Valuation notices are mailed to property owners annually. The notification outlines the value the county assessor has established for your property for the current tax year and the future tax year.
Please examine the notice carefully. The information could be incorrect, however it can be changed. Here is a guide to help you understand the information.
Limited vs. Full Cash Value
You will notice that there are two sets of numbers on your notice. The first set of numbers on your notice is the Limited Property Value and Primary Assessed Value calculations. These amounts determine the primary property taxes. Primary taxes include state, county, city taxes, school districts taxes and community college districts operation and maintenance taxes. The Limited Value is based on a calculation described in the statutes and was developed to limit the amount of tax increase due to inflationary factors, and cannot be appealed. The Limited Value never exceeds the Full Cash Value.
The second set of numbers on your notice, Full Cash Value, determines the secondary property taxes. Secondary taxes are to cover bonded indebtedness and voter approved districts. Full Cash Value is the value of your property as determined by the county assessor. The number is derived from construction cost data, and comparable sales information. If you feel the Full Cash Value exceeds market value, you have the right to petition the assessor for a review of your assessment.
Classifications and Assessment Ratios
All property in Arizona is classified according to its use. Currently there are 9 classes of property with 48 sub-classes. Each class of property has an assessment ratio that is determined by the Arizona Legislature. The nine property classes are:
- Owner-Occupied Residential
- Railroad/Private Car/Flight Property
- Non-Commercial Historic/Foreign Trade Zone/Enterprise Zone
- Commercial Historic
- Rental-Residential Historic
- Athletic/Recreational/Entertainment/Artistic/Cultural/Convention on Government Property.
If the property is not classified correctly, or if you disagree with the classification, you should file an appeal.
The assessed value is determined by multiplying the Limited Value or Full Cash Value by the assessment ratio. The assessed value is the amount used to calculate primary and secondary taxes from.