Property Tax

What is Full Cash Value? Full Cash Value (FCV) is used to compute secondary taxes, which may consist of bonds, budget overrides, and special districts such as fire, flood control, and other limited purpose districts. FCV is a reflection of the market value of your property and consists of land and improvements.

What is Limited Property Value? Limited Property Value (LPV) is used to compute primary taxes for the maintenance and operation of school districts, cities, community college districts and counties. The LPV is calculated according to a statutory formula mandated by the Arizona State Legislature and cannot exceed Full Cash Value.

What is Real Property? Real Property includes land, buildings, and other improvements on the land.

What is Legal Class? The Legal Class is determined by the use of the property. If an individual parcel has more than one use, it will be assigned multiple Legal Classes and a "mixed ratio" will be applied to the value.

How is Assessed Value determined? The Assessed Value of each property class is determined using percentages set by the State Legislature. The following percentages apply to the three most used classifications.

Personal Property

What is Personal Property? For property tax purposes in Arizona, business personal property is defined as all types of property except real estate. Taxable personal property includes property used for commercial, industrial, and agricultural purposes. Personal property is considered to be movable and not permanently attached to real estate. Although there are exceptions, personal property usually can be removed without causing damage to either the real estate from which it is removed or to the item of property itself. Property taxes in Arizona are imposed on both real and business personal property.

How is Personal Property Valued? Based on original cost and age of all personal property in your possession as of December 31st of the prior year, the County Assessor will calculate the current replacement cost new less depreciation (Full Cash Value) of each item. The Assessed Value is based on the Full Cash Value after application of the $50,000 exemption (where applicable if qualified) and the assessment ratio for the legal class of the property. The tax rates for the county and local governmental jurisdictions in which the business operates are applied to the Assessed value. The original cost of a personal property item includes the purchase price plus all freight and installation costs as well as any paid sales taxes for the item.

How do I report Taxable Personal Property? File a Personal Property Statement, Form DOR 82520, or an Agricultural Personal Property Statement, Form DOR 82320A, with the county assessor each year. It should list property acquired or disposed of during the year and confirm property items still on the roll. It is the owner's responsibility to report his or her personal property to the assessor.

Is all Personal Property Taxed? Arizona offers several exemptions from personal property tax. Personal property used by the owner for private, domestic purposes is not subject to personal property taxation (except for manufactured housing). Household goods and furnishings, personal wardrobes and jewelry, or recreational possessions used in the owners residence for private activities are exempt from property taxation.

I've received an Arizona Business Property Statement, where do I send my payment? The Business Property Statement is not a Tax Bill, it is the annual reporting form for your business to submit changes on your account, (additions/deletions to equipment, name and address changes).

I just started my business, how do I report my Personal Property? The preferred method is to self-report your business to the Assessor's Office.  There is a 'Self Report' form available on this website, or call the Personal Property Department at (602) 506-3386.  However, many businesses are identified by the Appraisers during our annual canvass of the county.  Those businesses found by the Appraisers will have an Account Number assigned to them, and an Arizona Business Property Statement mailed to them.

This is the first time we received a Business Property Statement.  What do I need to do? Business Personal Property deals with the physical assets used in the operation of the business.  If you have an Asset Listing you can attach a copy to the property statement and return it to the Assessor's Office.  Or, if an asset listing is not available, make a listing of all the business equipment with a Description, Year it was purchased and the Original acquisition cost (to include any freight, installation, special support, special wiring, special plumbing and sales tax paid).

Last year we filed an Asset Listing and now our equipment costs are listed on the front of the Business Property Statement.  How do we make changes?     To add or delete equipment from your return, use the back side of the form, (section 4).  When adding equipment, list the total acquisition cost under the appropriate schedule column, and the year acquired at the far left of that row in the Additions section.  When deleting equipment, it is the same as adding, but listed in the Deletions section, (you must verify that the acquisition year you are deleting is preprinted on the front of the form, otherwise that deletion will not be considered).

