Agricultural Classification as determined by the County Assessor’s Office is for land valuation purposes. This is a statutory valuation that is intended to offer commercial agricultural operations a reduced tax liability, so they can produce agricultural commodities, IF they qualify. To be classified as agricultural by the Assessor, the property must be operating with a reasonable expectation of profit according to generally accepted agricultural practices. In other words, it must be a commercial operation that is in production. Please refer to Arizona Revised Statute (ARS) 42-12151 for a description of the type of businesses that will qualify.

Agricultural Exemption as determined by the County Planning & Development Department has to do with how the property is utilized/developed within the County’s land use jurisdiction. This falls within the purview of the County Planning and Development Dept. and is outside of the Assessor’s scope. If you have questions regarding an agricultural exemption, you should reach out the County Planning and Development for assistance. Their agricultural exemption page can be found here: https://www.maricopa.gov/DocumentCenter/View/6345/Agricultural-Exemption-Application-Packet-PDF?bidId=

An Agricultural Classification and Agricultural Exemption are not mutually exclusive. Having agricultural classification from the Assessor’s Office DOES NOT automatically qualify the property for agricultural exemption with regard to planning, zoning or permitting. Likewise, having an agricultural exemption from the County’s Planning & Development Department DOES NOT automatically qualify the property for agricultural classification. The planning and development packet (referenced above) requires an “Agricultural Verification Form” that is completed by the Assessor’s Office. This form will only be completed if the property has current agricultural classification.

The Assessor certify mails three types of agricultural documents:

• Information requests & parcel split letters. These are intended to notify the property owner that action must be taken to retain agricultural classification. Both the deficiency and the remedy will be listed in the letter, failure to respond will result in a loss of agricultural classification.
• Agricultural Classification Removal Letters & Denial Letters. These are sent when property changes use or has been out of production and no longer qualifies for agricultural classification. They are intended to notify, no action is needed
• Canvass Letters. These letters are sent to the agricultural producers rather than the property owners. The letter is designed to assist the Assessor in verifying property use; ensuring statutory compliance; and understanding how and where an operator is utilizing property in Maricopa County. Failure to respond to these letters will result in the removal of the operator’s approved status and all related property will be removed from agricultural classification.

Yes, any time there is a significant change you must submit an updated application. Significant changes can be:

• Deed transfer to a new owner or a new legal entity
• Split or combine that alters the legal description of the property.
• An expired or altered lease
• A change is use
• A change in operator

Additionally, the Assessor’s Office is required (per ARS 42-12158) to “Make an on-site inspection and appraise all of these properties within every four years”. As a part of that process, the operator may be asked to provide operational information that enables the Assessor to verify statutorily compliance in the use of the property. These requests must be responded to for agricultural classification to be retained.

The Assessor has a duty to ensure all property within the County is valued as it is currently being utilized. Agricultural Classification has very specific statutory criteria. Therefore, it is necessary for the Assessor to gather information to determine if the statutory criteria are being met. The Assessor is granted the authority, per ARS 42-15052, to demand this information. Failure to respond will result in the denial or removal of Agricultural Classification.

As per ARS 42-12157, If an owner of property or the owner's agent intentionally provides false information on an application form, or fails to provide the notice required under section 42-12156:

1. The property shall be reclassified immediately as being used for a nonagricultural use and shall be valued at its nonagricultural full cash value and limited property value.
2. The owner is liable for the additional taxes on the difference between the nonagricultural value and the value of the property for all the tax years in which the property was classified based on the false information.
3. The owner shall also pay a penalty equal to twenty-five per cent of the additional taxes computed under paragraph 2 of this section. The assessor may abate this penalty for good cause. Twenty per cent of the penalty shall be deposited in the state general fund, and eighty per cent of the penalty shall be deposited with the county treasurer to be used by the county assessor's office.

The Assessor is always working in a future year. If you have received a tax bill that is not agricultural values, it is past the period for correction. The Assessor must receive agricultural documentation on or before May 15th to be considered for the current valuation year. Applications received after May 15th will be reviewed and processed for the next available tax year, in the future. As per ARS 42-12153, the Assessor shall not value property as agricultural if the owner or owner’s agent has failed to submit an updated application. Therefore, the Assessor does not have the statutory authority to change the value back to agricultural classification at the time the tax bill is issued.

