PICOR Connect | Trends in Commercial Real Estate

Chamber-Written Bill Protecting Property Owners is Signed Into Law

Posted on Fri, Jun 14, 2019

The Tucson Metro Chamber wrote the legislative bill SB 1248: property taxes; valuation; property modifications, which was sponsored by Arizona State Senator Vince Leach. Governor Doug Ducey signed the bill on June 7, 2019.

In late 2018, the Tucson Metro Chamber met with commercial brokers and property owners who had expressed frustration after they received considerable increases on their assessed property value. Chamber staff took action and quickly drafted the legislation, identified a sponsor and achieved ultimate success when the Governor signed SB 1248 into law.

Rule_B_Property_Tax_SB1248

This piece of legislation addresses what is known as Rule B, put what was a basic guideline into state statute, providing protection to property owners when they have made improvements to property. The second part of the bill raised the exemption amount from 10 percent to 15 percent—a staggering 50-percent increase in the trigger point for Rule B application. This will save property owners throughout Arizona millions in unexpected property tax increases.

Senator Leach commented, “It was great to work with the Tucson Metro Chamber and many statewide stakeholders wanting to bring statutory consistency to the application of Rule B, which gives commercial and residential property owners room to make modifications (up to 15% LPV) to property without major tax increases.”

Brandon Rodgers, Principal for Industrial Properties at Cushman & Wakefield | PICOR, said, “On behalf of the professional real estate owners, managers and brokerage community here in Tucson, I would like to thank the Tucson Metro Chamber, and Robert Medler specifically, the Arizona Legislature and Gov. Ducey for their advocacy of an important issue that had been plaguing our local commercial real estate market.”

Amber Smith, Tucson Metro Chamber’s President & CEO, stated, “The Chamber will continue to advocate on behalf of the business community to find solutions that break down regulatory barriers and lead to greater economic vitality for our region.”

About the Tucson Metro Chamber

The Tucson Metro Chamber’s mission is to champion an environment where your business thrives, and our community prospers. The Chamber is a member-based business advocacy and community development organization that represents more than 1,500 businesses, employing more than 160,000 employees in the greater Tucson area.

Topics: Tucson, Commercial real estate, Investment property, Finance