AZ SB1506

Adds "low-income multifamily residential rental property" as a classification under Arizona class four property for property tax purposes.

Establishes a statutory income method for valuing low-income multifamily rental properties that received federal low-income housing tax credits, using actual annual income and expenses with an adjusted capitalization rate.

Requires property owners to submit three years of audited financial statements to the county assessor by September 1 to elect the income-based valuation method, or pro forma data if fewer than three years are available.

Makes all financial information submitted to the assessor confidential and allows properties to transition out of the valuation method once they fully convert to conventional multifamily use under federal tax code.

Permits property owners to appeal valuations and submit more recent income/expense data from the preceding year during the appeal process.