Forest Incentive Programs - Property Taxes for Arizona

Type of Tax

25% Reduction of Fair Market Value

Law

AZ Code Section 42-12001

Objective

A. The classes of property are established by this article for the common treatment of the property in each class for purposes of the assignment of a common assessment percentage under chapter 15, article 1 of this title and other purposes prescribed by statute, but the statutory classes under this article are not considered to constitute classes of property for purposes of article IX, section 1, Constitution of Arizona.

B. The valuation of properties in individual subclasses established by this article shall be determined in the distinct manner prescribed by law for each subclass in compliance with article IX, section 1, Constitution of Arizona.

Requirements

Qualifying land is real property that meets on or more of requirements listed in A.R.S. 42-12151

Land must have been used for agricultural purposes for that last seven years

County assessors conduct on-site inspections

There is not a penalty for withdrawing from the program unless the landowner fails to inform the County Assessor of the land use change within 60 days of conversion.

Failure to notify the County Assessor will result in the following penalties:

• immediate reclassification

• back tax for all the years in which the property has been enrolled

• liable for 25% of additional taxes computed

Program Administration

State Department of Revenue administers rules. County tax assessor determines the value of property.