AZ HB2566

Establishes a new property classification (Class Four, paragraph 10) for low income multifamily residential rental properties valued under a statutory income method.

Allows owners of low income multifamily rental properties that received federal tax credits under IRC section 42 to elect an income-based valuation method using actual annual income and expenses with a capitalization rate of 12.5% plus the effective tax rate.

Requires property owners to submit income and expense documentation to the county assessor by September 1 of the year preceding valuation, or pro forma data if historical data is unavailable.

Restricts eligibility to properties with federal income tax credits, current income and rent restrictions consistent with IRC section 42, and without court judgments for breach of restrictive covenants or IRC section 42 violations.

Permits property owners using this valuation method to appeal assessed values under existing appeal procedures and submit more recent income and expense data during appeals.