agricultural land; valuation

HB 2814 changes how agricultural land is valued for property tax purposes in Arizona. It requires county assessors to use only the income approach (based on average rental income from similar farms), excluding urban influences and depreciable improvements like buildings or permanent crops. The valuation calculates rental income using a five-year average of net cash rents, capitalized at 1.5 percentage points above the average farm loan interest rate. This directly affects Arizona farmers and county tax assessors who determine property tax bills for agricultural land.