Official Summary Text
HB2105 - 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. 2105
agricultural
property; inspections; notice
Purpose
Requires the
Arizona Department of Revenue (ADOR) and each county assessor to provide
advance notice of specified property inspections and provide inspection reports
to property owners. Exempts specified agricultural property from on-site
inspections in consecutive years, with exceptions. Allows a county assessor,
during the year following the year in which an on-site inspection is conducted,
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
ADOR to investigate property values and request relevant public or private
records relating to valuations or property taxes and allows ADOR to enter on
and examine any property to determine its full cash value. If the owner or
possessor of property refuses entrance, the Director of ADOR may estimate the
valuation of the property (
A.R.S.
� 42-11053
).
A county
assessor must 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 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
).
There is no
anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1.
Requires
ADOR, when conducting inspections under its property valuation investigation
authority, to:
a)
notify the owner or possessor of the property that an inspection will
occur and provide the date of the inspection; and
b)
provide
a copy of the inspection report to the property owner or possessor of the
property.
2.
Requires
the county assessor, when making an on-site inspection for agricultural
property classification purposes, to:
a)
notify the property owner before an inspection occurs and provide the
date of the inspection; and
b)
provide
a copy of the inspection report to the property owner.
3.
Allows a county assessor to develop a standardized form for on-site
agricultural property inspection reports.
4.
Exempts
agricultural property that meets the criteria for agricultural classification from
on-site inspections in consecutive years, unless:
a)
the property owner files a change in use notice;
b)
the property is split;
c)
there is a change in ownership or lease of the property; or
d)
a
taxable improvement is made to the property.
5.
Specifies that the county assessor is not required to send the
statutorily required property inspection notice by certified mail.
6.
Allows a county assessor, if the assessor classifies a previously
unreported improvement as agricultural property during the year following the
year in which an on-site inspection is conducted, to assess the applicable
property tax on the improvement for the current tax year and any prior year the
improvement existed.
7.
Makes conforming changes.
8.
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 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.
Amendments Adopted by
Committee of the Whole
1.
Replaces the three-year exemption from on-site agricultural property
inspections with an exemption from on-site inspection in consecutive years,
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
HB2105 - 572R - S Ver
Senate Engrossed
House Bill
agricultural
property; inspections; notice
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
HOUSE BILL 2105
AN
ACT
amending sections 42-11053 and 42-12158,
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 42-11053, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-11053.
Investigating property valuations
A. The department shall
:
1.
Investigate property
valuations and any matters relating to property taxes and shall require the
production of any private or public record relating to those valuations or
property taxes.
2. Notify the owner or possessor of
the property that an inspection will occur and provide the date of the
inspection.
The department is not required to provide the
notice required by this paragraph by certified mail.
3. Provide a copy of the inspection
report to the owner or possessor of the property.
B. The director or the director's agent may:
1. Enter on and examine any property in this state
to determine its full cash value. If the owner or possessor of
property refuses entrance to the director or the director's agent, the director
may estimate the valuation of the property.
2. Require any officer whose duties relate to
assessing or collecting taxes to report to the director at the time and in the
manner that the director prescribes.
END_STATUTE
Sec. 2. Section 42-12158, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-12158.
Inspections by county assessor
A.
The county assessor or the
assessor's deputies shall:
1. Make an on-site inspection of twenty-five
percent of the property classified as being used for agricultural purposes each
year.
2. Make an on-site inspection and appraise all
of these properties within every four years.
3. If the county assessor or the assessor's deputy
determines that the property does not meet the criteria for agricultural
classification, notify the property owner pursuant to section 42-12156.
4. Notify the property owner before
an inspection occurs and provide the date of the inspection.
The county assessor is not required to provide the notice required by
this paragraph by certified mail.
5. Provide a copy of the inspection
report to the property owner.
B. A property that meets the criteria
for agricultural classification is not subject to an on-site inspection
in consecutive years pursuant to this section 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. There is a split of the property.
3. There is a change in ownership or
lease of the property.
4. There is a taxable improvement
made to the property.
C. For the purposes of this section,
the county assessor may develop a standardized form for inspection reports.
D. during the
year following the
YEAR in which an on-site inspection is conducted
, 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