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SB1764 - 572R - I Ver
REFERENCE TITLE:
property tax; definitions
State of Arizona
Senate
Fifty-seventh Legislature
Second Regular Session
2026
SB 1764
Introduced by
Senator
Mesnard
AN
ACT
amending section 42-11001, Arizona
Revised Statutes;
amending Title 42, chapter 11, article
1, Arizona Revised Statutes, by adding section 42-11010; 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 42-11001, Arizona Revised
Statutes, is amended to read:
START_STATUTE
42-11001.
Definitions
In
THIS chapter and
chapters
11
12
through 19 of this title, unless the
context otherwise requires:
1. "Assessed valuation" means the value
derived by applying the applicable percentage prescribed by chapter 15, article
1 of this title to the full cash value or limited property value of the
property, as applicable.
2. "Board" or "state board"
means the state board of equalization.
3. "County board" means the county board
of supervisors sitting as the county board of equalization.
4. "Current usage" means the
use to which property is put at the time of valuation by the assessor or the
department.
4. "Current use":
(
a
) Means the
primary use of the property as of the date for which the valuation is
determined as shown by objectively verifiable and economically substantive
conditions.
(
b
) Does not
Include temporary, incidental, nominal or related-party activities or
ARRANGEMENTS based only on contractual or intangible rights without
corresponding physical use or legally enforceable restrictions.
5. "Due date" means the next business day
if a due date of any report, claim, return, statement, payment, deposit,
petition, notice or other document or filing falls on Saturday, Sunday or a
legal holiday.
6. "Full cash value"
means:
,
(
a
)
For
property tax purposes,
means
the value determined as
prescribed by statute.
(
b
)
If a
statutory method is not prescribed,
full cash value is synonymous
with
market value
.
, which
For the purposes of this subdivision, "Market value"
means
the estimate of value that is derived annually by using standard appraisal
methods and techniques.
Full cash value is the basis
for assessing, fixing, determining and levying primary and secondary property
taxes on property described in section 42-13304.� Full cash value shall
not be greater than market value regardless of the method prescribed to
determine value for property tax purposes.
7. "Limited property value" means the
value determined pursuant to section 42-13301. Limited
property value is the basis for:
(a) Computing levy limitations for counties, cities,
towns and community college districts.
(b) Assessing, fixing, determining and levying
primary and secondary property taxes on all property except property described
in section 42-13304.
8. "Market value" means the
estimate of value that is derived annually by using standard appraisal methods
and techniques
.
8.
9.
"Net
assessed value" means the assessed value minus any exempt property.
9.
10.
"Person"
means a natural person, individual, proprietor, proprietorship, company,
corporation, organization, association, joint venture, partner, partnership,
trust, estate or limited liability company, the federal or state government, a
political subdivision of a state or any other legal entity or combination of
entities that owns, controls or has possession of real or personal property.
10.
11.
"Personal
property" includes property of every kind, both tangible and intangible,
that is not included as real estate.
11.
12.
"Primary
property taxes" means all ad valorem taxes except for secondary property
taxes.
12.
13.
"Producing
mine" or "mining claim" means a mine or mining claim from which
coal or any other mineral or mineral substance, except for clay, sand, gravel,
building stone or a mineral or mineral substance that is normally processed
into artificial stone, has been extracted for commercial purposes at any time
during a period of one year before the first Monday in January of the valuation
year.
13.
14.
"Real
estate" includes the ownership of, claim to, possession of or right of
possession to lands or patented mines.
14.
15.
"Residential
treatment and education facility" means any residential facility that is
subject to title 15, chapter 10, article 6.
15.
16.
"Roll"
means the assessment and tax roll.
16.
17.
"Secondary
property taxes" means:
(a) Ad valorem taxes or special property assessments
that are used to pay the principal of and the interest and redemption charges
on bonded indebtedness or other lawful long-term obligations that are
issued or incurred for a specific capital purpose by a municipality, county or
taxing district.
(b) Ad valorem taxes or assessments that are levied
by or for special taxing districts and assessment districts other than school
districts and community college districts.
(c) Amounts that are levied pursuant to an election
to exceed a budget, expenditure or tax limitation.
17.
18.
"Tax
year" for all property means the calendar year in which the taxes are
levied.
18.
19.
"Valuation"
means the full cash value or limited property value that is determined for real
or personal property, as applicable.
19.
20.
"Valuation
date", for the purposes of real property and property valued by the
department
:
,
(
a
)
Means
January 1 of the year preceding the year in which taxes are levied.
(
b
) Includes
any date required for determining the value of a property in a supplemental
notice provided under section 42-15105, any date required for an error
correction under section 42-16253 or any other valuation process
authorized by this chapter and chapters 12 through 19 of this title.
20.
21.
"Valuation
year" means:
(a) For real property and property valued by the
department, the calendar year preceding the year in which the taxes are levied.
(b) For personal property, the calendar year in
which the taxes are levied.
END_STATUTE
Sec. 2. Title 42, chapter 11, article 1,
Arizona Revised Statutes, is amended by adding section 42-11010, to read:
START_STATUTE
42-11010.
Full cash value
A. Full cash value is the basis for
assessing, fixing, determining and levying primary and secondary property taxes
on property described in section 42-13304.�
B. Full cash value may not be greater
than market value regardless of the method prescribed to determine value for
property tax purposes.
C. Full cash value shall be
determined based on the fee simple interest in the property, assuming
unencumbered ownership, unless a different valuation interest is expressly
required by statute.
D. The
county assessor shall:
1. Determine
a property's current use from the totality of the circumstances, including the
property's objectively verifiable characteristics, information and functions.
2. Identify
a property's current use by, and limit identification to, the general
categories of agricultural use, residential use or vacant land and the
subcategories of those uses as determined by the county assessor.
E. If a
property is subject to a statutory valuation method or is used for residential
purposes, a property's current use shall be determined without regard to
zoning, potential future use or speculative market influences.
F. For
property that is not subject to a statutory valuation method and that is not
used for residential purposes, the county assessor may consider market
influences that are consistent with the property's current use classification
and applicable appraisal standards.
END_STATUTE