HB 2145 — dude ranches; historical markers

(a) Up to ten acres on a single parcel of real property on which the residential improvement is located.

(b) More than ten, but not more than forty, acres on a single parcel of real property on which the residential improvement is located if it is zoned exclusively for residential purposes or contains legal restrictions or physical conditions that prevent the division of the parcel.

For the purposes of this subdivision, "physical conditions" means topography, mountains, washes, rivers, roads or any other configuration that limits the residential usable land area.

2.

Real and personal property and improvements to the property that are used for residential purposes and solely leased or rented, that are not included in class one, two, three, six, seven or eight and that are valued at full cash value.

3.

Child care facilities that are licensed under title 36, chapter 7.1 and that are valued at full cash value.

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2145 4.

Real and personal property and improvements to property that are used to operate nonprofit residential housing facilities that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

5.

Real and personal property and improvements that are used to operate licensed residential care institutions or licensed nursing care institutions that provide medical services, nursing services or health-related services and that are structured to house or care for persons with disabilities or who are at least sixty-two years of age and that are valued at full cash value.

6.

Real and personal property consisting of not more than eight rooms of residential property that are leased or rented to transient lodgers, together with furnishing not more than a breakfast meal, by the owner who resides on the property and that is valued at full cash value.

7.

Real and personal property that consists of residential dwellings maintained for occupancy by agricultural employees as a condition of employment or as a convenience to the employer, that is not included in class three and that is valued at full cash value.

The land associated with these dwellings shall be valued as agricultural land pursuant to chapter 13, article 3 of this title.

8.

Real property and improvements to property constituting common areas that are valued pursuant to chapter 13, article 9 of this title.

9.

Real and personal property that is defined as timeshare property by section 32-2197 and valued pursuant to chapter 13, article 10 of this title, except for any property used for commercial, industrial or transient occupancy purposes and included in class one to the extent of that use.

10.

Real and personal property and improvements that are used for residential purposes and that are leased or rented to lodgers, except for:

(a) Property occupied by the owner of the property as the owner's primary residence and included in class three.

(b) Property used for commercial purposes and included in class one.

11.

Low-income multifamily residential rental properties that are valued pursuant to chapter 13, article 13 of this title.

12.

REAL AND PERSONAL PROPERTY AND IMPROVEMENTS TO PROPERTY OF A GUEST RANCH THAT MEETS THE REQUIREMENTS PRESCRIBED IN CHAPTER 13, ARTICLE 12 OF THIS TITLE AND THAT IS INCLUDED IN THE ARIZONA DUDE RANCH HERITAGE TRAIL PROGRAM ESTABLISHED BY SECTION 41-867 AND THAT ARE VALUED AT FULL CASH VALUE.

TheSubsection appropriationA, madeparagraphs in4 subsectionand A5 of this section isdo exemptnot fromlimit theeligibility provisionsfor ofexemption sectionfrom 35-190,taxation Arizonaunder Revisedchapter Statutes,11, relatingarticle to3 lapsing of appropriations.this title.

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2145 Sec.

5.

Section 42-13302, Arizona Revised Statutes, is amended to read:

42-13302.

Determining limited value in cases of modifications, omissions and changes A.

In the following circumstances the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification:

1.

Property that was erroneously totally or partially omitted from the property tax rolls in the preceding tax year, except as a result of this section.

2.

Property for which a change in physical, objectively verifiable use has occurred on the property since the preceding tax year.

For the purposes of this paragraph and section 42-16002:

, (a) A change in the occupant or classification of a single-family residence is not a change in use, in and of itself.

(b) A CHANGE IN THE CLASSIFICATION OF A GUEST RANCH AS DEFINED IN SECTION 42-13551 IS NOT A CHANGE IN USE, IN AND OF ITSELF.

3.

Property that has been modified by construction, destruction or demolition since the preceding valuation year such that the total value of the modification is equal to or greater than fifteen percent of the full cash value.

4.

Property that has been split, subdivided or consolidated from January 1 through September 30 of the valuation year, except for cases that result from an action initiated by a governmental entity.

B.

In the case of property that is split, subdivided or consolidated after September 30 through December 31 of the valuation year, except for cases that result from an action initiated by a governmental entity, the total limited property value of the new parcel or parcels is the same as the total limited property value of the original parcel or parcels.

For the following valuation year, the limited property value shall be established at a level or percentage of full cash value that is comparable to that of other properties of the same or a similar use or classification.

The new parcel or parcels shall retain the same value-adding characteristics that applied to the original parcel before being split or consolidated, except as provided in subsection A, paragraph 3 of this section.

C.

In the case of property that was split, subdivided or consolidated from January 1 through September 30 of the valuation year as a result of an action initiated by a governmental entity, the limited value is the lower of either:

1.

The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2.

The total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, - 6 - H.B.

2145 the limited property value shall be established pursuant to section 42-13301.

D.

In the case of property that was split, subdivided or consolidated after September 30 through December 31 of the valuation year as a result of an action initiated by a governmental entity, the total limited value for the resulting parcel or parcels is the same as the total limited value for the original parcel or parcels as determined under section 42-13301, and in the following valuation year, the limited property value shall be established as the lower of either:

1.

The level or percentage of full cash value that is comparable to that of other properties of the same or similar use or classification.

2.

The limited property value established pursuant to section 42-13301.

Sec.

6.

Section 42-13551, Arizona Revised Statutes, is amended to read:

42-13551.

Definition of guest ranch For the purposes of this article, "guest ranch" means real property and improvements to property being used as a guest ranch that meets all of the following:

1.

Consists of at least one thousand contiguous acres that are any of the following:

(a) Private property adjacent to the headquarters.

(b) Leased property adjacent to the headquarters.

For the purposes of this subdivision, the lease agreement may be for private or public real property and must be in writing and include riding rights.

(c) Public land that is subject to a riding permit.

2.

Provides recreational activities that include horseback riding, hiking, biking or a working cattle ranch experience for guests.

3.

Has an organized and supervised horse program on the property with a horse herd that consists of a number of horses that is equal to or greater than the total number of guest accommodations DURING THE OPERATING SEASON IN WHICH GUESTS ARE PRESENT.

4.

Uses at least one permanent structure that has running water, sewage disposal and a kitchen.

5.

Provides guests with three meals each day as part of the guest ranch's primary package, commonly referred to as the "American plan".

6.

Includes the word "ranch" or "rancho" in the guest ranch's name.

APPROVED BY THE GOVERNOR JUNE 19, 2023.

FILED IN THE OFFICE OF THE SECRETARY OF STATE JUNE 19, 2023.

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