We have added equipment, but do not know if it is Qualified or Non-Qualified? Equipment is qualified if this is the first time it is being assessed in Arizona.  Typically, brand new equipment is always qualified.  Used equipment that was acquired for the first time (historically), more than four years ago does not qualify and should be listed as Non-Qualified.

The name and address on the Business Property Statement is wrong.  How do we correct this? Complete Section 1 on the front of the form to identify any changes to the Business Name, Mailing Address or Location Address.

Is my inventory taxable? No, with minor exception, inventory for sale is not taxable in Arizona.

We did not receive our Business Property Statement.  How do I obtain a duplicate form to file? You must submit a written request, (identifying the Account Number), for a Duplicate form to be mailed out.  You may fax your request to (602) 506-7335.  However, due to the April 1st filing deadline, duplicates will not be typed and mailed after March 15th.

In regard to the deadline of April 1st, does the Business Property Statement need to physically be in your office, or can it be post marked April 1st? Your return must be Post marked on April 1st by the United States Postal Service, or certified mail only.  No internal, company postal meters post marks are valid or accepted.

Our business closed, how do I close my Business Personal Property Account?  You may write on any open space on the front of the Business Property Statement, or attach a separate letter, identifying the Account Number, stating that the business closed, date of closing and what happened to the equipment. 

How and when will I know if my account has been processed? The Assessor's Office mails out Valuation Notices in July.  The  Valuation Notice will identify your Full Cash Value, Assessed Value and appeal deadlines.

What if I don't agree with the Valuation Notice? By statute, you have 20 days from the notices mailing date to file a Petition for Review (DOR form 82530) with the Assessor's Office.  The Assessor's Office then has 20 days to respond to your petition.  If the disputed value has not been settled by that time, you may file with the Arizona State Board of Equalization within 20 days of the Assessor's Decision mailing date.

My Business Property Statement makes reference to "Important Exemption Information", is my business exempt? No, this "exemption" refers to the deduction of the first 50,000 in Full Cash Value (Replacement Cost New less Depreciation).  This amount is annually determined by the Arizona Department of Revenue.  Remaining Full Cash Value will be Assessed.

I operate several locations throughout the state.  Does the 'Exemption' apply to each location? The 'Exemption' applies only once throughout the state for each legal Business entity.  If more than one location's have a combined Full Cash Value of less than 50,000 then the 'Exemption' would cover all of those locations.

I am leasing equipment, and the leasing company is billing me for Personal Property Taxes, is this legal? By statute, the tax on Business Personal Property is a debt against the owner.  Typically the Leasing Company will pay the taxes directly to the County Treasurer and then issue their own billing to the lessee for reimbursement.  Please review your lease agreement for details.

I understand why my leasing company is billing me for Personal Property Taxes, but they are also charging an additional Sales Tax.  Isn't that double taxation? No.  The Counties are solely responsible to value and to collect the Personal Property Taxes for the equipment.  Separately, the Arizona Department of Revenue charges "Sales Tax", (technically labeled "Transaction Privilege Tax").  The Arizona Department of Revenue charges these  taxes on every invoice your leasing company bills to customers in Arizona.

I have finished my lease, and now own the equipment.  Shouldn't I report my 'buyout' cost as my acquisition cost? The best way to report any equipment that has been previously assessed by another business entity, is to maintain the Historical Acquisition Costs and Dates.  By reporting the historical information, you will maintain the depreciation already applied to the assets.  Once you report used equipment, at a reduced purchase cost, it is now Non-Qualified, and the depreciation starts over from your purchase date.  Also, if Market Value (which is the pre-depreciated value) is reported, then no additional depreciation will be applied.

Should you have additional questions, comments or concerns, about Personal Property please call our office at (602) 506-3386, and our operators will connect you to an Appraiser to assist you.

