AZ HB2318

Amends section 42-13101 of Arizona Revised Statutes regarding valuation of agricultural land used for agricultural purposes.

Requires agricultural land to be valued using only the income approach without any allowance for urban or market influences.

Specifies that income must be determined using capitalized average annual net cash rental based on comparable arm's length rental agreements from the preceding five-year period.

Requires capitalization at a rate 1.5 percentage points higher than the average long-term annual effective interest rate for all new farm credit services loans from the preceding five-year period.

Clarifies that agricultural land does not include permanent crops or other depreciable improvements on the land.