Bill > HB2261

This bill amends Arizona law to clarify and standardize the classification and valuation of agricultural real property for tax purposes. It renames the relevant article to "Agricultural Real Property Classification" and makes consistent use of the term "agricultural real property" throughout the statutes, replacing older phrasing like "agricultural purposes." Key changes include specifying that agricultural real property is valued using an income approach based on capitalized average annual net cash rental, and outlining the process for applying for and maintaining this classification, including requirements for active production, reasonable expectation of profit, and notification of changes in use. The bill also addresses penalties for providing false information or failing to notify of a change in use, and allows for the restoration of agricultural real property classification under specific circumstances, such as involuntary title reversion.

Agriculture and Natural Resources, Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/83985