Thanks for your comment, our Technical experts are working very hard to bring a lot of useful content to this site, in time for 2006 tax filing. They have done a superb job, and all the applaudes really goes to the IT System Adm team.
Now, let me first of all, wish you good luck on your investment in Arizona, the hottest investment in the country from what I understand.
To answer your question, the taxes would be deductible on schedule A, as this is raw land and no rental income is realised. Therefore, schedule E is not filed.
Note: Only the taxes paid are deductible, and Arizona state will send you a tax paid in 2006 correspondence/receipt, please ensure to include that amount on your tax return.