Arizona Tax Court Decides Cochise County’s Agricultural Property Tax Valuation Method Violated Statute

The Arizona Tax Court decided that the valuation method used by the Cochise County Assessor to determine the full cash value of taxpayer’s agricultural properties, including nut orchards and vineyards, violated A.R.S. Section 42-13101 which requires that agricultural land be valued using only the income approach without allowance for urban or market influences. The Court determined that the assessor improperly valued the orchard trees and grapevines as separate “permanent crop” improvements rather than as part of the agricultural land. [A & P Ranch Ltd. v. Cochise County, Ariz. T.C., No. TX 2022-000423, 06/17/24]

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