ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature Second Regular Session
	Senate: FIN DP 10-0-0-0 | 3rd Read 28-0-2-0

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SB 1267: property; classification; primary residence

Sponsor: Senator Livingston, LD 22

Committee on Ways & Means

Overview

Requires that, for the purposes of determining limited property value, a change in use be physical and objectively verifiable. States that a change of occupant or classification of a single-family residence does not constitute a change in use. Establishes that for a property to qualify as class three or class four property, it must be used for residential purposes.

History

Class three property is comprised of real and personal property and improvements that are:

1. used as the owner's primary residence;

2. occupied by a relative of the owner and is used as their primary residence; and

3. occupied by the owner as their primary residence and is also for lease or rent to lodgers (A.R.S. § 42-12003).

The current assessment ratio for class three property is 10% (A.R.S. § 42-15003).

Class four property is comprised of real and personal property that is not used as the primary residence of the owner and residential property that is leased or rented (A.R.S. § 42-12004). The current assessment ratio for class four property is 10% (A.R.S. § 42-15004).

Provisions

1. Revises the definition of residential property to state that the property must be the owner's primary residence and not just used as the owner's primary residence. (Sec. 1)

2. States that class three property must be used for residential purposes and must be occupied by the owner, or the owner's relative, as their primary residence. (Sec. 2)

3. States that class four property must be used for residential purposes. (Sec. 3)

4. Requires a property's change of use to be physical and objectively verifiable. (Sec. 6)

5. Prohibits a change in the occupant or classification of a single-family residence from constituting a change in use. (Sec. 6)

6. Makes technical and conforming changes. (Sec. 2, 3, 4, 5, 7, 8)

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10.                   SB 1267

11. Initials VP/ES        Page 0 Ways & Means

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