Property Exemptions

Mobile Homes

How is my Mobile Homes taxed?:

Ownership

I just bought a house, how long before the property will transfer to my name? The Assessor receives over 400,000 documents from the Recorder's Office each year, however you can expect that an ordinary house on a subdivision lot purchase could take 6-8 weeks after recording before the change displays on the web site. Purchases outside of a subdivision (mete/bounds legal descriptions or splits of property) take longer unless the Assessor's parcel number of the property is included in the legal description on the recorded deed.

Splits

I want to sell a piece of my property to one of my children. How do I split a property to get two parcel numbers for taxes? Record a deed conveying the property and describing the part of the property (legal description) you are conveying to the new owner. The Recorder's Office forwards all documents transferring property to the Assessor and the Assessor splits the property according to the description on the recorded document. The Assessor's Office suggests you seek the professional help of a title company or an attorney when transferring property. You also may wish to contact your local jurisdiction prior to splitting property to make certain you comply with any local ordinances as well as State requirements.

How long does a property split take? It should only take 8 to 10 weeks after the recording date to have a split processed. As a result of the tremendous growth in Maricopa County recently, the Assessor's Office is seriously backlogged. However, if you require the new parcels sooner for building permit purposes an accelerated parcel numbering process is in place. Contact our downtown office at 602-506-0198 for information.

Is there anything I can do to help speed the split processing? Make sure your title company includes the most recent Assessor's parcel ID number on the recorded deed, as part of the legal description of the property, before the document is recorded.

Property Values

My neighbor's house is the same model, why are our values different? For any number of reasons. To establish a market value, the Assessor's Office utilizes a combination of information, including previous sales in the neighborhood, distance from major intersections or areas zoned differently, topography, view, livable square footage, lot size and components, just to name a few. The valuation is determined by a computer analysis of the information gathered. Although properties may look alike on the surface there may be subtle differences. In mass appraisal those are not always obvious, even though they result in different values. Keep in mind that the Assessor must value over 1.3 million properties, and you have a right to appeal that value within 60 days of your Notice of Value, if you feel it's incorrect.

Corrections

If I have a correction, can I get my money back for prior years taxes? You must file a Notice of Claim. Under AZ statute the Assessor can submit an administrative action to correct the tax roll as a result of correction of an error, but only for up to three prior tax years. This process is called "resolution" and requires approval by various agencies before it can be completed. It normally takes several weeks before the process is completed and you receive a corrected tax bill from the Treasurer. The Treasurer notifies you by letter after they receive notification from the Assessor to make the change.

I have asked for a recheck of my property because I think the square footage is incorrect? How long will that take? Correction of errors is one of the Assessor's priorities. If you believe we have an error on your property record, we will have an appraiser recheck components. Most rechecks are resolved within three weeks of notification. The appraiser may or may not contact you directly depending upon the issue. A correction will be made to the next tax year record unless the change would mean a decrease of taxes. In that case the Appraiser would correct the current tax year.

What do I have to do to report an error on your website? Use the "Contact Assessor" link on our page, or the "Contact Us" on a County page with the keyword Assessor.

How long does it take to get a response? The Assessor's Public Assistance staff tries to respond within two business days or sooner, except at extremely busy times, when it could be longer.

Senior Protection

If I apply for Senior Protection, do I have to declare my business income if I had a loss? Yes you do. All income from all sources will be reviewed for this program.

My spouse passed away, how do I get the property listed in my name only? If the property is held in joint tenancy with right of survivorship, you can record a copy of the death certificate or a n otice of death at the Recorder's Office. Once the recorded document is forwarded by the Recorder, the name will be removed. If you need it removed sooner for legal reasons, a certified copy of the recorded document can be presented to the Assessor's Office, for the removal.

Can I get reduced taxes if I'm disabled? The State of Arizona has exemptions for widows, widowers and disabled persons. Click here for more information on property exemptions, or call Assessor's information 602-506-3406.