crops.
3. Grazing land with that has a minimum carrying capacity of forty animal units and containing that contains an economically feasible number of animal units.
4. Land and improvements devoted to commercial breeding, raising, boarding or training equine, as defined in section 3‑1201, or equine rescue facilities registered with the Arizona department of agriculture pursuant to section 3‑1350.
5. Land and improvements devoted to high density use for producing commodities.
6. Land and improvements devoted to use in processing cotton necessary for marketing.
7. Land and improvements devoted to use in processing wine grapes for marketing.
8. Land and improvements devoted to use in processing citrus for marketing.
9. Land and improvements devoted to use as fruit or vegetable commodity packing plants that do not cut or otherwise physically alter the produce.
10. Land and improvements owned by a dairy cooperative devoted to high density use in producing, transporting, receiving, processing, storing, marketing and selling milk and manufactured milk products without the presence of any animal units on the land.
11. Land of at least five acres and improvements devoted to algaculture. For the purposes of this paragraph "algaculture" means the controlled propagation, growth and harvest of algae.
12. Land and improvements devoted to agritourism as defined in section 3‑111.
13. Land and improvements devoted to
use as a guest ranch as defined in section 42‑13103.
Sec. 2. Title 42, chapter 13, article 3, Arizona Revised Statutes, is amended by adding section 42-13103, to read:
42-13103. Deed restriction on
guest ranch use; violation; penalty; definition
A. As a condition for valuation under
this article, the owner of a guest ranch shall record a deed restriction with
the county recorder and file a copy of the restriction with the county assessor
that restricts the property to use as a guest ranch for at least ten
years. The deed restriction must be refiled as necessary to ensure
that the deed restriction always applies for at least ten years.
B. The valuation of a guest ranch
under this section constitutes a covenant between the county assessor and the
owner of the guest ranch that the use of the property will remain unchanged for
the duration of the deed restriction.
C. The county assessor shall maintain
a record of the value of the property determined under this article and the
value of the property if it had not been determined under this
article. The assessor shall maintain the record for at least ten
years for use in computing the penalty under subsection D of this section if
the property is converted to a different use in violation of the covenant.
D. If the property is converted to a
different use in violation of the covenant, the county assessor shall add to
the tax levied against the property on the next tax roll a penalty equal to the
difference between the total amount of property taxes that would have been
levied on the property for the preceding ten years or the period of time the
property was valued under this section, whichever period is shorter, if the
property had not been valued under this section and the property taxes that
were actually paid for the same period. The penalty due under this
subsection shall be paid before completion of the next property tax roll and is
enforceable and subject to the same penalties and interest as if the penalty
were a tax levied against the property.
E. For the purposes of this Section,
"guest ranch" means an ongoing, commercial for-profit organization
that meets all of the following:
1. Provides recreational activities
that include horseback riding, hiking, biking or a working cattle ranch
experience for guests.
2. Has an organized and supervised
horse program on the property with a horse herd that consists of a number of
horses that is equal to or greater than the total number of guest
accommodations.
3. Uses at least one permanent
structure that has running water, sewage disposal and a kitchen.
4. Provides guests with three meals
each day as part of the guest ranch's primary package, commonly referred to as
the "American Plan".
5. Includes the word "ranch" or "rancho" in the guest ranch's name.
Sec. 3. Retroactivity
This act applies retroactively to tax years beginning from and
after December 31, 2019.