AMENDED

FACT SHEET FOR S.B. 1266

property tax; administration; county assessor

Purpose

Allows the county assessor to accept property tax exemption eligibility affidavits electronically and allows a taxpayer to file a notice of claim electronically for the purposes of a property tax error. Requires a receiving entity to provide an acknowledgement of receipt.

Background

Statute requires a taxpayer to file a notice of claim, either personally or by certified mail, if the taxpayer believes that their property has been assessed improperly as a result of a property tax error. The recipient of the notice of claim depends on the entity involved in the alleged valuation or classification error (A.R.S. § 42-16254).

When initially claiming a property tax exemption, a person must appear before the county assessor to make an affidavit as to the person's eligibility. If a personal appearance would create a severe hardship, the county assessor may arrange a mutually satisfactory meeting place to make an eligibility affidavit. In subsequent years the person claiming the exemption may appear before a notary public to make the eligibility affidavit (A.R.S. § 42-11152).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Allows a taxpayer to file a notice of claim electronically, if the taxpayer believes their property has been assessed improperly as a result of a property tax error.

2. Requires a tax officer, if the tax officer accepts electronic notices of claim for a property tax error, to provide an electronic acknowledgment of receipt to the taxpayer.

3. Replaces the requirement for a person claiming a property tax exemption to appear before the county assessor to make an affidavit with a requirement to file a signed eligibility affidavit with the county assessor, under penalty of perjury.

4. Allows the county assessor to accept eligibility affidavits electronically.

5. Requires the county assessor, if the county assessor accepts electronic property tax exemption eligibility affidavits, to provide an acknowledgment of receipt to the person who submitted the affidavit.

6. Transfers administration of rental revenues deposited in the Highway Properties Fund to the applicable county treasurer, rather than the applicable county assessor.

7. Makes technical and conforming changes.

8. Becomes effective on the general effective date.

Amendments Adopted by Committee of the Whole

1. Reinstates the straight line building residual valuation method available to the owner of a shopping center.

2. Requires the county assessor to provide an acknowledgment of receipt to the person who submitted the exemption eligibility affidavit.

3. Requires a tax officer to provide an electronic acknowledgment of receipt to the taxpayer.

4. Makes conforming changes.

Senate Action

FIN 2/9/22 DP 7-3-0

Prepared by Senate Research

February 24, 2022

MG/slp