Assessor

Agricultural Classification

Eligibility
To be eligible for agricultural classification, property must meet specific criteria in the following areas:

Use Expectation of Profit Functional Contribution Filing Requirements

1.  Use:
The primary use of the land must be agricultural. Ownership alone does not qualify property for agricultural classification.

2.  Expectation of Profit:
There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.

3.  Functional Contribution:
If the property is non-contiguous, the non-contiguous parcel must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property.  In general, non-contiguous parcels must be fenced, have an independent water source and have ingress and egress.

4.  Filing Requirements (applications accepted November 1st thru December 31st only):
The owner of an Agricultural Business Entity or the owner’s designated agent must file a complete Agricultural Land Use Application before the property may be classified as agricultural. This form must be filed with the Assessor’s Office on the following occasions: (See links to forms at bottom of page).

  • Applying for the first time on a piece of property.
  • Newly created parcels (parcels either split or combined) regardless of the parent parcel’s status.
  • If the parcel changes ownership.
  • Leased Land:  The owner or owner’s agent of land leased to an agricultural entity must file a complete Agricultural Lease Abstract (see link to DOR Form 82917 below). In order for leased land to qualify for agricultural classification, it must be leased to an agricultural entity that currently meets the standards for agricultural classification, pursuant to A.R.S 42-13102 as follows:  

Each lease of agricultural land or agreement to rent agricultural land for a period of more than 90 days shall be  abstracted in a written statement in a form approved by the department (DOR Form 82917) containing at least the following information:

1)    The name and address of the lessor and lessee.

2)    The complete legal description (or parcel number) of the property.

3)    The situs address, if any, of the property. 
 
4)    The cash or cash equivalent of the lease payments.

5)    The conditions of the lease, including the relationship, if any, of the parties. 

6)    The lessor expenses associated with the property excluding land cost, interest on land cost, income tax depreciation and capital improvements.

If a change in the lessee or lessor, or a change in the lease as abstracted occurs, a new statement shall be filed with the assessor within 3 months after the change, or before January 31, whichever is later.

The assessor shall transmit a copy of the statement to the Department of Revenue.

*Due to Arizona property assessment notification laws, valuations and classifications are finalized a full year ahead of time, and applications are only accepted November 1st through December 31st of every year.  This means, for example, all applications submitted and approved in November or December of 2017, agricultural classification will be applied in Tax Year 2019.

**** If all or part of the property ceases to qualify as agricultural property, the person who owns the property at the time of change shall notify the Assessor within sixty (60) days after the change. (A.R.S. 42-12156)

Penalties:

  • The penalties for filing false information or failing to notify of a change in use include:
  • The property shall be reclassified immediately as being used for a non- agricultural use and shall be valued at its non- agricultural full cash value.
  • The owner is liable for the additional taxes on the difference between the non-agricultural full cash value and the full cash value of the property for all the tax years in which the property was classified based on the false information.
  • The owner shall also pay a penalty equal to twenty-five (25) percent of the additional taxes.

Natural Grazing Land:

Definition per A.R.S. 42-12151 & 42-12152

  • Grazing land with a minimum carrying capacity of forty (40) animal units, and containing an economically feasible number of animal units.
  • There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.
  • If the property has non-contiguous parcels, the non-contiguous parcels must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property.
  • The primary use of the property is as agricultural land and the property has been in active production according to generally accepted agricultural practices for at least three of the last five years.

Field Crops

Definition per A.R.S. 42.12151

  • Cropland in the aggregate of at least twenty acres.
  • There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.
  • If the property has non-contiguous parcels, the noncontiguous parcels must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property.
  • The primary use of the property is as agricultural land and the property has been in active production according to generally accepted agricultural practices for at least three of the last five years.

Permanent Crops

Definition per A.R.S. 42-12151

  • Aggregate ten or more gross acres of permanent crops.
  • There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.
  • If the property has non-contiguous parcels, the noncontiguous parcels must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property.
  • The primary use of the property is as agricultural land and the property has been in active production according to generally accepted agricultural practices for at least three of the last five years.

Equine Property (Commercial Breeding, Raising, Boarding or Training)

 To obtain an Agricultural Application please click on the links below:

Please be sure once you click on either of the applications you scroll to the bottom of the page for the forms needed.

Agricultural Forms
2019 Agricultural Business Property Statement 82520A
2019 Agricultural Business Property Instructions 82520A-I

**For additional information regarding Agricultural Status please contact the Assessor’s Office.