A.R.S. tit. 42 ch. 19 — Arizona Revised Statutes Title 42 Chapter 19 — Personal Property

42-19001. Powers of county assessor In administering this chapter the assessor has the same authority that is granted to county assessors under chapters 13 and 15 of this title and all other authority that is granted to county assessors under any law of this state and that does not conflict with this chapter. 42-19002. Personal property tax roll A. The county assessor shall enter the valuation of personal property on the personal property tax roll. B. The personal property tax roll shall include: 1. The name and residence of the person who owns the personal property or who possesses the property and reports the property for taxation, if the person is known. If the name of the owner of the property is not known, the property shall be listed, valued and entered on the roll to "unknown owner". 2. A description of the property sufficient to identify it. 3. The location of the property. 4. The rate of taxation levied against the property. C. The roll shall be in a proper format for extending the tax levied on the property. D. The county assessor may administratively designate on the roll which property is subject to section 42-17153, subsection B and to section 42-19117 when forwarding the roll to the board of supervisors. 42-19003. Improvements on unpatented land, mining claims or state land; exemption A. Improvements, appurtenances, wells, stock tanks and any other fixed property that is located on unpatented land, a mining claim or state land not secured by patented real property: 1. Shall be valued as personal property. 2. Are subject to sale as provided by this chapter. B. A description sufficient to identify the property shall be entered on the personal property tax roll of the county. 42-19003.01. Computers and equipment; hardware; software; definition A. Except as provided by subsection C of this section, personal computers and general purpose computers used in a trade or business shall be valued as personal property. B. Operating system software necessary to enable the operation of personal computers, general purpose computers and peripheral equipment shall be valued as a part of the computer on which it is installed. C. All other software, other than operating system software, whether it is canned or customized for a specific application by a personal computer or a general purpose computer, shall not be valued as personal property. D. For the purposes of this section, "operating system software" means the collection of software that directs the computer's low-level operations, controlling and scheduling the execution of application programs and managing the low-level operation of storage, input, output and communication resources. 42-19004. Property in transit and transient property A. Personal property that is in transit through a county shall be assessed in the county where the owner is domiciled. B. Transient property that is used in business or commerce in this state shall be assessed in the county where it is found. 42-19005. Property leased or rented from inventory A. Subject to section 42-19103, personal property that is periodically leased or rented from the inventory of retailers or wholesalers shall be assessed in the same manner as other personal property included in class one pursuant to sections 42-12001 and 42-15001. B. The department shall: 1. Establish the method of determining the valuation of such property. 2. Prescribe all forms and reports required under this section. C. Each retailer and wholesaler that leases or rents personal property from its inventory shall file an affidavit of particulars with the county assessor not later than the tenth day of each month for the preceding month's activity. D. This section does not apply to property that is owned and held by persons primarily engaged in the business of renting personal property. 42-19006. Notice of valuation A. On or before August 30 the assessor shall mail a notice of valuation, in the form prescribed by the department, to either: 1. The owner of the personal property, if known. 2. The person in whose possession it is found at the time of valuation. B. The owner or person in possession of the property may petition the assessor for review pursuant to section 42-19051. 42-19007. Transmission of personal property valuation to county treasurer A. On or before August 25 the assessor shall transmit the personal property valuations to the county treasurer. B. The personal property tax roll shall contain all valuations of personal property made by the assessor since the last preceding personal property tax roll. 42-19008. Violation; classification A person who violates any provision of this article is guilty of a class 3 misdemeanor. 42-19051. Administrative review of valuation or classification by assessor A. The owner of property that is valued by the assessor or the person in whose possession it is found may appeal to the assessor within thirty days after the date the notice was delivered by filing a petition with the assessor on a form prescribed by the department. The petition shall set forth in writing: 1. The owner's opinion of the value or legal classification of the property. 2. Substantial information that justifies the opinion of value or legal classification in order for the assessor to consider the information for the purpose of basing a change in the valuation or legal classification. B. The assessor shall rule on each petition within twenty days after it is filed. C. The notice provided under this section shall be in the same manner as prescribed in section 42-16056. D. If the request of the petitioner is denied, in whole or in part, the assessor shall deliver to the petitioner written notice of the grounds for refusing to grant the request contained in the petition. 42-19052. Appeal from assessor A. A person who appeals to the assessor pursuant to section 42-19051 may appeal to: 1. The county board of equalization, if a county board has been established in the county, within twenty days after the date of the assessor's notice of refusal or decision. The appeal shall be in the same manner as prescribed by chapter 16, article 3 of this title. 