AZ HB2261

Replaces the term "property used for agricultural purposes" with "agricultural real property" throughout Arizona's property tax statutes for classification and valuation purposes.

Requires property owners to file an agricultural real property application form with the county assessor before property can receive agricultural classification, with new owners having 60 days after ownership change to file.

Maintains existing criteria that agricultural property must be in active production for at least three of the last five years with a reasonable expectation of operating profit.

Requires county assessors to inspect 25% of agricultural real property annually and appraise all such properties within every four years.

Imposes a 25% penalty on additional taxes owed when owners intentionally provide false information on applications or fail to notify assessors of changes in agricultural use.