ARIZONA HOUSE OF REPRESENTATIVES Fifty-sixth Legislature First Regular Session
	Senate: FIN DP 4-3-0-0 | 3rd Read 16-12-2-0

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SB 1276: assessed valuation; class one property

Sponsor: Senator Mesnard, LD 13

Committee on Ways & Means

Overview

Modifies the depreciation schedule for specific categories of Class 1, Class 2 (P) and Class 6 personal property initially classified before Tax Year (TY) 2022 and accelerates the reduction of the assessment ratio of Class 1 real and personal property.

History

Class 1 property consists of properties of mining, telecommunication companies, utilities, standing timber, airport fuel delivery, oil and gas production, pipelines, shopping centers, golf courses and most other commercial uses (A.R.S. § 42-12001). The assessed valuation of Class 1 property is currently being phased down over four years from 17% of its full cash value or limited valuation in TY23 to 15% in TY27. (A.R.S. § 42-15001)

Provisions

1. Accelerates the depreciation for specific categories of Class 1, Class 2 (P) and Class 6 personal property initially classified before TY22 to:

a) 26% of the scheduled depreciated value  for the second tax year of assessment;

b) 42% of the scheduled depreciated value  for the third tax year of assessment;

c) 58% of the scheduled depreciated value  for the fourth tax year of assessment;

d) 74% of the scheduled depreciated value  for the fifth tax year of assessment; and

e) The scheduled depreciated value as prescribed by the Department  of Revenue's guidelines for the sixth and subsequent tax years of assessment. (Sec. 1)

2. Accelerates the reduction of the assessment ratio of Class 1 real and personal property from 17% in TY23 to 16% in TY24 and to 15% beginning in TY25. (Sec. 2)

3. Makes the bill effective beginning in TY24. (Sec. 3)

4. Makes conforming changes. (Sec. 1, 2)

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8.                   SB 1276

9. Initials VP  Page 0 Ways & Means

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