2. The state board of equalization, if a county board has not been established in the county, within twenty days after the date of the assessor's notice of refusal or decision. The appeal shall be in the same manner as prescribed by chapter 16, article 4 of this title. B. Any party that is dissatisfied with the decision of the board may appeal the decision to court as prescribed in chapter 16, article 5 of this title. 42-19101. Extension and levy of tax The rate of tax to be extended and levied against the personal property is the rate established pursuant to section 42-17151 in the taxing jurisdiction where the property is located. 42-19103. Proration of tax on property that is leased or rented from inventory The taxes that are levied on personal property that is periodically leased or rented from the inventory of retailers or wholesalers assessed pursuant to section 42-19005 shall be prorated by three hundred sixty-fifths to be determined by the number of days the property is leased or rented. 42-19106. Lien of taxes A. The tax that is levied against personal property is a lien against the property and is prior and superior to any other liens of every kind and description regardless of when another lien attached. B. The lien shall not be discharged until the taxes are paid or the title to the property vests in a purchaser of the property for taxes. 42-19107. Unlawful sale, transfer or removal of personal property; classification A. It is unlawful for the owner, a lienholder, a conditional vendor or any other person to knowingly sell or transfer personal property or remove it from its location until the taxes on the property are paid. B. A person who violates this section is guilty of a class 1 misdemeanor. Any fine collected under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. 42-19108. Issuance of tax bill A. After personal property tax becomes delinquent, the county treasurer shall make and deliver to the sheriff a tax bill directing the sheriff to seize and sell as much of the personal property as is necessary to pay the taxes, interest and costs of seizure and sale. The treasurer: 1. May issue the tax bill within thirty days after the first installment authorized by section 42-18052 becomes delinquent. 2. Shall issue the tax bill within thirty days after the second installment becomes delinquent or after the entire amount is delinquent under section 42-18052, subsection C. B. The tax bill may be in the following form: Tax bill ______________________ county, Arizona In the matter of the delinquent personal property tax assessed against ______________________. To the sheriff of _______________________ county, Arizona: You are commanded to seize and sell the following personal property: (Description) Or as much of it as is necessary to pay the amount of $___________, constituting delinquent taxes assessed against the property, plus ____% interest on that amount from (Date) , as prescribed by law, and the cost of sale. This tax bill is your warrant of authority to seize the property, make the sale and make and deliver a bill of sale to the purchaser of the property. You are authorized to seize and sell the property in any county where the property may be found. __________________________________ __________________ County treasurer (Date) 42-19109. Authority to seize and sell personal property for delinquent taxes A. The tax bill is the sheriff's warrant of authority to seize and sell the personal property as required by this article. B. The sheriff's authority to seize and sell personal property extends to all counties in the state. Except for wilful misconduct, the sheriff is not liable for wrongfully seizing or selling property as directed by this article. C. The sheriff shall charge the same fees for seizure and sale of personal property for taxes as provided on executions and other actual expenses that are not provided for under executions. 42-19110. Seizure of property A. After receiving a tax bill the sheriff shall: 1. Seize the property wherever it is found. 2. Advertise the property for sale at public auction for cash within one year after the date of the seizure. B. Under authority of the tax bill, the sheriff: 1. Shall seize the property. 2. May enter any building, dwelling, grounds or other place or enclosure in order to seize the property. 3. May call any citizen to aid the sheriff if necessary. C. If the property is located in a manner that requires a judicial warrant to achieve entry, any magistrate may issue the warrant on a showing that probable cause exists to believe that the property described in the tax bill is so located. 42-19111. Notice of sale A. After seizing the property the sheriff shall give notice of the time, place and terms of sale by: 1. Posting three notices in the county where the property is to be sold. One of the notices shall be posted at the place where the property is located, and the other two shall be posted in locations in the county that are commonly and regularly observed by the general public. 2. Either personal service on the owner of the property or mailing a copy of the notice to the owner by certified mail, return receipt requested. If notification under this paragraph cannot be completed because the owner is unknown or the owner's address is unknown, the sheriff shall publish notice in a newspaper of general circulation in the county in which the unsecured property was seized. If the notice is published in a weekly newspaper, the notice must appear once each week for two consecutive weeks. If the notice is published in a daily newspaper, the notice must appear six consecutive times. In either case, the last publication must appear at least three weeks but not more than four weeks before the date of the sale. B. The notices shall: 1. Describe the property to be sold. 2. State the name of the owner or person to whom the property is assessed. 