HOUSE BILL 2173

House Engrossed
property tax errors; electronic communications

State of Arizona
House of Representatives
Fifty-seventh Legislature
Second Regular Session
2026

CHAPTER 48

HOUSE BILL 2173

AN ACT
AMENDING SECTIONS 42-16252 AND 42-16254, ARIZONA REVISED STATUTES; RELATING TO PROPERTY TAX.

(TEXT OF BILL BEGINS ON NEXT PAGE)

1. Be it enacted by the Legislature of the State of Arizona:

2. Section 1. Section 42-16252, Arizona Revised Statutes, is amended

3. to read:

4. 42-16252. Notice of proposed correction; response; petition

5. for review; appeal; electronic communication

6. A. Subject to the limitations and conditions prescribed by this

7. article, if a tax officer determines that any real or personal property

8. has been assessed improperly as a result of a property tax error, the tax

9. officer shall send the taxpayer a notice of proposed correction at the

10. taxpayer's last known address by:

11. 1. Certified mail, return receipt requested, if correction of the

12. error results in an increase in the full cash value or change in legal

13. classification of the property.

14. 2. First class mail or, at the taxpayer's written request, delivery

15. by common carrier or electronic transmittal, if correction of the error

16. does not result in an increase in the valuation of the property.

17. B. The notice shall:

18. 1. Be in a form prescribed by the department.

19. 2. Clearly identify the subject property by tax parcel number or

20. tax roll number and the year or years for which the correction is

21. proposed.

22. 3. Explain the error, the reasons for the error and the proposed

23. correction of the error.

24. 4. Inform the taxpayer of the procedure and deadlines for appealing

25. all or part of the proposed determination before the tax roll is

26. corrected.

27. C. Within thirty days after receiving a notice of proposed

28. correction, the taxpayer may file a written response to the tax officer

29. that sent the notice to either consent to or dispute the proposed

30. correction of the error and to state the grounds for disputing the

31. correction. A failure to file a written response within thirty days

32. constitutes consent to the proposed correction. A taxpayer may file a

33. request for an extension of time within thirty days after receiving the

34. notice of proposed correction. The extension of time may not exceed

35. thirty days. If an extension is granted, any response that is not filed

36. within the extended due date constitutes consent to the proposed

37. correction.

38. D. The taxpayer may appeal any valuation or legal classification

39. issue that arises from the proposed correction as provided in this

40. section.

41. E. If the taxpayer consents to the proposed correction, or consents

42. to the proposed correction but disputes the proposed valuation or legal

43. classification as provided on the form prescribed by the department, the

44. tax roll shall be promptly corrected to allow property taxes to be levied

45. and collected in all subsequent tax years, but no additional tax, interest

1. or penalty may be imposed for the current tax year or any tax year

2. preceding the date of the notice of proposed correction.

3. F. If the taxpayer disputes the proposed correction or the proposed

4. valuation or legal classification, the tax officer shall meet with the

5. taxpayer or the taxpayer's representative in any case in which the

6. taxpayer has timely filed a written response to discuss the proposed

7. correction. If after the meeting the tax officer and the taxpayer reach

8. an agreement on all or part of the proposed correction, the tax officer

9. and the taxpayer shall each sign an agreement and the tax roll must be

10. promptly corrected to the extent agreed on.

11. G. If after the meeting the parties fail to agree on all or part of

12. the proposed correction, the tax officer shall serve a notice on the

13. taxpayer by certified mail within thirty days after the meeting date

14. advising the taxpayer that the tax roll will be corrected to the extent

15. agreed on. The taxpayer may file a petition on a form prescribed by the

16. department with the board of equalization within thirty days after the

17. date of the notice or it is barred. On receiving the petition, the board

18. shall hold a hearing on the disputed issues in the proposed correction

19. within thirty days and shall issue a written decision pursuant to the

20. board's rules.

21. H. A party that is dissatisfied with the decision of the board may

22. appeal the decision to court within sixty days after the date the board's

23. decision is mailed, but any additional taxes that are determined to be due

24. must be timely paid before delinquency for the court to retain

25. jurisdiction of the matter.

26. I. THE TAX OFFICER MAY ACCEPT AN ELECTRONIC RESPONSE TO A NOTICE OF

27. PROPOSED CORRECTION FROM A TAXPAYER. IF THE TAXPAYER ELECTS TO SUBMIT THE

28. RESPONSE ELECTRONICALLY, THE TAX OFFICER SHALL PROVIDE AN ACKNOWLEDGMENT

29. OR RESPONSE OF RECEIPT TO THE TAXPAYER AND MAY PROVIDE RELATED

30. COMMUNICATIONS ELECTRONICALLY, EXCEPT FOR ANY NOTICE THAT IS REQUIRED TO

31. BE SERVED BY CERTIFIED MAIL PURSUANT TO SUBSECTION G OF THIS SECTION. THE

32. TIME LIMITS AND PROCEDURAL REQUIREMENTS THAT APPLY TO WRITTEN /

33. COMMUNICATIONS UNDER THIS SECTION APPLY TO ELECTRONIC COMMUNICATIONS

34. ALLOWED UNDER THIS SUBSECTION.

35. Sec. 2. Section 42-16254, Arizona Revised Statutes, is amended to

36. read:

