(Effective 01-01-1999)

I. Eligibility

To be eligible for agricultural classification, property must meet specific criteria in the following areas:

1. Use
2. Expectation of Profit
3. Functional Contribution
4. Filing Requirements

1. Use
   1. The primary use of the land must be agricultural. Ownership alone does not qualify property for agricultural classification.
2. Expectation of Profit
   1. There must be a reasonable expectation of operating profit, exclusive of land cost, from the agricultural use of the property.
3. Functional Contribution
   1. If the property is non-contiguous, the non-contiguous parcel must be managed and operated on a unitary basis and each parcel must make a functional contribution to the agricultural use of the property.
   2. Non-contiguous parcels in general must be fenced, have an independent water source and have ingress and egress.
4. Filing Requirements
   
   The owner or the owner’s designated agent must file a completed agricultural use application before the property may be classified as agricultural. This form must be filed with the Assessor’s Office on the following occasions.
   1. Applying for the first time on a piece of property.
   2. Newly created parcels (parcels either split or combined) regardless of the parent parcel’s status.
   3. If the parcel changes ownership.

**** If all or part of the property ceases to qualify as agricultural property, the person who owns the property at the time of change shall notify the Assessor with sixty (60) days after the change (A.R.S. 42-12156)

Penalties

The penalties for filing false information of failing to notify of change in use include:

1. The property shall be reclassified immediately as being used for a non- agricultural use and shall be valued at its non agricultural full cash value.
2. The owner is liable for the additional taxes on the difference between the non- agricultural full cash value and the full cash 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 (25) percent of the additional taxes.

Grazing Land:

Definition per A.R.S. 42-12151

1. Grazing land with a minimum carrying capacity of forty (40) animal units and containing an economically feasible number of animal units.

   Animal Units are as follows:

   • One mature beef animal of 1,000 pounds
   • One and one-quarter horses***
   • Five goats
   • Five sheep

*** Only working ranch horses can count as animal units. Pleasure, racing, breeding, boarding, or any other horses kept for commercial purposes do not count as animal units.

Policy:

1. No leased parcel under twenty (20) acres (unless established water supply) will be classified as agricultural grazing. A smaller parcel does not contribute to the overall operation.
2. A copy of all current leases must be on file with the Assessor’s Office and be accompanied by a letter of intent from the producer indicating the expectation of profit and the functional contribution the leased parcel will donate. The agricultural lease statement is also a prerequisite for leased parcels to qualify for agricultural classification.
3. Leased parcels need to have a statement from the owner that they are not running a livestock operation on the same parcels already leased to another individual, corporation or rancher.

Field Crops:
(Dry Farms)

Definition per A.R.S. 42.12151

Cropland in the aggregate of at least twenty (20) acres.

Policy:

1. No leased parcels under ten (10) acres will be classified as agricultural field crops.
2. A copy of all current leases must be on file with the Assessor’s Office and be accompanied by an agricultural lease statement.

Permanent Crops:
(Including Alfalfa)

Definition per A.R.S. 42.12151

An aggregate ten (10) or more gross acres of permanent crops.

1. Plants or trees which produce a crop and are perennial.

Policy:

1. No leased parcels under five (5) acres will be classified as agricultural permanent crops.
2. A copy of all current leases must be on file with the Assessor’s Office and be accompanied by an agricultural lease statement.

High Density

No minimum acreage.

Intensive use through comparatively large amounts of labor or capital per unit of land.