If you believe your property should be classified as agricultural but, the noticed value is market, you should appeal per the instructions on the notice. You may file an administrative appeal at no cost to you or you may file a tax court appeal. If you file an administrative appeal and disagree with the Assessor’s decision you will be afforded the right to appeal to the State Board of Equalization and then to tax court. If you believe your property has been misclassified, it is important to file a timely appeal so that it might be corrected. The Assessor is unable to correct the classification after the appeal period has ended.

If the use of your property changes, you should contact the Assessor’s Office via email or telephone. ([email protected] or 602-506-3406) Per ARS 42-12156, if there is a change in use, the owner or owner’s agent must inform the Assessor within 60 days of change. Furthermore, per ARS 42-12157, If an owner of property or the owner's agent intentionally provides false information to the Assessor, on an application form, or fails to provide notice of change in use, the property shall be subject to reclassification, immediately as being used for a nonagricultural use and shall be valued at its nonagricultural values.

If you are an out of state producer and have purchased an existing operation, you will need to submit an Agricultural Land Use Application and the relevant information (see new operation check lists) about your operation. The operation must currently be in production to qualify.

If you are starting a new business in the State, the operation must be in production for three years. After that time, you can submit an agricultural land use application, and the relevant information (see new operation check lists) about your operation. The operation must currently be in production to qualify.

Your property may be classified as agricultural in part. Only land and improvements dedicated to agriculture qualify for agricultural classification. Examples are:

• Your personal residence (home) is on the property; the house and an acre of the property are dedicated as residential use and do not qualify for agricultural classification.
• You have a 10-acre parcel of which 5 acres are dedicated to agricultural production, the remaining 5 acres is considered vacant land.
• You have a citrus grove with a boxing facility and a processing facility on site. The grove and the boxing facility will qualify as agricultural while the processing facility will be classified as commercial.
• You have; an equine boarding facility, a hay barn, hot walker, an arena for training and exercise, an arena with seating and shoots for roping events, RV hook ups for trailers and a small home for the trainer that lives on site. The boarding facility, hay barn, exercise/training arena, and the house for the trainer will be considered agricultural. RV hook ups, at a ratio of 2 hook ups per every 10 boarded animals can be considered Agricultural uses as well. The remainder of the property would be considered commercial because rodeo and camping activities are not qualifying agricultural uses.

Agritourism is defined in statute (ARS 3-111) as any activity that allows members of the general public, for recreational or educational purposes, to view, enjoy or participate in rural activities, including farming, ranching, historical, cultural, u-pick, harvest-your-own produce or natural activities and attractions occurring on property defined as agricultural real property pursuant to section 42-12151 if the activity is conducted in connection with and directly related to a business whose primary income is derived from producing livestock or agricultural commodities for commercial purposes.

The primary idea here is that the agritourism must be subservient to an agricultural operation. Property may be grant ed agricultural classification based on an agritourist use, however, an operation cannot be qualified based on the same use.

Qualifying equine activities as per ARS 42-12151 are land and improvements devoted to commercial breeding, raising, boarding or training equine, as defined in section 3-1201 or equine rescue facilities registered with the department of agriculture pursuant to section 3-1350.

Equine activities that do not qualify for agricultural classification are:

• Veterinary Services
• Equine Therapy Services
• Rodeo activities
• Transient boarding such as would be associated with veterinary services or therapy services
• Training of animals that are not intended for sale
• Resue operations not certified by the Department of Agriculture
• Trail Riding
• Horsemanship training
• Any other activity not specifically called out in statute as being agricultural activity

Per the Department of Revenue there are two types of grazing lands

• Range land: natural uncultivated land upon which natural vegetation and in some cases introduced vegetation provides forage for grazing
• Pastureland: irrigated cultivated land that is intentionally seeded to provide forage.

In either case, if the land cannot support the required number of animal units without supplemental feed, it is not grazing land. Such land may be considered high density if it meets the criteria of high yield use in a small area.