AZ HB2822

Amends Arizona Revised Statutes section 42-13054 to establish additional depreciation schedules for locally assessed personal property based on initial classification year.

For personal property initially classified in tax year 2022 or later as class one, class two (P), or class six, assessors must apply a fixed valuation factor of 2.5% instead of the phased depreciation approach used for earlier years.

Maintains existing phased depreciation schedules for property classified between 1994-2021, which gradually increase the percentage of depreciated value used over the first 5-6 tax years before reaching full scheduled depreciation.

Prevents additional depreciation from applying to property valued by the state department and ensures valuations do not fall below the minimum value prescribed by the department for property in use.

Effective March 30, 2022.