Title 42 — Taxation

Property that is owned by a fraternal society or organization that is recognized under section 501(c)(8) of the internal revenue code, if the net earnings of the fraternal society or organization are devoted exclusively to religious, charitable, scientific, literary, educational …

Property that is not used or held for profit, that is owned by an organization the mission of which is to provide supplemental financial support to public libraries and that qualifies as a charitable organization and is recognized under section 501(c)(3) of the internal revenue c…

A. Property owned and operated by a federally recognized Indian tribe or its tribally designated housing authority is exempt from taxation, subject to the following requirements: 1. The property must be used exclusively for the charitable purpose of providing low-income rental ho…

B. Property, buildings and fixtures that are owned by an educational, a religious or a charitable organization, institution or association and leased to a nonprofit educational organization, institution or association are exempt from taxation if the property is used for education…

A. Property, buildings and fixtures that are leased to a nonprofit church, religious assembly or religious institution and that are primarily used or held for religious worship shall be classified as class nine property pursuant to section 42-12009. If only part of the parcel or …

1. Continues to use or hold the property primarily for the operations of the veterans' organization. 2. Is the sole economic beneficiary of the classification of the property as class nine pursuant to section 42-12009, subsection A, paragraph 6. B. Property, buildings and fixture…

A. Property that is used exclusively for affordable rental housing pursuant to section 42 of the internal revenue code or another recorded restrictive covenant imposed by financing for affordable housing and related facilities are exempt from taxation if: 1. The property is owned…

The department shall prescribe the procedure, affidavits and forms that are required to effectuate the property tax exemptions prescribed by article IX, Constitution of Arizona, and article 3 of this chapter.

A. Except for property described in sections 42-11125 and 42-11127, a person who claims exemption from taxation under article IX, section 2, Constitution of Arizona, shall: 1. When initially claiming the exemption, file an affidavit with the county assessor, signed under penalty …

A. A failure by a taxpayer who is entitled to an exemption to make an initial affidavit as required by section 42-11152 or furnish evidence required by this article between the first Monday in January and March 1 of the year constitutes a waiver of the exemption. B. If a widow or…

For the purposes of article 3 of this chapter: 1. Nonprofit organization status may be established by a letter of determination issued in the organization's name by the United States internal revenue service recognizing the organization's tax-exempt status under section 501 of th…

The exemptions provided by article 3 of this chapter relating to charitable institutions do not apply to property owned by charitable institutions but primarily held or used by others whose use is not exempt from taxation by article 3 of this chapter or by the Constitution of Ari…

For purposes of taxation, class one is established consisting of the following subclasses: 1. Producing mines and mining claims, personal property used on mines and mining claims, improvements to mines and mining claims and mills and smelters operated in conjunction with mines an…

For purposes of taxation, class two is established consisting of three subclasses: 1. Class two (R) consists of: (a) Real property and improvements to property that are used for agricultural purposes and that are valued at full cash value or pursuant to chapter 13, article 3 of t…

A. For the purposes of taxation, class three is established consisting of: 1. Real and personal property and improvements to the property that are used for residential purposes and is occupied by the owner as the owner's primary residence as described in section 42-12053, that ar…

A. For the purposes of taxation, class four is established consisting of: 1. Real and personal property and improvements to the property that are used for residential purposes, including residential property that is owned in foreclosure by a financial institution, that is not oth…

For purposes of taxation, class five is established consisting of: 1. Real and personal property of railroad companies used in the continuous operation of railroads that are valued at full cash value under chapter 14, article 8 of this title. 2. Real and personal property used in…

For the purposes of taxation, class six is established consisting of: 1. Noncommercial historic property as defined in section 42-12101 and valued at full cash value. 2. Real and personal property that is located within the area of a foreign trade zone or subzone established unde…

For purposes of taxation, class seven is established consisting of real and personal property and improvements that meet the criteria for property included in class one, paragraphs 12 and 13 and also the criteria for commercial historic property as defined in section 42-12101.

For purposes of taxation, class eight is established consisting of real and personal property and improvements that meet the criteria for property included in class four and also the criteria for commercial historic property as defined in section 42-12101.

A. For purposes of taxation, class nine is established consisting of: 1. Improvements that are located on federal, state, county or municipal property and owned by the lessee of the property if: (a) The improvements are required to become the property of the federal, state, count…

A. The classes of property are established by this article for the common treatment of the property in each class for purposes of the assignment of a common assessment percentage under chapter 15, article 1 of this title and other purposes prescribed by statute, but the statutory…

A. For the purposes of classifying property under article 1 of this chapter, partially completed or vacant improvements on the land including improved common area tracts shall be classified according to their intended use as demonstrated by objective evidence. B. For property tha…

A. Each county assessor shall review assessment information, on a continuing basis, to ensure proper classification of residential dwellings. The assessor may enter into intergovernmental agreements with the department for an exchange of information to ensure a coordinated and co…

A. For the purpose of classifying residential property under sections 42-12003, 42-12004 and 42-12052, a parcel is not considered a secondary property or rental property if the property is occupied by a member of the owner's family, who must be: 1. The owner's natural or adopted …

A. If a person purchases or converts property that is listed as class one pursuant to section 42-12001, paragraph 12 or 13, class two or class four pursuant to article 1 of this chapter and occupies the property as the person's primary residence, the person may have the classific…

A person may have the classification assigned to that person's property reviewed and may appeal the decision in the same manner as provided by law for a review of a valuation for property taxes and an appeal from that review.

