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adds nearly $1,000,000 in estimated tax revenue to local school districts throughout

Assessor Petersen’s 2017 BPP Canvass of Medical Marijuana Facilities. adds nearly $1,000,000 in estimated tax revenue to local school districts throughout Maricopa County. Duty to Report & Late Penalty. ARS 42-15053

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adds nearly $1,000,000 in estimated tax revenue to local school districts throughout

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  1. Assessor Petersen’s 2017 BPP Canvass of Medical Marijuana Facilities adds nearly $1,000,000 in estimated tax revenue to local school districts throughout Maricopa County

  2. Duty to Report & Late Penalty • ARS 42-15053 Each person shall prepare and deliver to the assessor a correct report of property on or before April 1 of each year • ARS 42-15055 (D) Failure to report shall add an additional 10% to the value of the property for the tax year

  3. No Explicit Exemption per ARS for Medical Marijuana (MM) Operations from Real or Business Personal Property (BPP) reporting or valuation

  4. ARS cites many exemptions: • 42-11102. Exemption for government property; application of procedural provisions • 42-11103. Exemption for government bonded indebtedness; application of procedural provisions • 42-11104. Exemption for educational and library property • 42-11105. Exemption for health care property • 42-11106. Exemption for apartments for elderly or handicapped residents • 42-11107. Exemption for institutions for relief of indigent or afflicted • 42-11108. Exemption for grounds and buildings owned by agricultural societies • 42-11109. Exemption for religious property; affidavit • 42-11110. Exemption for cemeteries • 42-11111. Exemption for property of widows, widowers and disabled persons • 42-11112. Exemption for observatories • 42-11113. Exemption for land and buildings owned by animal control and humane societies • 42-11114. Exemption for property held for conveyance as parkland; recapture • 42-11115. Exemption for property held to preserve or protect scientific resources • 42-11116. Exemption for property of arts and science organizations • 42-11117. Exemption for property of volunteer fire departments • 42-11118. Exemption for social welfare and quasi-governmental service property; qualifying activities • 42-11119. Exemption for property of volunteer roadway cleanup and beautification organizations • 42-11120. Exemption for property of veterans' organizations • 42-11121. Exemption for property of charitable community service organizations • 42-11122. Exemption for trading commodities • 42-11123. Exemption for animal and poultry feed • 42-11124. Exemption for possessory interests for educational or charitable activities • 42-11125. Exemption for inventory, materials and products • 42-11126. Exemption for production livestock and animals; definition • 42-11127. Exempt personal property • 42-11128. Exemption for personal property in transit; violation; classification • 42-11129. Exemption for property of fraternal societies • 42-11130. Exemption for public library organizations • 42-11131. Exemption for low income Indian housing; definitions • 42-11132. Property leased to an educational institution • 42-11132.01. Property leased to a church, religious assembly or religious institution • 42-11133. Exemption for low income housing projects

  5. Medical Marijuana (MM)Business Personal Property (BPP)ARS § 42 - 19002 Type FacilityNumber Dispensary 55 Cultivation 33 Duel (Dispensary and Cultivation) 9 Certification 12 Total 109 Only11 (10%)locations reported BPP in 2017.

  6. BPP for Dispensary Dispensary Only Non Report (55 accounts) Average Sq. Ft. 2,500, unless known • MC Estimate $30/sq. ft. $75,000 FCV + 10% late penalty = $82,500 FCV • This type of entity should include: Retail FF&E, Office FF&E, Extra Security, Safe Room, Cameras, Cash Register, POS System, Leasehold Improvements, Additional HVAC and Ventilation Equipment, Shipping & Labeling Supplies, Shelving & Display Cases, Computer Equipment, Signage, Phone System

  7. BPP for Cultivation Location Cultivation Only Non Report (33 accounts) • Average square footage 15,000, unless known • MC Estimate $45/sq. ft. $675,000 FCV + 10% late penalty = $742,500 FCV • This type of entity should include these types of assets Extra Security, Safe(s), Air Scrubbers, Commercial Greenhouse Equipment, Extra AC, Co2 Emitters, De-humidifiers, RO Water & Nutrient System, Commercial Kitchen, Extraction Equipment, Drying Equipment, Lab Equipment, Vacuum Ovens

  8. BPP for Dual Location Dual Facility (Dispensary * Cultivation) Non Report 9 facilitates • Average Sq. Ft. 22,000, unless known • MC Estimate $45/sq. ft. = $990,000 FCV + 10% late penalty = $1,089,000 FCV

  9. BPP for Certification There are 12 identified certification clinics • Average Sq. Ft. 2,500, unless known • Valued at $20/sq. ft. = $50,000 FCV + 10% Late Penalty = 55,000 FCV

  10. No Explicit Exemption per ARS for Medical Marijuana • ARS 42-11127 • All accounts that reported received the 2017 statutory exemption: $159,498, of full cash value • One exemption per owner – One owner several locations will receive one exemption of up to $159,498

  11. 2017 BPP Statistics 520 Mailings - 45,839 accounts 520 Returns - 43,466 accounts 285 new accounts returned for first time 10% Penalty issued – 2,922 accounts

  12. Assessor Petersen’s 2017 BPP Canvass of Medical Marijuana Facilities adds nearly $1,000,000 in estimated tax revenue to local school districts throughout Maricopa County

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