Bill > HB2814

This bill amends Arizona law regarding how agricultural land is valued for tax purposes, specifically by clarifying that the valuation should be based solely on the income generated by the land itself, without considering any potential urban or market influences. It specifies that the income is determined by capitalizing the average annual net cash rental, excluding taxes, from comparable agricultural land in the area over a five-year period. The capitalization rate used will be 1.5 percentage points higher than the average long-term interest rate for new farm credit loans during that same five-year period. Additionally, the bill mandates that county assessors must separately identify and value depreciable improvements, such as structures, fixtures, and permanent crops, using standard appraisal methods, and exclude their value from the statutory valuation of the agricultural land itself.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84637