property tax; appeals; valuation; notice

HB4121 - 572R - I Ver

REFERENCE TITLE:
property tax; appeals; valuation; notice

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 4121

Introduced by

Representatives
Crews: Cavero, Liguori

AN
ACT

amending sections 42-16105, 42-16157,
42-16158 and 42-16252, Arizona Revised Statutes; relating to
property tax appeals.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 42-16105, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-16105.

Appeal of valuation or legal classification from county assessor
to county board

A. If the county assessor denies all or part of a
petition under section 42-16055, 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 by filing with the clerk of the county board,
within twenty-five days after the date that the assessor's decision was
mailed to the petitioner, a copy of the written basis of the decision according
to the instructions on the petition.�
The petitioner shall send
a copy of the petition filed with the clerk of the county board to the county
assessor by certified mail.� The department shall adopt standard instructions
for the county assessor to include with the county assessor's decision, in both
physical and digital formats, to inform the petitioner of the requirement to
send a copy of the petition to the county assessor.

B. The department may contest any proposed valuation
or classification or any proposed change in valuation or classification before
the county board. If, in the director's opinion, a decision of an
assessor is erroneous, the director may appeal the assessor's decision to the
county board within twenty-five days after the assessor's decision was mailed
to the taxpayer and the department. In such an action the taxpayer
shall raise any defense the taxpayer has to liability for the tax and any
additional tax sought to be imposed. If issues other than valuation
or classification are raised by either party, the action shall be tried as if
it were an action pursuant to section 42-11005 or 42-11052.

C. A property owner that receives a notice of
valuation under section 42-15105 may appeal the valuation or legal
classification to the county board as provided in subsection A of this section
within twenty-five days after the date of the assessor's notice.
END_STATUTE

Sec. 2. Section 42-16157, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-16157.

Appeal of valuation or legal classification from county assessor
to state board of equalization

A. Except as provided in subsection C or D of this
section, if the county assessor denies all or part of a petition under section
42-16055, and if a county board of equalization is not established in the
county where the property is located, the petitioner may appeal the assessor's
decision to the state board of equalization by filing with the state board,
within twenty-five days after the date that the assessor's decision was
mailed to the petitioner, a copy of the written basis of the decision according
to the instructions on the petition.
� The petitioner shall send
a copy of the petition filed with the state board to the county assessor by
certified mail.

B. The department may contest any proposed valuation
or classification or any proposed change in valuation or classification before
the state board. If, in the director's opinion, a decision of an assessor is
erroneous, the director may appeal the assessor's decision to the state board
within twenty-five days after the assessor's decision was mailed to the
taxpayer and the department. In such an action the taxpayer shall
raise any defense the taxpayer has to liability for the tax and any additional
tax sought to be imposed. If issues other than valuation or
classification are raised by either party, the action shall be tried as if it
were an action pursuant to section 42-11005 or 42-11052.

C. A property owner who receives a notice of
valuation under section 42-15105 may appeal the valuation or legal
classification to the state board as provided in subsection A of this section
within twenty-five days after the date of the assessor's notice.

D. A property owner whose petition is denied, in
whole or in part, pursuant to section 42-19051 may only appeal the
valuation or legal classification to the state board as provided in subsection
A of this section within twenty days after the date of the assessor's notice of
refusal or decision.

E. The state board may contract with any county with
a population of less than five hundred thousand persons according to the most
recent United States decennial census to review and hold hearings and make
decisions on petitions filed under section 42-16105. These
hearings shall be conducted in the county in which the property of the subject
hearings is located.
END_STATUTE

Sec. 3. Section 42-16158, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-16158.

Appeal of valuation or legal classification from department to
state board

A. A property owner who is not satisfied with the
valuation or legal classification of the property as determined by the
department may appeal to the state board by filing a petition with the state
board that is postmarked on or before October 1 or within fifteen days after
the department mails its decision to the property owner, whichever date is
later. The state board shall prescribe the form of and procedure for
filing the petition by administrative rule.
� The property owner
shall send a copy of the petition filed with the state board to the department
by certified mail.

B. The state board shall notify the petitioner of
the time and place of the hearing. The petitioner:

1. May appear before the state board at such time as
the
state
board may direct.

2. Is entitled to be heard at any hearing regarding
the valuation or legal classification of the property.

3. Shall show cause why the valuation or legal
classification should be changed.

C. If the state board orders the valuation or legal
classification to be changed, it shall immediately transmit a copy of the order
to the property owner and to the officers of this state and the county, city or
town in charge of tax assessments who shall correct the tax roll accordingly.
END_STATUTE

Sec. 4. Section 42-16252, Arizona Revised
Statutes, is amended to read:

START_STATUTE
42-16252.

Notice of proposed correction; response; petition for review;
appeal

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

any
additional tax, interest or penalty may
not
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
and shall send a copy of the
petition to the tax officer by certified mail.� The petition must be filed with
the board
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.
END_STATUTE