Official Summary Text
HB2104 - 572R - Senate Fact Sheet
Assigned to
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PASSED BY COW
ARIZONA STATE SENATE
Fifty-Seventh
Legislature, Second Regular Session
AMENDED
FACT SHEET FOR
H.B. 2104
agricultural
property; classifications; inspection
Purpose
Prohibits a county assessor from reclassifying or conducting an on-site
inspection of agricultural property for three years after a property owner
prevails in a property tax appeal, unless there is a change in use or ownership,
a property split or a taxable improvement and allows a county assessor, during
the three-year exemption period, to assess the applicable property tax on a
previously unreported taxable improvement if the county assessor classifies the
improvement as agricultural property.
Background
Statute requires each county assessor to conduct on-site inspections of
25 percent of agricultural properties each year, ensuring that every
agricultural property is reviewed and appraised at least once every four years.
If, during inspection, a property is found not to qualify for agricultural
property tax classification, the owner must be notified by certified mail of
the reason for reclassifying the property and include information for the
property owner to appeal the reclassification (A.R.S. ��
42-12158
and
42-12156
).
A county assessor must notify a property owner whether an agricultural
classification has been approved or disapproved by the time the assessor next
mails the property's notice of valuation. If the agricultural classification is
disapproved, the assessor must notify the owner of the reason for disapproval
within 120 days of the application and the owner may appeal the decision of the
assessor (
A.R.S.
� 42-12155
).
A person that
disagrees with the valuation or legal classification of the person's real
property may file a petition with the county assessor appealing the county
assessor's noticed valuation or recommended classification of the property. If
the county assessor denies a petition and if a county board of equalization has
been established in the county, the petitioner may appeal the assessor's
decision to the county board within 25 days after the assessor's decision was
mailed to the petitioner. In evaluating the petition, the county board must
either grant or refuse the request of the petitioner within 10 days after a
hearing on the petition has been held. If the county board of supervisors makes
any changes to valuations or legal classifications ordered by the county board,
the county board of supervisors must add up on the roll the entries of the
valuation of each description and class of property and the total valuations
and enter all totals on the tax roll. A property owner who is dissatisfied with
the valuation or classification of the property as determined by a county board
or a petitioner whose petition is denied by the county board may appeal
directly to the court within 60 days after the date of mailing of the decision
or by December 15, whichever is later. If the county board orders the valuation
of any property to be reduced, the county assessor or the Arizona Department of
Revenue may appeal the decision to court (
A.R.S. Title 42, Chapter 16,
Article 3
).
There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1.
Prohibits,
if a property owner prevails in a property tax appeal, a county assessor from
conducting an on-site inspection or reclassifying agricultural property for three
years after the year in which the appeal decision is rendered, unless one of
the following occurs:
a)
the property owner files a change in use notice;
b)
a split of the property;
c)
a change in ownership or lease of the property; or
d)
a
taxable improvement is made to the property.
2.
Allows
a county assessor, if the assessor classifies a previously unreported
improvement as agricultural property during the three-year exemption period, to
assess the applicable property tax on the improvement for the current tax year
and any prior year the improvement existed.
3.
Becomes effective on the general effective date.
Amendments
Adopted by Committee
1.
Allows
a county assessor, if the assessor classifies a previously unreported
improvement as agricultural property during the four-year exemption period, to
assess the applicable property tax on the improvement for the current tax year
and any prior year the improvement existed.
Amendments
Adopted by Committee of the Whole
1.
Reduces,
from four years to three years, the period during which a county assessor is
prohibited from conducting an on-site inspection or reclassifying agricultural
property after a property owner prevails in a property tax appeal, unless there
is a change in use, a change in ownership, a property split or a taxable
improvement.
2.
Makes
conforming changes.
House Action
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Senate
Action
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Prepared by
Senate Research
June 9, 2026
MG/hk
Current Bill Text
Read the full stored bill text
Chapter 0244 - 572R - S Ver of HB2104
Senate Engrossed
House Bill
agricultural
property; classification; inspection
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 244
HOUSE BILL 2104
AN
ACT
amending section 42-12155, Arizona
Revised Statutes; relating to agricultural property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-12155, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-12155.
Notice of approval or disapproval; appeal
A. The county assessor shall notify the property
owner whether the assessor has approved or disapproved the agricultural
classification of the property on or before the date on which the assessor next
mails the owner the notice of valuation for the property.
B. If the assessor disapproved the agricultural
classification, the assessor shall notify the owner of the reason for
disapproval within one hundred twenty days of the application.
C. The owner may appeal the decision of the assessor
as prescribed by chapter 16, article 2, 5 or 6 of this title.
D. If the owner prevails in an appeal
under chapter 16, article 5 of this title, the county assessor may not
reclassify agricultural property or conduct an on-site inspection
pursuant to section 42-12158 for three years after the year in which the
appeal decision is rendered unless one of the following occurs:
1. The property owner files A change
in the use notice pursuant to section 42-12156, subsection A.
2. A split of the property.
3. A change in ownership or lease of
the property.
4. A taxable improvement is made to
the property.
E. during the three-year
period prescribed by subsection D of this section, if the county
assessor classifies a previously unreported taxable improvement as agricultural
property, the county assessor may assess the applicable property tax on the
improvement for the current tax year and any prior tax year in which the
improvement existed.
END_STATUTE
APPROVED BY THE GOVERNOR JUNE 22, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 22, 2026.