3. State the place and time of holding the sale. 4. State the amount of taxes for which the property is to be sold. C. The sheriff may not sell personal property under section 42-19113 until at least three weeks after the notice is served on the property owner, after receiving confirmation that the owner received the notice by certified mail or after the last date of notice by publication, whichever method the sheriff used under subsection A, paragraph 2 of this section. D. If a court determines that a sheriff failed to give notice as required by this section: 1. Any sale of the personal property by the sheriff is void. 2. The owner is entitled to redeem the property as provided by this article on paying the outstanding taxes, interest and costs associated with collecting the taxes. 3. The court may award fees and other expenses associated with the adjudication to the owner as provided by section 12-348. 42-19112. Redemption A. The owner of personal property, a lien claimant or a conditional vendor may redeem the property at any time before the actual sale by the sheriff by paying to the sheriff the taxes, interest and costs. B. The right to redeem terminates after the property is sold. 42-19113. Sale A. The sheriff shall offer the personal property, or as much of the property as is necessary to pay the taxes, interest and costs of sale, at a public sale held at the time fixed in the notices. B. Any person, including the county, may bid at the sale, and the property shall be sold to the highest bidder for cash. C. If no bid is made for the property in an amount sufficient to pay the taxes, the sheriff may execute and deliver a bill of sale conveying the title of the property to the highest bidder, together with the property. 42-19115. Return of sale; distribution of proceeds A. The sheriff shall make return of the tax bill on or before the tenth day of the month following the sale and, if the property is sold to a person other than the county, shall pay to the county treasurer the total amount of all monies received. B. The treasurer shall distribute the proceeds to the proper funds. The costs shall be placed in the county expense fund. Any balance remaining with the treasurer after payment of the taxes, interest and costs shall be paid to the owner of the personal property who was dispossessed by the sale. 42-19117. Tax as debt against property owner; action to collect tax A. The tax on personal property is a debt against the owner to whom the property is assessed and against the owner's successors and assigns. B. At the request of the county treasurer, the county attorney shall bring an action against the owner to recover all or any part of the tax. C. If the county treasurer or sheriff is unable to find sufficient personal property to pay the tax and costs that are assessed to the owner, and the owner or the owner's successors or assigns refuses or fails to pay the tax or to surrender property sufficient for that purpose, the county treasurer shall bring an action in court pursuant to section 12-163, subsection B, against the owner and the owner's successors and assigns, or any of them, for collection of the tax and costs. D. Personal judgment may be rendered against any or all defendants. 42-19118. Clearing uncollectible tax A. If the county treasurer, sheriff and county attorney are unable to locate both the personal property on which taxes have been assessed and the person owning the property or the owner's successors or assigns, after diligent search by the sheriff, the tax may be declared uncollectible pursuant to this section. B. The county treasurer shall: 1. Prepare and submit to the board of supervisors a certificate of clearance stating: (a) The name of the person who is liable for the tax. (b) A description of the property. (c) The tax roll number. (d) The delinquent date of the tax. (e) The year and the amount of tax, interest and penalty involved. (f) The extent of any lien on the property. 2. Submit an affidavit from the sheriff stating that after a diligent search both the property and the person owning the property or the person's successors or assigns have not been located. C. On being satisfied that the tax is uncollectible, the board of supervisors may approve the certificate of clearance. D. On approval of the certificate, the treasurer shall: 1. Delete from the treasurer's records the tax, interest and penalty covered by the certificate. 2. Make a notation in the records that the deletion was made pursuant to the approval of a certificate of clearance together with the number and date of the certificate. E. If the property or the person who owns the property or the owner's successors or assigns are located after the approval of the certificate of clearance, the county treasurer may reinstate and collect the taxes, penalties and interest as if there had been no approval of the certificate. 42-19151. Definition of mobile home In this article, unless the context otherwise requires, "mobile home" means a structure that is transportable in one or more sections including the plumbing, heating, air conditioning and electrical systems that are contained in the structure and that, when erected on site, is either of the following: 1. More than eight feet in body width, thirty-two feet or more in body length and built on a permanent chassis. 2. Regardless of the size, used as a single family dwelling or for commercial purposes with or without a permanent foundation. 42-19152. Taxation of mobile homes A. Each mobile home is subject to ad valorem property tax to be assessed and collected in the same manner and at the same time as other personal property that is taxable under this chapter. B. The department shall establish the method of determining the valuation of mobile homes that are taxable under this chapter to be set by the county assessor. 42-19153. Application and exemptions This article does not apply to: 1. A mobile home with respect to which an affidavit of affixture has been recorded pursuant to section 42-15203 and that has been placed on the real property tax roll. 2. Any trailer that is eight feet or less in width and less than thirty-two feet in length and that is not used as a place of residence or for a commercial purpose. A license tax in lieu of ad valorem property taxes is assessed on those trailers in the same manner as on other vehicles. 