HB2496 Summary

• Adds guest ranches to Arizona's Class Two (R) real property classification for property tax purposes and creates a new valuation method under Arizona Revised Statutes chapter 13, article 12.

• Defines "guest ranch" as property with at least 1,000 contiguous acres (private, leased, or public land with riding permit), organized horse program, permanent structures with utilities, horseback riding and recreational activities, and three daily meals for guests.

• Requires guest ranch owners to record a deed restriction with the county recorder restricting the property to guest ranch use for at least 10 years, with the restriction refiled to maintain continuous 10-year coverage.

• Imposes a penalty equal to back taxes owed if property is converted to different use in violation of the deed restriction, calculated as the difference between taxes that would have been paid without the guest ranch valuation and actual taxes paid over the preceding 10 years or applicable period.

• Requires county assessors to maintain records of guest ranch valuations and comparative property values for at least 10 years to calculate penalties upon conversion to alternative use.