HB2376 Summary

• Establishes guest ranches as a new category within Class 2 property for Arizona property tax purposes, subject to special valuation under Article 12.

• Defines a guest ranch as property with at least 1,000 contiguous acres (private, leased, or public land with riding permits), an organized horse program, permanent structures with utilities, and provision of three meals daily to guests.

• Requires guest ranch owners to record a deed restriction with the county recorder for at least 10 years limiting the property to guest ranch use, with initial restrictions due by August 31 preceding valuation.

• Imposes a penalty on owners who convert guest ranch property to different uses: the penalty equals the difference between taxes owed had the property not been valued under this article for the preceding 10 years (or shorter period of valuation) versus actual taxes paid.

• Requires county assessors to maintain records of guest ranch valuations for at least 10 years for penalty calculation purposes if the property use changes.