Land, Mobile Home/RV Parks, Agricultural Classification


Introduction

For the purpose of appraisal, land is defined as real property exclusive of improvements. Improvement is defined as anything done to land with the intention of improving its value.

In Pima County, land is valued using the Market Approach. In this approach, value is estimated by comparing sales and adjusting them for differences in characteristics to indicate a value for the subject property.

By A.R.S. § 11-1133, an Affidavit of Property Value (DOR Form 82162), completed by the Buyer and Seller or their agent, is required to be appended, at the time of recording, to each deed evidencing a transfer of title, or contract relating to the sale of real property. The total consideration paid for a property, and other required information on the Affidavit of Property Value is collected, and that data is used to establish values for tax purposes.

For ad valorem purposes, a single property appraisal or "fee appraisal" is not an efficient way to establish values for the large number of properties that must be valued each year. Therefore, the Assessor's office determines values using a mass appraisal method.


Mass Appraisal Overview

Mass Appraisal is the process of establishing values on groups of properties as of a given date using standardized procedures and statistical testing. Its purpose is the equitable and efficient appraisal of property for ad valorem purposes. This involves data collection, market analysis, valuation and quality control.

Some of the characteristics that are considered in the valuation of land are location, zoning, size, topography, flood plain, configuration and legal restrictions.

Land is most typically valued on a per square foot, per acre or per site basis. The unit of comparison used by the assessor would normally be the same as the unit of comparison used by buyers and sellers in the marketplace for a particular type of property – i.e. residential, industrial or commercial.


Mobile Home/RV Parks

In Pima County, Mobile Home/RV Parks are valued after considering cost, income and market data. Each park is categorized into different value grades based on the number and quality of amenities, and its location, all of which affect the level and duration of income stream it is capable of generating. In this way, similar properties are compared against each other.

Some of the amenities considered in the valuation of Mobile Home/RV Parks are age of utilities (water, electric, gas), location, tennis courts, paved curbs and roads, shuffleboard courts, clubhouse, storage, retail stores, restaurants, golf, age restricted, outside lighting, size of spaces, and on-site management. Sales of high-end parks are used to establish values for high-end parks; sales of older, low-end parks are used to value older, low-end parks.


Agricultural

To qualify for an Agricultural Real Property classification, your land must have been in active production for seven (7) of the last ten (10) years and be one or more of the following:

  1. Field cropland in the aggregate of at least twenty (20) gross acres.
  2. An aggregate ten or more gross acres of permanent crops. This may include perennial plants and trees producing citrus, fruit, pecans, etc.
  3. Grazing land with a minimum Carrying Capacity of forty (40) animal units and containing an economically feasible number of Animal Units. ("Carrying capacity" is the number of animal units supported by a section of land (640 acres) for one year. "Animal unit" means one six-month old beef, one cow with calf, one bull, or five sheep or goats.)
  4. Devoted to high density use for producing commodities—nurseries, feed lots, dairies, poultry, swine, and fish production (no minimum acreage).
  5. Devoted to use in processing cotton.
  6. Devoted to use in processing wine grapes.

There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property. The test of reasonable expectation of operating profit is whether a prudent rancher or farmer is managing or operating his unit similar to other experienced and successful ranchers or farmers and reasonably expects to make a profit in a reasonable period of time.

"Backyard" horse operations and other such equine uses will not qualify for Agricultural status if the property is being used for commercial or private purposes such as:

  1. Boarding of horses for other private or business entities.
  2. Use as a dude ranch, trail rides etc.
  3. Breeding and sale of commercial stock such as race, show or competitive horses.
  4. Private or personal use of the property owner or associates.

Due to recent law changes, some equine properties such as boarding, commercial breeding, raising, or training animals as defined in A.R.S. § 3-1201 or equine rescue facilities as defined in A.R.S. § 3-1350, may qualify for agricultural classification for tax year 2013. The table below contains the appropriate statutes. They are available online. Please consult them before submitting any information.

Arizona Revised Statues - Title 42
Chapter 12, Article 4
Agricultural Property Classification
Arizona Revised Statues - Title 42
Chapter 13, Article 3
Valuation of Agricultural Property
Read
42-12151
Definition of agricultural real property Read
42-13101
Valuation of agricultural land
Read
42-12152
Criteria for classification of property used for agricultural purposes Read
42-13102
Statement of agricultural lease
Read
42-12153
Application for classification of property used for agricultural purposes  
Read
42-12154
Approval of nonconforming property
Read
42-12155
Notice of approval or disapproval; appeal
Read
42-12156
Notice of change in use
Read
42-12157
Recapture and penalty for false information or failure to notify of change in use
Read
42-12158
Inspections by county assessor
Read
42-12159
Restoration of agricultural classification and valuation; refund

Requirements are:

  1. Five (5) years of completed Schedule Fs from the Federal Income Tax form and/or Five (5) years of business records containing Profit and Loss statements for the property.
  2. Non-equine-generated income of any kind must be supplied for the same period of time.
Note: There are other requirements as well. However, these two are the most important.

The appropriate Arizona Department of Revenue forms for application and statement of agricultural lease (if applies) are available online. They are:

Be advised that any application may result in an on-site inspection of the property to assure that all improvements are listed properly on the Assessor’s records A.R.S. § 42-12158.

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