A. For properties subject to this chapter and that are class three as defined in section 42-12003 or class four as defined in section 42-12004, renewable energy systems and any other device or system designed primarily for the production of renewable energy in which the majority …

A. To qualify for the classification as class six pursuant to section 42-12006, paragraph 8, the owner of a manufacturing facility or headquarters facility must provide documentation to the county assessor each year that the facility is primarily dedicated to renewable energy man…

A. The county assessor in each county shall establish and maintain a public digital registry of each parcel of property in the county that is classified as class two (C) pursuant to section 42-12002, paragraph 3 from and after December 31, 2016 because it is burdened by a conserv…

In this article, unless the context otherwise requires: 1. "Commercial historic property" means real property that: (a) Meets the criteria for classification as class one, paragraph 12 pursuant to section 42-12001 or class four pursuant to section 42-12004, subsection A, paragrap…

A. An owner of property who desires that it be classified as historic property for purposes of taxation shall: 1. Apply to the county assessor on forms that are approved by the department. 2. Consent in writing to allow the state historic preservation officer to view the property…

A. The state historic preservation officer, with the assistance of the Arizona historical advisory commission, shall review the application and may view the premises. B. The state historic preservation officer shall notify the county assessor and the applicant of the approval or …

A. The county assessor shall determine the assessed valuation of historic property as provided by chapter 15, article 1 of this title. Each year that the property is classified and assessed as historic property the assessor shall enter on the rolls that the property is so assesse…

A. Property shall remain classified and assessed as noncommercial historic property until it becomes disqualified through either: 1. Notice by the taxpayer to the assessor to remove the assessment as noncommercial historic property. 2. Sale or transfer to an ownership that makes …

A. A sale or transfer of historic property to a new owner or a transfer of historic property to a new owner by reason of the death of the former owner does not disqualify the property from assessment as historic property if the property continues to qualify as historic property u…

A. If property that is classified as historic property becomes disqualified for that classification, a penalty shall be added to the tax levied against the property on the next tax roll equal to the lesser of: 1. Fifty per cent of the total amount by which property taxes on the p…

A. If requested by the state historic preservation officer, an owner of historic property shall make an annual report as to the continued qualification of the property for classification as historic property. B. The state historic preservation officer may demand reports from owne…

In this article, unless the context otherwise requires, "agricultural real property" means real property that is one or more of the following: 1. Cropland in the aggregate of at least twenty gross acres. 2. An aggregate ten or more gross acres of permanent crops. 3. Grazing land …

A. Property is not eligible for classification as property used for agricultural purposes unless it meets the following criteria: 1. The primary use of the property is as agricultural land and the property has been in active production according to generally accepted agricultural…

A. The county assessor shall make agricultural use application forms available that require the following information in addition to any other information prescribed by the department: 1. The size of the property. 2. The type of crops grown on the property. 3. The type and number…

A. The county assessor may: 1. Approve the agricultural classification of property if the property has either: (a) Fewer than the minimum number of acres or animal units as prescribed in section 42-12151. (b) Been in commercial agricultural production for less than the period pre…

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 di…

A. If all or part of the property ceases to qualify as agricultural property under this article, the person who owns the property at the time of change shall notify the county assessor within sixty days after the change. B. If the county assessor determines that there has been a …

If an owner of property or the owner's agent intentionally provides false information on an application form, or fails to provide the notice required under section 42-12156: 1. The property shall be reclassified immediately as being used for a nonagricultural use and shall be val…

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. …

A. A county assessor may reclassify real property as class two pursuant to section 42-12002 and this article under the following conditions: 1. The current owner previously held title to the property but sold the property before September 1, 1989. 2. Title to the property has rev…

A. The department shall: 1. Exercise general supervision over county assessors in administering the property tax laws to ensure that all property is uniformly valued for property tax purposes. 2. Prescribe forms to be used by county assessors for: (a) Listing and valuing property…

A. On or before November 15 of each year each county assessor shall report to the department each parcel of property that has not been appraised during the preceding three years. The assessor shall include a statement of the reasons for the failure to appraise each such parcel. B…

A. County assessors shall use data processing systems that are prescribed by the department, but a county assessor who has a data processing system that is compatible with the system prescribed by the department may continue to use that system if it is coordinated with the system…