Arizona Laws 42-12009. Class nine property
A. For purposes of taxation, class nine is established consisting of:
Terms Used In Arizona Laws 42-12009
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Internal revenue code: means the United States internal revenue code of 1986, as amended and in effect as of January 1, 2023, including those provisions that became effective during 2022 with the specific adoption of their retroactive effective dates but excluding all changes to the code enacted after January 1, 2023. See Arizona Laws 42-1001
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: includes both real and personal property. See Arizona Laws 1-215
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Residential treatment and education facility: means any residential facility that is subject to Title 15, Chapter 10, Article 6. See Arizona Laws 42-11001
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
- Valuation: means the full cash value or limited property value that is determined for real or personal property, as applicable. See Arizona Laws 42-11001
- Valuation year: means :
(a) For real property and property valued by the department, the calendar year preceding the year in which the taxes are levied. See Arizona Laws 42-11001
1. Improvements that are located on federal, state, county or municipal property and owned by the lessee of the property if:
(a) The improvements are required to become the property of the federal, state, county or municipal owner of the property on termination of the leasehold interest in the property.
(b) Both the improvements and the property are used exclusively for convention activities or athletic, recreational, entertainment, artistic or cultural facilities.
2. Improvements that are located on federal, state, county or municipal property and owned by the lessee of the property if:
(a) The improvements are required to become the property of the federal, state, county or municipal owner of the property on termination of the leasehold interest in the property.
(b) Both the improvements and the property are:
(i) Used for or in connection with aviation, including hangars, tie-downs, aircraft maintenance, sales of aviation-related items, charter and rental activities, parking facilities and restaurants, stores and other services located in a terminal.
(ii) Located on a state, county, city or town airport or a public airport operating pursuant to sections 28-8423, 28-8424 and 28-8425.
3. Property that is defined as "contractor-acquired property" or "government-furnished property" in the federal acquisition regulations (48 Code of Federal Regulations section 45.101) and that is leased to or acquired by the government and used to perform a government contract.
4. Property of a corporation that is organized by or at the direction of this state or a county, city or town to develop, construct, improve, repair, replace or own any property, improvement, building or other facility to be used for public purposes that the state, county, city or town pledges to lease or lease-purchase with state, county or municipal special or general revenues and that is not otherwise exempt under chapter 11, article 3 of this title.
5. Real property and improvements, including land, buildings, furniture and equipment, regardless of ownership, that are leased for the entire valuation year to, and used exclusively by, a nonprofit organization that is recognized under section 501(c)(3) of the internal revenue code and that operates on the premises as either a charter school pursuant to section 15-183 or a residential treatment and education facility or that are leased for the entire valuation year to, and used exclusively by, a nonprofit church, religious assembly or religious institution. If only part of a parcel of real property or improvements to real property, including land, buildings, furniture and equipment, is leased for operation of a charter school or residential treatment and education facility or a church, religious assembly or religious institution as provided by this paragraph, only the portion so leased qualifies for classification under this section. A property owner that leases property to a charter school or residential treatment and education facility or a church, religious assembly or religious institution as provided by this paragraph shall file an affidavit with the county assessor stating that the charter school or residential treatment and education facility or the church, religious assembly or religious institution shall be the sole beneficiary of the change in property tax classification pursuant to this section and that the lease rate that is charged to the charter school or residential treatment and education facility or the church, religious assembly or religious institution is consistent with the lease rates that are charged to other tenants of the property or a fair market rate.
6. Real property and improvements, including land, buildings, furniture and equipment, regardless of ownership, that are leased for the entire valuation year to, and used exclusively by, a United States veterans’ organization that qualifies as a charitable organization and that is recognized under section 501(c)(3) or 501(c)(19) of the internal revenue code and that operates the United States veterans’ organization’s post on the premises. If only part of a parcel of real property or improvements to real property, including land, buildings, furniture and equipment, is leased for operation of a United States veterans’ organization as provided by this paragraph, only the portion so leased qualifies for classification under this section. A property owner that leases property to a United States veterans’ organization as provided by this paragraph shall file an affidavit with the county assessor stating that the United States veterans’ organization shall be the sole beneficiary of the change in property tax classification pursuant to this section and that the lease rate that is charged to the United States veterans’ organization is consistent with the lease rates that are charged to other tenants of the property or a fair market rate.
B. Improvements that are located in an area defined as a research park pursuant to section 35-701 may not be classified under this section.
C. All property classified as class nine is subject to valuation at full cash value.