What is an Improvement on Possessory Rights (IPR) and how is it valued?
An IPR is a real property improvement owned by one party, but built on land owned by another. Examples are cabins on government owned land, or buildings built on land leased from the City of Tucson. Most IPR’s are valued the same way as real property, but placed on the personal property tax roll for the billing of taxes.
An Improvement on Possessory Rights situation takes place when the owner of the improvement is not the owner of the real property and usually when the improvement is located on un-patented land, a mining claim or state land. According to A.R.S. § 42-19003 and 42-19116, the improvement must be entered on the Unsecured Assessment Roll. Improvements may consist of, buildings, wells, appurtenances, stock tanks, and any other fixed property.