3. A mobile home that is properly licensed in another state and that is owned by a bona fide tourist in this state. This article does apply to a mobile home or trailer that is located in this state and that is owned by a resident of this state. For the purposes of this paragraph, "resident" includes: (a) A person, except a tourist or out-of-state student, who owns, leases or rents a dwelling in this state and occupies it as a place of residence. (b) A person who, regardless of domicile, remains in this state for a consecutive period of six months or more. (c) A person who engages in a trade, profession or occupation in this state or who accepts employment in this state in other than seasonal agricultural work. (d) A person who places a child in a public school without paying nonresident tuition. (e) A person who declares that the person is a resident of this state for the purpose of obtaining or paying at resident rates a state license or tuition fees at an educational institution that is maintained by public monies. (f) Any individual, partnership, company, firm, corporation or association that maintains a main office, a branch office or warehouse facilities in this state and that bases and operates motor vehicles in this state. 42-19154. Landowner's register of mobile homes and monthly report; violation; classification A. If a person permits a mobile home to be placed on land that the person owns, possesses or controls in a manner that permits the mobile home to be occupied as a dwelling or sleeping place for one or more persons for a period of thirty days or more, the person shall keep a register containing information that is required by the department. B. The department shall prescribe, and the county assessor shall furnish, forms for maintaining the register. A copy of the information in the register for each month shall be sent to the county assessor within ten days after the month covered by the report. C. A person who knowingly fails to maintain the register or make the report required by this section is guilty of a class 2 misdemeanor. 42-19155. Unlawful sale or removal of mobile home; classification A. It is unlawful to knowingly move or sell a mobile home on which applicable ad valorem taxes imposed under this chapter have not been paid and are delinquent. B. A person who violates this section is guilty of a class 1 misdemeanor. Any fine collected under this subsection shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. 42-19156. Review and appeal A person who is dissatisfied with the valuation of the person's mobile home may have the valuation reviewed, and may appeal from the decision resulting from the review, in the same manner as provided by law for review and appeal under this chapter. 42-19157. Collection of delinquent taxes A. Except as otherwise prescribed by this article, if a person who is liable for paying tax under this article evades or is delinquent in paying the tax, the tax shall be collected in the manner and by the officers prescribed by this chapter for collecting delinquent taxes on personal property. B. Notwithstanding any other law, for a mobile home for which an affidavit of affixture has not been recorded pursuant to section 42-15203, that is not placed on the real property roll and that is the owner's primary residence, the delinquent tax may be collected pursuant to subsection A of this section only after both of the following occur: 1. The tax has been delinquent for a period of one year. 2. The person liable for paying the tax has not redeemed the property within six months after the end of the one-year period prescribed in paragraph 1 of this subsection. C. For delinquent tax report purposes, the county treasurer and the officers prescribed by this chapter shall use the method and procedures of identifying mobile homes as prescribed by the department of transportation. 42-19158. Notice of intent to seize mobile home in possession of person not listed on tax bill A. If the sheriff is directed to seize and sell a mobile home that is found to be in the possession of a person who is other than the person listed on the tax bill issued by the county treasurer and who presents evidence of having purchased the mobile home from the person listed on the tax bill after the taxes became delinquent, the sheriff shall not seize the property. Instead, the sheriff shall: 1. Issue a notice of intent to seize the mobile home in five working days. 2. Advise the owner of the application procedure to extend the payment due date as provided in section 42-19160. B. This section does not apply if the county treasurer or sheriff has reason to believe that the mobile home is in danger of being removed from the state. 42-19159. Owner's action to collect delinquent tax from previous owner A. A person who purchases a mobile home and who subsequently pays taxes that were imposed by this article on the mobile home and that were levied and became delinquent when the mobile home was the property of a previous owner may bring an action against the previous owner for the amount of the delinquent taxes paid. B. If the purchaser prevails, the purchaser shall recover damages including reasonable attorney fees and treble the amount of delinquent taxes paid. C. This section does not apply if the purchaser has specifically assumed the delinquent tax liability in writing, signed by the purchaser and seller, and the delinquent taxes assumed are correctly stated by year and amount due. 42-19160. Delinquent taxes accruing under previous ownership A. If delinquent taxes on a mobile home were levied and became delinquent when the mobile home was the property of a previous owner: 1. The county treasurer, on application and payment of a five dollar fee by the current owner, shall extend the due date for paying the taxes for one year with no interest and penalty. 2. Any accrued interest or penalty due on the delinquent tax amount shall be exempted from payment by the current owner. B. Delinquent taxes that are extended under this section become due and payable immediately if the mobile home is sold. C. This section does not apply to a permanently affixed mobile home that is assessed as real property pursuant to chapter 15, article 5 of this title.