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REFERENCE TITLE: assessed valuation; class one property |
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State of Arizona Senate Fifty-sixth Legislature First Regular Session 2023
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SB 1276 |
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Introduced by Senator Mesnard
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An Act
amending sections 42-13054 and 42-15001, Arizona Revised Statutes; relating to property tax.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-13054, Arizona Revised Statutes, is amended to read:
42-13054. Taxable value of personal property; depreciated values of personal property in class one, class two (P) and class six
A. The taxable value of personal property that is valued by the county assessor is the result of acquisition cost less any appropriate depreciation as prescribed by tables adopted by the department. The taxable value shall not exceed the market value.
B. Except as provided in subsection C of this section and notwithstanding any other statute, the assessor shall adjust the depreciation schedules prescribed by the department as follows to determine the valuation of personal property:
1. For personal property that is initially classified during tax year 1994 through tax year 2007 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42-12001 and personal property that is initially classified during tax year 1995 through tax year 2007 as class two (P) pursuant to section 42-12002:
(a) For the first tax year of assessment, the assessor shall use thirty-five percent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use fifty-one percent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use sixty-seven percent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use eighty-three percent of the scheduled depreciated value.
(e) For the fifth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
2. For personal property that is initially classified during tax year 2008 through tax year 2011 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42-12001 and personal property that is initially classified during tax year 2008 through tax year 2011 as class two (P) pursuant to section 42-12002:
(a) For the first tax year of assessment, the assessor shall use thirty percent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use forty-six percent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use sixty-two percent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use seventy-eight percent of the scheduled depreciated value.
(e) For the fifth tax year of assessment, the assessor shall use ninety-four percent of the scheduled depreciated value.
(f) For the sixth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
3. For personal property that is initially classified during tax year 2012 through tax year 2021 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42-12001, personal property that is initially classified during tax year 2012 through tax year 2021 as class two (P) pursuant to section 42-12002 and personal property that is acquired during tax year 2017 through tax year 2021 and initially classified during tax year 2018 through tax year 2021 as class six pursuant to section 42-12006, paragraph 2 or 3:
(a) For the first tax year of assessment, the assessor shall use twenty-five percent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use forty-one percent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use fifty-seven percent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use seventy-three percent of the scheduled depreciated value.
(e) For the fifth tax year of assessment, the assessor shall use eighty-nine percent of the scheduled depreciated value.
(f) For the sixth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
4. NOtwithstanding paragraphs 1, 2 and 3 of this subsection, for personal property that is initially classified before tax year 2022 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42-12001, personal property that is initially classified before tax year 2022 as class two (P) pursuant to section 42-12002 and personal property that was acquired BEFORE tax year 2022 and initially classified BEFORE tax year 2022 as class six pursuant to section 42-12006, paragraph 2 or 3:
(a) For the second tax year of assessment, the assessor shall use twenty-six percent of the scheduled depreciated value.
(b) For the third tax year of assessment, the assessor shall use forty-two percent of the scheduled depreciated value.
(c) For the fourth tax year of assessment, the assessor shall use fifty-eight percent of the scheduled depreciated value.
(d) For the fifth tax year of assessment, the assessor shall use seventy-four percent of the scheduled depreciated value.
(e) For the sixth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
4. 5. For personal property that is initially classified during or after tax year 2022 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42-12001, personal property that is initially classified during or after tax year 2022 as class two (P) pursuant to section 42-12002 and personal property that is acquired during or after tax year 2022 and initially classified during or after tax year 2022 as class six pursuant to section 42-12006, paragraph 2 or 3, the assessor shall use a valuation factor of two and one-half percent.
C. The additional depreciation prescribed in subsection B of this section:
1. Does not apply to any property valued by the department.
2. Shall not reduce the valuation below the minimum value prescribed by the department for property in use.
Sec. 2. Section 42-15001, Arizona Revised Statutes, is amended to read:
42-15001. Assessed valuation of class one property
The assessed valuation of class one property described in section 42-12001 is the following percentage of its full cash value or limited valuation, as applicable:
1. Twenty-five percent through December 31, 2005.
2. Twenty-four and one-half percent beginning from and after December 31, 2005 through December 31, 2006.
3. Twenty-four percent beginning from and after December 31, 2006 through December 31, 2007.
4. Twenty-three percent beginning from and after December 31, 2007 through December 31, 2008.
5. Twenty-two percent beginning from and after December 31, 2008 through December 31, 2009.
6. Twenty-one percent beginning from and after December 31, 2009 through December 31, 2010.
7. Twenty percent beginning from and after December 31, 2010 through December 31, 2012.
8. Nineteen and one-half percent beginning from and after December 31, 2012 through December 31, 2013.
9. Nineteen percent beginning from and after December 31, 2013 through December 31, 2014.
10. Eighteen and one-half percent beginning from and after December 31, 2014 through December 31, 2015.
11. Eighteen percent beginning from and after December 31, 2015 through December 31, 2021.
12. Seventeen and one-half percent beginning from and after December 31, 2021 through December 31, 2022.
13. Seventeen percent beginning from and after December 31, 2022 through December 31, 2023.
14. Sixteen and one-half percent beginning from and after December 31, 2023 through December 31, 2024.
15. Sixteen percent beginning from and after December 31, 2024 through December 31, 2025.
16. Fifteen and one-half percent beginning from and after December 31, 2025 through December 31, 2026.
17. 15. Fifteen percent beginning from and after December 31, 2026 2024.
Sec. 3. Applicability
This act applies to tax years beginning from and after December 31, 2023.