Bill Text: AZ HB2596 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Personal property tax exemption
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2011-02-01 - Introduced [HB2596 Detail]
Download: Arizona-2011-HB2596-Introduced.html
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REFERENCE TITLE: personal property tax exemption |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2596 |
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Introduced by Representatives Campbell, Farley, Gallego, Heinz, Patterson, Wheeler: Alston, Hobbs, Meyer, Tovar
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AN ACT
Amending sections 42-11127, 42-12001 and 42-12002, Arizona Revised Statutes; relating to property tax exemptions; providing for conditional enactment.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-11127, Arizona Revised Statutes, is amended to read:
42-11127. Exempt personal property
A. Pursuant to article IX, section 2, subsection (6), Constitution of Arizona, personal property that is class two property pursuant to section 42‑12002, paragraph 2, subdivision (a) or (b) that is used for agricultural purposes or personal property that is class one property pursuant to section 42‑12001 that is used in a trade or business as described in section 42‑12001, paragraphs 8, through 11 or 13 9 and 10 is exempt from taxation up to a maximum amount of fifty thousand dollars of full cash value for each taxpayer.
B. On or before December 31 each year, the department shall increase the maximum amount of the exemption for the following tax year based on the average annual percentage increase, if any, in the GDP price deflator in the two most recent complete state fiscal years.
C. In this section, "GDP price deflator" means the average of the four implicit price deflators for the gross domestic product reported by the United States department of commerce or its successor for the four quarters of the state fiscal year.
Sec. 2. Section 42-12001, Arizona Revised Statutes, is amended to read:
42-12001. Class one property
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 and mining claims that are valued at full cash value pursuant to section 42‑14053.
2. Standing timber that is valued at full cash value.
3. Real and personal property of gas distribution companies, electric transmission companies, electric distribution companies, combination gas and electric transmission and distribution companies, companies engaged in the generation of electricity and electric cooperatives that are valued at full cash value pursuant to section 42‑14151.
4. Real and personal property of airport fuel delivery companies that are valued pursuant to section 42‑14503.
5. Real and personal property that is used by producing oil, gas and geothermal resource interests that are valued at full cash value pursuant to section 42‑14102.
6. Real and personal property of water, sewer and wastewater utility companies that are valued at full cash value pursuant to section 42‑14151.
7. Real and personal property of pipeline companies that are valued at full cash value pursuant to section 42‑14201.
8. Real and personal property of shopping centers that are valued at full cash value or pursuant to chapter 13, article 5 of this title, as applicable, other than property that is included in class nine.
9. Real and personal property of golf courses that are valued at full cash value or pursuant to chapter 13, article 4 of this title.
10. All real property, both real and personal, of manufacturers, assemblers or fabricators, other than property that is specifically included in another class described in this article, that are is valued under this title.
11. Real and personal property that is used in communications transmission facilities and that provides public telephone or telecommunications exchange or interexchange access for compensation to effect two‑way communication to, from, through or within this state.
12. Real property and improvements that are devoted to any other commercial or industrial use, other than property that is specifically included in another class described in this article, and that are valued at full cash value.
13. Personal property that is devoted to any other commercial or industrial use, other than property that is exempt from taxation pursuant to section 42-11127 or specifically included in another class described in this article, and that is valued at full cash value.
Sec. 3. Section 42-12002, Arizona Revised Statutes, is amended to read:
42-12002. Class two property
For purposes of taxation, class two is established consisting of two 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 this title, as applicable.
(b) Real property and improvements to property that are primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.
(c) Real property and improvements to property that are owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that are valued at full cash value.
(d) Real property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.
(e) All other real property and improvements to property, if any, that are not included in class one, three, four, six, seven or eight and that are valued at full cash value.
2. Class two (P) consists of:
(a) Personal property that is used for agricultural purposes and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.
(b) Personal property that is primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that is not included in class one, three, four, six, seven or eight and that is valued at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.
(c) (a) Personal property that is owned and controlled by a nonprofit organization that is exempt from taxation under section 501(c)(3), (4), (7), (10) or (14) of the internal revenue code if the property is not used or intended for the financial benefit of members of the organization or any other individual or organization, unless the financial benefit is for charitable, religious, scientific, literary or educational purposes, and that is valued at full cash value.
(d) (b) Personal property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.
(e) (c) All other personal property that is not exempt from taxation pursuant to section 42-11127 or included in class one, three, four, six, seven or eight and that is valued at full cash value.
Sec. 4. Conditional enactment
This act does not become effective unless the Constitution of Arizona is amended by a vote of the people at the next regular general election to authorize the legislature to exempt personal property that is used for agricultural purposes or used in a trade or business from taxation.
