HB2145 - 561R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 41-826, Arizona Revised Statutes, is amended to read:

START_STATUTE41-826. Permanent Arizona historical society revolving fund

A. A The permanent Arizona historical society revolving fund is established consisting of monies received pursuant to subsection B of this section. both of the following:

B. 1. All monies received by the society from the operation of operating gift shops, book shops, and food service facilities, and from charges for the use of or admission into any of the society's facilities shall be and deposited, pursuant to sections 35-146 and 35-147, into this in the fund.

2. Gifts, grants, donations and contributions to the fund.

C. B. Fund monies shall be spent by the society for both of the following:

1. Enhancing the programs of the society, or operating or improving its facilities.

2. Issuing historical markers for a dude ranch that is designated for inclusion in the Arizona dude ranch heritage trail program established by section 41-867.

D. C. The Arizona historical society shall prepare an annual report which that accounts for all permanent Arizona historical society monies received, from where received and for what purposes such the monies were used during the fiscal year. The report shall include plans for the ensuing fiscal year. The report shall be presented to the legislature during January of each year.

E. D. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

F. E. All monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 2. Section 41-867, Arizona Revised Statutes, is amended to read:

START_STATUTE41-867. Arizona dude ranch heritage trail program; Arizona heritage ranch designation; plaque; Arizona heritage trail; historical marker

A. The Arizona dude ranch heritage trail program is established in the Arizona state parks board to serve as a guide to working dude ranches in this state.

B. The Arizona state parks board shall designate a dude ranch for inclusion in the Arizona dude ranch heritage trail program if all of the following apply:

1. The owner of the dude ranch applies to the Arizona state parks board in a manner determined by the Arizona state parks board.

2. The dude ranch has been in business for at least twenty-five years.

3. The dude ranch consists of at least one thousand contiguous acres that are any of the following:

(a) Private property adjacent to the headquarters.

(b) Leased property adjacent to the headquarters. For the purposes of this subdivision, the lease agreement may be for private or public real property and must be in writing and include riding rights.

4. The dude ranch provides recreational activities that include horseback riding, hiking, biking or a working cattle ranch experience for guests.

5. The dude ranch 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 during the operating season in which guests are present.

6. The dude ranch uses at least one permanent structure that has running water, sewage disposal and a kitchen.

7. The dude ranch provides guests with three meals each day as part of the dude ranch's primary package, commonly referred to as the "American plan".

8. The dude ranch includes the word "ranch" or "rancho" in the ranch's name.

C. The Arizona state parks board shall make a determination on the designation within thirty days after receiving an application pursuant to this section.

D. The Arizona state parks board in cooperation with the largest dude ranch or guest ranch association in this state shall develop indicia and signage that ranches may use to identify and promote the Arizona heritage ranch designation. The applicant shall pay for the cost of designing and creating the plaque.

E. The Arizona state parks board shall allow additions or modifications to a dude ranch with designation as an Arizona heritage ranch if the original character of the dude ranch is preserved.

F. The Arizona dude ranch heritage trail shall consist of dude ranches that are designated as an Arizona heritage ranch pursuant to this section.

G. At the request of a dude ranch that is DESIGNATED for inclusion in the arizona dude ranch heritage trail program pursuant to subsection B of this section, the arizona historical society, in cooperation with the arizona state parks board and the largest dude ranch or guest ranch association in this state, shall issue a historical marker for the dude ranch within two years after the request. END_STATUTE

Sec. 3. Section 42-12002, Arizona Revised Statutes, is amended to read:

START_STATUTE42-12002. Class two property

For purposes of taxation, class two is established consisting of three subclasses:

1. Class two (R) consists of:

(a) Real property and improvements to property that are used for agricultural purposes and that are valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(b) Real property and improvements to property that are primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(c) Real property and improvements to property that are owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that are valued at full cash value.

(d) Real property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.

(e) Real property and improvements to property of a guest ranch that are valued pursuant to meets the REQUIREMENTS prescribed in chapter 13, article 12 of this title, that are not included in class four and that are valued at full cash value.

(f) All other real property and improvements to property, if any, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value.

2. Class two (P) consists of:

(a) Personal property that is used for agricultural purposes and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(b) Personal property that is primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that is not included in class one, three, four, six, seven or eight and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

(c) Personal property that is owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that is valued at full cash value.

(d) Personal property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.

(e) Personal property of a guest ranch that is valued pursuant to meets the REQUIREMENTS prescribed in chapter 13, article 12 of this title and that is not included in class four and that is valued at full cash value.

(f) All other personal property that is not included in class one, three, four, six, seven or eight and that is valued at full cash value.

