AZ SB1263

Establishes separate class two (P) property classification for personal property used for agricultural purposes or by nonprofits, with assessed valuation of 15-16 percent of full cash value.

Expands class one property to separately classify personal property devoted to commercial or industrial use (new paragraph 13) and removes certain personal property from class two (R) real property classification.

Increases the personal property tax exemption limit from current amount to $207,366 of full cash value for taxpayers using property for agricultural or business purposes, with annual adjustments based on employment cost index.

Removes solar energy device valuation provisions that previously required personal property characterization (repeals sections 42-13054, 42-13055, and 42-13056) and clarifies solar devices add no value to real property.

Makes conforming changes to property tax classification and valuation statutes to reflect new class two (P) designation and related personal property assessment methodology changes.