By: Bill Meyer, Property Tax Evaluations, Inc.
For real property, The State of Arizona defines “valuation year” as “The calendar year preceding the year in which taxes are levied.” Translated, that means all assessments / valuations that determine 2017 property taxes are set in 2016.
Contrary to popular belief, there are provisions for property tax appeals up to December 15th 2016. In order to be eligible, the property must not have been previously appealed in 2016 and property taxes must be current. Also “A New Owner that changed ownership before December 15th of the valuation year may appeal to tax court on or before December 15th of the valuation year.” So, any property with a purchase price less than assessed valuation is a good candidate for appeal.
It should be noted that assessment ratios for commercial (class 1) and land (class 2) have been recently reduced. For commercial, the assessment ratio has been declining a half percent per year since 2012. Starting at 20%, the rate has settled this year at 18%. Land (class 2) had a one-time reduction in 2016 to 15% from the long held ratio of 16%.
It bears repeating that proposition 117, is now the law of the land concerning property taxes in Arizona. Proposition 117 is the initiative passed by the voters in 2012 and became effective in 2015. It states simply that real property taxes will now be based entirely on the Limited Property Value (LPV), and the LPV can only increase five (5%) percent per year. There are exceptions to the 5% increase such as splits and combinations, change of use and extensive renovations. It is advisable to know the tax consequences prior to undertaking any of these actions.
Property Tax Evaluations Inc. was established to provide complete tax consulting services to owners of Land, Residential and Commercial property. We are a local firm and have been serving clients in Southern Arizona, since 1989.
Timothy Abrams and Alain Hartmann, who have combined experience in the Real Estate Industry of more than 50 years, formed Property Tax Evaluations. Their combined experience with years of hands on Management and Property operations provides expertise in all aspects of determining fair and concise market values.
Bill Meyer, is a Realtor and Licensed Tax Professional - Being a native of Arizona gives Bill (aka Brode) Meyer a unique prospective of the State and its development. Over 20 years as a property tax consultant with PTE ensures the experience to provide quality service and positive results. In addition, 30 plus years of real estate experience enhance the knowledge and ability to evaluate properties in prospective to the marketplace. Email: BMeyer@PropTaxEval.com
To learn more, the Property Tax Evaluations Team can be reached at 520.290.4545 or at https://www.proptaxeval.com/.