HB 2479 Summary

• Amends Arizona tax law to require personal property depreciation schedules to be based on a three-year useful life beginning in tax year 2014.

• Establishes graduated depreciation adjustment schedules for personal property in Class One and Class Two (P) based on the initial classification year, with different percentage valuations applied for the first through sixth+ years of assessment.

• For property initially classified in 2012 or later, requires assessors to apply depreciation percentages ranging from 25% in year one to 89% in year five, then use full scheduled depreciation thereafter.

• Exempts property valued by the state department and prohibits depreciation adjustments from reducing valuations below the minimum value set by the department for property in use.