Bill Text: AZ SB1412 | 2014 | Fifty-first Legislature 2nd Regular | Engrossed
Bill Title: Accelerated depreciation; class 6 property
Spectrum: Partisan Bill (Republican 9-0)
Status: (Engrossed - Dead) 2014-04-03 - House Committee of the Whole action: Retained on the Calendar [SB1412 Detail]
Download: Arizona-2014-SB1412-Engrossed.html
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Senate Engrossed |
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State of Arizona Senate Fifty-first Legislature Second Regular Session 2014
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SENATE BILL 1412 |
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AN ACT
amending sections 42‑13054 and 42-13055, Arizona Revised Statutes; relating to class six property.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 42-13054, Arizona Revised Statutes, is amended to read:
42-13054. Taxable value of personal property; depreciated values of personal property in class one, class two (P) and class six
A. The taxable value of personal property that is valued by the county assessor is the result of acquisition cost less any appropriate depreciation as prescribed by tables adopted by the department. The taxable value shall not exceed the market value.
B. Except as provided in subsection C of this section and notwithstanding any other statute, the assessor shall adjust the depreciation schedules prescribed by the department as follows to determine the valuation of personal property:
1. For personal property that is initially classified during tax year 1994 through tax year 2007 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42‑12001 and personal property that is initially classified during tax year 1995 through tax year 2007 as class two (P) pursuant to section 42‑12002:
(a) For the first tax year of assessment, the assessor shall use thirty‑five per cent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use fifty‑one per cent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use sixty‑seven per cent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use eighty‑three per cent of the scheduled depreciated value.
(e) For the fifth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
2. For personal property that is initially classified during tax year 2008 through tax year 2011 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42‑12001 and personal property that is initially classified during tax year 2008 through tax year 2011 as class two (P) pursuant to section 42‑12002:
(a) For the first tax year of assessment, the assessor shall use thirty per cent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use forty-six per cent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use sixty-two per cent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use seventy-eight per cent of the scheduled depreciated value.
(e) For the fifth tax year of assessment, the assessor shall use ninety-four per cent of the scheduled depreciated value.
(f) For the sixth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
3. For personal property that is initially classified during or after tax year 2012 as class one, paragraph 8, 9, 10 or 13 pursuant to section 42‑12001, and personal property that is initially classified during or after tax year 2012 as class two (P) pursuant to section 42‑12002 and personal property that is acquired during or after tax year 2014 and initially classified during or after tax year 2015 as class six pursuant to section 42‑12006:
(a) For the first tax year of assessment, the assessor shall use twenty-five per cent of the scheduled depreciated value.
(b) For the second tax year of assessment, the assessor shall use forty-one per cent of the scheduled depreciated value.
(c) For the third tax year of assessment, the assessor shall use fifty-seven per cent of the scheduled depreciated value.
(d) For the fourth tax year of assessment, the assessor shall use seventy-three per cent of the scheduled depreciated value.
(e) For the fifth tax year of assessment, the assessor shall use eighty-nine per cent of the scheduled depreciated value.
(f) For the sixth and subsequent tax years of assessment, the assessor shall use the scheduled depreciated value as prescribed in the department's guidelines.
C. The additional depreciation prescribed in subsection B of this section:
1. Does not apply to any property valued by the department.
2. Shall not reduce the valuation below the minimum value prescribed by the department for property in use.
Sec. 2. Section 42-13055, Arizona Revised Statutes, is amended to read:
42-13055. Reducing minimum value for property in use
A. Beginning in valuation year 2000, the department shall reduce the minimum value prescribed for class one, paragraphs 8, 9, 10 and 13 and class two (P) valued by the assessor by 2.5 per cent good each year.
B. beginning in valuation year 2015, the department shall reduce the minimum value prescribed for class six valued by the assessor by 2.5 per cent good each year.
B. C. This section does not require the department to reduce the minimum value for any property in use below 2.5 per cent good.
