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Chapter 0048 - 572R - H Ver of HB2173
House Engrossed
property tax errors;
electronic communications
State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026
CHAPTER 48
HOUSE BILL 2173
AN
ACT
amending sections 42-16252 and 42-16254,
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 42-16252, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-16252.
Notice of proposed correction; response; petition for review;
appeal; electronic communication
A. Subject to the limitations and conditions
prescribed by this article, if a tax officer determines that any real or
personal property has been assessed improperly as a result of a property tax
error, the tax officer shall send the taxpayer a notice of proposed correction
at the taxpayer's last known address by:
1. Certified mail, return receipt requested, if
correction of the error results in an increase in the full cash value or change
in legal classification of the property.
2. First class mail or, at the taxpayer's written
request, delivery by common carrier or electronic transmittal, if correction of
the error does not result in an increase in the valuation of the property.
B. The notice shall:
1. Be in a form prescribed by the department.
2. Clearly identify the subject property by tax
parcel number or tax roll number and the year or years for which the correction
is proposed.
3. Explain the error, the reasons for the error and
the proposed correction of the error.
4. Inform the taxpayer of the procedure and
deadlines for appealing all or part of the proposed determination before the
tax roll is corrected.
C. Within thirty days after receiving a notice of
proposed correction, the taxpayer may file a written response to the tax
officer that sent the notice to either consent to or dispute the proposed
correction of the error and to state the grounds for disputing the
correction. A failure to file a written response within thirty days
constitutes consent to the proposed correction.� A taxpayer may file a request
for an extension of time within thirty days after receiving the notice of proposed
correction. The extension of time may not exceed thirty
days. If an extension is granted, any response that is not filed
within the extended due date constitutes consent to the proposed correction.
D. The taxpayer may appeal any valuation or legal
classification issue that arises from the proposed correction as provided in
this section.
E. If the taxpayer consents to the proposed
correction, or consents to the proposed correction but disputes the proposed
valuation or legal classification as provided on the form prescribed by the
department, the tax roll shall be promptly corrected to allow property taxes to
be levied and collected in all subsequent tax years, but no additional tax,
interest or penalty may be imposed for the current tax year or any tax year
preceding the date of the notice of proposed correction.
F. If the taxpayer disputes the proposed correction
or the proposed valuation or legal classification, the tax officer shall meet
with the taxpayer or the taxpayer's representative in any case in which the
taxpayer has timely filed a written response to discuss the proposed
correction. If after the meeting the tax officer and the taxpayer
reach an agreement on all or part of the proposed correction, the tax officer
and the taxpayer shall each sign an agreement and the tax roll must be promptly
corrected to the extent agreed on.
G. If after the meeting the parties fail to agree on
all or part of the proposed correction, the tax officer shall serve a notice on
the taxpayer by certified mail within thirty days after the meeting date
advising the taxpayer that the tax roll will be corrected to the extent agreed
on.� The taxpayer may file a petition on a form prescribed by the department
with the board of equalization within thirty days after the date of the notice
or it is barred. On receiving the petition, the board shall hold a
hearing on the disputed issues in the proposed correction within thirty days
and shall issue a written decision pursuant to the board's rules.
H. A party that is dissatisfied with the decision of
the board may appeal the decision to court within sixty days after the date the
board's decision is mailed, but any additional taxes that are determined to be
due must be timely paid before delinquency for the court to retain jurisdiction
of the matter.
I. The tax officer may accept an
electronic response to a notice of proposed correction from a taxpayer.� If the
taxpayer elects to submit the response electronically, the tax officer shall
provide an acknowledgment or response of receipt to the taxpayer and may
provide related communications electronically, except for any notice that is
required to be served by certified mail pursuant to subsection G of this
section.� The time limits and procedural requirements that apply to written
communications under this section apply to electronic communications allowed
under this subsection.
END_STATUTE
Sec. 2. Section 42-16254, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-16254.
Notice of claim; response; petition for review; appeal;
electronic communication
A. If a taxpayer believes that the taxpayer's
property has been assessed improperly as a result of a property tax error, the
taxpayer shall file a notice of claim with the appropriate tax officer, either
personally, electronically or by certified mail, as follows:
1. If the alleged error concerns the valuation or
classification of property by the county assessor, the notice shall be filed
with the assessor. On receiving the notice, the assessor shall
immediately transmit a copy to the department.
2. If the alleged error concerns the valuation or
classification of property by the department, the notice shall be filed with
the department.
3. If the alleged error concerns the imposition of
any tax rate, the notice shall be filed with the county board of
supervisors. The clerk of the board of supervisors shall notify each
affected taxing entity to allow the entity to file a response to the claim.
B. The notice shall:
1. Be in a form prescribed by the department.
2. Clearly identify the subject property by tax
parcel number or tax roll number and the year or years for which the correction
is proposed.
3. State the claim and the evidence to support the
claim for correcting the alleged error.
C. Within sixty days after receiving a notice of
claim, the tax officer may file a written response to the taxpayer to either
consent to or dispute the error and to state the grounds for disputing the
error. A failure to file a written response within sixty days
constitutes consent to the error, and the board of supervisors shall direct the
county treasurer to correct the tax roll on the taxpayer's written demand
supported by proof of the date of the notice of claim and the tax officer's
failure to timely dispute the error.
D. If the tax officer disputes the error, the tax
officer shall notify the taxpayer of a time and place for a meeting between a
representative of the tax officer and the taxpayer or the taxpayer's
representative within sixty days to discuss the basis for the dispute.
E. If, after the meeting, the parties agree on all
or part of the notice of claim, the tax roll must be corrected promptly to the
extent agreed on and any taxes that have been overpaid shall be refunded
pursuant to section 42-16259.�
F. If the parties fail to agree on all or part of
the notice of claim, the taxpayer may file a petition with the board of
equalization on a form prescribed by the department and shall send a copy to
the tax officer by certified mail. The petition must be filed with
the board within ninety days after the date of the meeting or it is
barred. On receiving the petition, the board shall hold a hearing on
the disputed issues in the notice of claim within thirty days and shall issue a
written decision pursuant to the board's rules.
G. A party that is dissatisfied with the decision of
the board may appeal the decision to court within sixty days after the date the
board's decision is mailed, but any additional taxes that are determined to be
due must be timely paid before delinquency for the court to retain jurisdiction
of the matter. In addition, in order for a taxpayer to recover a
refund for taxes paid in a preceding tax year as a result of an error, all
taxes that were levied and assessed against the property for the tax year must
be paid before delinquency in order for the court to retain jurisdiction of the
matter.
H. If a tax officer accepts electronic
notice of claim from a taxpayer, the tax officer shall provide an electronic
acknowledgement of receipt to the taxpayer.
H. The tax officer may accept an
electronic notice of claim from a taxpayer. If the taxpayer elects
to submit the notice of claim electronically, the tax officer shall provide an
acknowledgment or response of receipt to the taxpayer and may provide related
communications electronically, except for any communication that is required to
be served by certified mail pursuant to subsection F of this section.� The time
limits and procedural requirements that apply to written communications under
this section apply to electronic communications allowed under this subsection.
END_STATUTE
APPROVED BY THE GOVERNOR APRIL 13, 2026.
FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 13, 2026.