ARS 42-12151 – Identifies what qualifies as agricultural:
- Farmers shall have a minimum of 20 acres of field crop in their economic unit to qualify.
- Farmers shall have a minimum of 10 acres of permanent crop in their economic unit to qualify.
a. Permanent crop is identified as citrus, apples, nuts, jojoba, peaches, etc.
- Ranchers shall have grazing land with a minimum carrying capacity of 40 animal units.
a. Based on the Wright Study of carrying capacity of rangeland in Arizona a rancher shall have sufficient acreage in their economic unit to qualify.
- Land devoted to high density use for producing commodities such as dairies, feedlots, hydroponic vegetables, wholesale nurseries (retail nurseries are considered commercial), etc.
- Land and improvements devoted to the commercial breeding, raising, boarding or training of equine. Equine properties are classified as commercial equine.
- Equine rescue facilities – Must be registered with the Department of Agriculture pursuant to section 3-1350.
Arizona Department of Agriculture Rescue Registry Website: https://agriculture.az.gov/animals/equine/equine-rescue
ARS 42-12152 - Requires that a parcel must have been in active agricultural use or production for at least three (3) of the last five (5) years. In addition, there is a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.
ARS 42-12153 - Requires an Agricultural Land Use Application be filed by the property owner and approved by the county assessor before agricultural classification shall be given. If a new owner purchases property that had an agricultural classification, that new owner shall file their Agricultural Forms within sixty (60) days of the purchase of the property, or the county assessor shall value the property at its full market value.
ARS 42-12156 – If all or part of the property ceases to qualify as agricultural property under this article, the person who owns the property at the time of change shall notify the assessor within sixty days after the change.
ARS 42-12157 - If an owner of property or the owner's agent intentionally provides false information on an application form, or fails to provide the notice required under section 42-12156:
- The property shall be reclassified immediately as being used for a nonagricultural use and shall be valued at its nonagricultural full cash value.
- The owner is liable for the additional taxes on the difference between the nonagricultural full cash value and the full cash value of the property for all of 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 per cent of the additional taxes computed under paragraph 2 of this section. The assessor may abate this penalty for good cause. Twenty per cent of the penalty shall be deposited in the state general fund, and eighty per cent of the penalty shall be deposited with the county treasurer to be used by the county assessor's office.
ARS 42-12158 - the County Assessor is required to make an on – site inspection of twenty – five percent of the agricultural land in their county each year, to insure all agricultural properties are visited and appraised every four years.
ARS 42-13102 – The owner of a property that is leased to an existing qualified agricultural economic unit shall file an Agricultural Land Use Application and a Statement of Land Lease and shall provide a copy of the lease agreement to the County Assessor’s office. Upon expiration of a lease, the property owner shall file a new Land Use Application and a Statement of Land Lease within ninety (90) days or before January 31st of each year (whichever is later), and shall provide a copy of this lease to the County Assessor’s office, or the property will be returned to its full market value.