37. 42-16254. Notice of claim; response; petition for review;

38. appeal; electronic communication

39. A. If a taxpayer believes that the taxpayer's property has been

40. assessed improperly as a result of a property tax error, the taxpayer

41. shall file a notice of claim with the appropriate tax officer, either

42. personally, electronically or by certified mail, as follows:

43. 1. If the alleged error concerns the valuation or classification of

44. property by the county assessor, the notice shall be filed with the

1. assessor. On receiving the notice, the assessor shall immediately

2. transmit a copy to the department.

3. 2. If the alleged error concerns the valuation or classification of

4. property by the department, the notice shall be filed with the department.

5. 3. If the alleged error concerns the imposition of any tax rate,

6. the notice shall be filed with the county board of supervisors. The clerk

7. of the board of supervisors shall notify each affected taxing entity to

8. allow the entity to file a response to the claim.

9. B. The notice shall:

10. 1. Be in a form prescribed by the department.

11. 2. Clearly identify the subject property by tax parcel number or

12. tax roll number and the year or years for which the correction is

13. proposed.

14. 3. State the claim and the evidence to support the claim for

15. correcting the alleged error.

16. C. Within sixty days after receiving a notice of claim, the tax

17. officer may file a written response to the taxpayer to either consent to

18. or dispute the error and to state the grounds for disputing the error. A

19. failure to file a written response within sixty days constitutes consent

20. to the error, and the board of supervisors shall direct the county

21. treasurer to correct the tax roll on the taxpayer's written demand

22. supported by proof of the date of the notice of claim and the tax

23. officer's failure to timely dispute the error.

24. D. If the tax officer disputes the error, the tax officer shall

25. notify the taxpayer of a time and place for a meeting between a

26. representative of the tax officer and the taxpayer or the taxpayer's

27. representative within sixty days to discuss the basis for the dispute.

28. E. If, after the meeting, the parties agree on all or part of the

29. notice of claim, the tax roll must be corrected promptly to the extent

30. agreed on and any taxes that have been overpaid shall be refunded pursuant

31. to section 42-16259.

32. F. If the parties fail to agree on all or part of the notice of

33. claim, the taxpayer may file a petition with the board of equalization on

34. a form prescribed by the department and shall send a copy to the tax

35. officer by certified mail. The petition must be filed with the board

36. within ninety days after the date of the meeting or it is barred. On

37. receiving the petition, the board shall hold a hearing on the disputed

38. issues in the notice of claim within thirty days and shall issue a written

39. decision pursuant to the board's rules.

40. G. A party that is dissatisfied with the decision of the board may

41. appeal the decision to court within sixty days after the date the board's

42. decision is mailed, but any additional taxes that are determined to be due

43. must be timely paid before delinquency for the court to retain

44. jurisdiction of the matter. In addition, in order for a taxpayer to

45. recover a refund for taxes paid in a preceding tax year as a result of an

1. error, all taxes that were levied and assessed against the property for

2. the tax year must be paid before delinquency in order for the court to

3. retain jurisdiction of the matter.

4. H. If a tax officer accepts electronic notice of claim from a

5. taxpayer, the tax officer shall provide an electronic acknowledgement of

6. receipt to the taxpayer.

7. H. THE TAX OFFICER MAY ACCEPT AN ELECTRONIC NOTICE OF CLAIM FROM A

8. TAXPAYER. IF THE TAXPAYER ELECTS TO SUBMIT THE NOTICE OF CLAIM

9. ELECTRONICALLY, THE TAX OFFICER SHALL PROVIDE AN ACKNOWLEDGMENT OR

10. RESPONSE OF RECEIPT TO THE TAXPAYER AND MAY PROVIDE RELATED COMMUNICATIONS

11. ELECTRONICALLY, EXCEPT FOR ANY COMMUNICATION THAT IS REQUIRED TO BE SERVED

12. BY CERTIFIED MAIL PURSUANT TO SUBSECTION F OF THIS SECTION. THE TIME

13. LIMITS AND PROCEDURAL REQUIREMENTS THAT APPLY TO WRITTEN COMMUNICATIONS

14. UNDER THIS SECTION APPLY TO ELECTRONIC COMMUNICATIONS ALLOWED UNDER THIS

15. SUBSECTION.

APPROVED BY THE GOVERNOR APRIL 13, 2026.

FILED IN THE OFFICE OF THE SECRETARY OF STATE APRIL 13, 2026.