3. Class two (C) consists of real property, and improvements to real property, that is burdened by a conservation easement that has been created and is currently in effect pursuant to title 33, chapter 2, article 4. END_STATUTE

Sec. 4. Section 42-12004, Arizona Revised Statutes, is amended to read:

START_STATUTE42-12004. Class four property

A. For the purposes of taxation, class four is established consisting of:

1. Real and personal property and improvements to the property that are used for residential purposes, including residential property that is owned in foreclosure by a financial institution, that is not otherwise included in another classification and that is valued at full cash value. The homesite that is included in class four may include:

(a) Up to ten acres on a single parcel of real property on which the residential improvement is located.

(b) More than ten, but not more than forty, acres on a single parcel of real property on which the residential improvement is located if it is zoned exclusively for residential purposes or contains legal restrictions or physical conditions that prevent the division of the parcel. For the purposes of this subdivision, "physical conditions" means topography, mountains, washes, rivers, roads or any other configuration that limits the residential usable land area.

2. Real and personal property and improvements to the property that are used for residential purposes and solely leased or rented, that are not included in class one, two, three, six, seven or eight and that are valued at full cash value.

3. Child care facilities that are licensed under title 36, chapter 7.1 and that are valued at full cash value.

4. Real and personal property and improvements to property that are used to operate nonprofit residential housing facilities that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

5. Real and personal property and improvements that are used to operate licensed residential care institutions or licensed nursing care institutions that provide medical services, nursing services or health-related services and that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

6. Real and personal property consisting of not more than eight rooms of residential property that are leased or rented to transient lodgers, together with furnishing not more than a breakfast meal, by the owner who resides on the property and that is valued at full cash value.

7. Real and personal property that consists of residential dwellings maintained for occupancy by agricultural employees as a condition of employment or as a convenience to the employer, that is not included in class three and that is valued at full cash value. The land associated with these dwellings shall be valued as agricultural land pursuant to chapter 13, article 3 of this title.

8. Real property and improvements to property constituting common areas that are valued pursuant to chapter 13, article 9 of this title.

9. Real and personal property that is defined as timeshare property by section 32-2197 and valued pursuant to chapter 13, article 10 of this title, except for any property used for commercial, industrial or transient occupancy purposes and included in class one to the extent of that use.

10. Real and personal property and improvements that are used for residential purposes and that are leased or rented to lodgers, except for:

(a) Property occupied by the owner of the property as the owner's primary residence and included in class three.

(b) Property used for commercial purposes and included in class one.

11. Low-income multifamily residential rental properties that are valued pursuant to chapter 13, article 13 of this title.

12. Real and personal property and improvements to property of a guest ranch that meets the requirements prescribed in chapter 13, article 12 of this title and that is included in the Arizona dude ranch heritage trail program established by section 41-867 and that are valued at full cash value.

B. Subsection A, paragraphs 4 and 5 of this section do not limit eligibility for exemption from taxation under chapter 11, article 3 of this title. END_STATUTE

Sec. 5. Section 42-13302, Arizona Revised Statutes, is amended to read:

START_STATUTE42-13302. Determining limited value in cases of modifications, omissions and changes

A. In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification:

1. Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section.

2. Property for which a change in physical, objectively verifiable use has occurred on the property since the preceding tax year. For the purposes of this paragraph and section 42-16002: ,

(a) A change in the occupant or classification of a single-family residence is not a change in use, in and of itself.

(b) a CHANGE IN THE CLASSIFICATION OF A GUEST RANCH AS DEFINED IN SECTION 42-13551 IS NOT A CHANGE IN USE, IN AND OF ITSELF.

3. Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total value of the modification is equal to or greater than fifteen percent of the full cash value.

4. Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity.

B. In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels is the same as the total limited property value of the original parcel or parcels. For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification. The new parcel or parcels shall retain the same value-adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section.

C. In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either:

1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2. The total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established pursuant to section 42-13301.

D. In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established as the lower of either:

1. The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2. The limited property value established pursuant to section 42-13301.END_STATUTE

Sec. 6. Section 42-13551, Arizona Revised Statutes, is amended to read:

START_STATUTE42-13551. Definition of guest ranch

For the purposes of this article, "guest ranch" means real property and improvements to property being used as a guest ranch that meets all of the following:

1. Consists of at least one thousand contiguous acres that are any of the following:

(a) Private property adjacent to the headquarters.

2. Provides recreational activities that include horseback riding, hiking, biking or a working cattle ranch experience for guests.

3. 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 during the operating season in which guests are present.

4. Uses at least one permanent structure that has running water, sewage disposal and a kitchen.

5. Provides guests with three meals each day as part of the guest ranch's primary package, commonly referred to as the "American plan".

6. Includes the word "ranch" or "rancho" in the guest ranch's name. END_STATUTE