Arizona Revised Statutes Title 42. Taxation § 42-13552. Deed restriction on guest ranch use; covenants; violation; penalty

A. As a condition for valuation under this article, the owner of a guest ranch shall record a deed restriction with the county recorder and file a copy of the restriction with the county assessor that restricts the property to use as a guest ranch for at least ten years. The deed restriction must be refiled as necessary to ensure that the deed restriction always applies for at least ten years. For initial valuation under this article, the deed restriction must be filed on or before August 31 of the year preceding the valuation.

B. The valuation of a guest ranch under this section  1 constitutes a covenant between the county assessor and the owner of the guest ranch that the use of the property will remain unchanged for the duration of the deed restriction.

C. The county assessor shall maintain a record of the value of the property determined under this article and the value of the property if it had not been determined under this article. The assessor shall maintain the record for at least ten years for use in computing the penalty under subsection D of this section if the property is converted to a different use in violation of the covenant.

D. If the property is converted to a different use in violation of the covenant, the owner shall notify the county assessor of the change in use. The county assessor shall add to the tax levied against the property on the next tax roll a penalty equal to the difference between the total amount of property taxes that would have been levied on the property for the preceding ten years or the period of time the property was valued under this section,  2 whichever period is shorter, if the property had not been valued under this section and the property taxes that were actually paid for the same period. The penalty due under this subsection shall be paid before the next property tax roll is completed and is enforceable and subject to the same penalties and interest as if the penalty were a tax levied against the property.