Following a trial held in March of this year, the Arizona Tax Court issued its ruling regarding the full cash value of grazing land in Yavapai County, Arizona. The case was brought by several cattle ranchers (“Ranchers”) who claimed the County Assessor had illegally increased the value of their property by more than 300% from $7.56 per acre to $25 per acre.
Under Arizona law, the value of grazing land is determined pursuant to a statutory formula based on the income approach to value. At issue was the average annual net cash rental value of grazing leases. The Tax Court ruled in favor of the Ranchers.
The Assessor testified at trial that her office had relied on a statistical survey performed by the Arizona Department of Revenue (“ADOR”), which ADOR later told her could not be used to value individual properties. Specifically, the Court found: “Based on the evidence presented at trial, the Court finds the ADOR study lacks foundation and, consistent with