John R. Hastings      Associate Broker Licensed in Arizona
Real Estate Property Taxes
Arizona Real Estate Property Tax – An Easy Overview

In Arizona property taxes are “Ad Valorem” (based on value) and we pay our real estate property taxes in arrears.  The tax year runs concurrent
with the calendar year beginning on January 1 and ending on December 31.  Tax bills are mailed to property owners each September and are paid
in two installments – the first half being due on October 1 (becoming delinquent after November 1) and the second half being due the following
March 1 (becoming delinquent after May 1).  Because we pay “in arrears” the tax bill mailed in September is for that current calendar year, and it is
easy to see that the first half, which you pay in October, is really for the first half of the year from January 1 through June 30.  The second half,
which you pay the following calendar year in March or April, covers your tax liability for July 1 through December 31.  Special Exemptions that
reduce property taxes are available for qualifying widowed persons and for fully disabled persons - see note at bottom of this page.

Between January 1 - March 1 each year the County Assessor mails property owners a Notice of Valuation which shows the value of the property
as it is being used for that current year (used on the bill to be mailed six months later in September) as well as the value that will be used for the
following year.  Property owners who disagree with the Assessors valuation for the following year can appeal that valuation within 60 days of the
notice mailing date.  The valuation for the current year cannot be appealed as that window of opportunity closed 60 days after that notice was
mailed the prior year.  The deadline for appeals of the 2011 value was April 6, 2010, and the deadline to appeal 2012 values was April 12, 2011.

Taxes are based on two Values:  the first being “Limited Property Value” (LPV) which is used to determine the “Primary Taxes” (basic expenses of
government and schools) and the second being “Full Cash Value” (FCV) which is used to determine the tax due for “Secondary Taxes” (voter
approved bonds and levies).

The initial values are established when property is sold and purchased.  Future values are based on the Assessor’s annual opinion of value.  The
FCV is supposed to reflect the actual “fair market value” of the property, and the LPV is calculated according to a statutory formula designed to
reduce the effect of inflation on property taxes.  The LPV cannot exceed the FCV.

Actual taxes to be paid are calculated by applying the Tax Rate established by the taxing authorities to the Assessed Value of the property and is
expressed as a dollar rate per $100 of Assessed Value.  The Assessed Value ratio for residential property is 10% of the FCV and LPV.  The ratio for
vacant land is 16% and the ratio for commercial property is 24%.

Below you can see a chart showing the history of tax valuations, rates and liabilities for a particular property from 2005 – 2011 as well as a
percentage of change from year to year.  As you will see the FCV grew rapidly from 2005 – 2008 but is shown to fall for 2009 through 2011.  You
will also see that the LPV did not grow nearly as fast as the FCV (as was intended to dampen the impact of inflation).






















It is important to understand the sequence of events that drive the “Tax Rate” each year:
1.        First, the County Assessor determines the total value of all property in the county;
2.        Next the agencies and tax districts funded by these taxes determine their annual operating budgets for the following year;
3.        Then the total dollars needed to operate are allocated amongst properties via the “Tax Rate” per $100 of assessed value.
4.        In the end, the total revenue needed will be collected from the property taxes levied.

The information on this page is intended to provide a simple easy to understand overview of how property taxes work in Arizona, specifically in
Mohave County.  For a more detailed explanation as written by the County Assessor (this is a large PDF file that requires Adobe Acrobat Reader
and will take a couple minutes to load)  Click Here.

SPECIAL EXEMPTIONS - Special Exemptions exist for certain Qualifying Widowed Persons and for Fully Disabled Persons - Click Here
for more information.

APPEALS - Anyone wishing to appeal the County Assessor's valuation of their property Click Here to be directed to County Assessor's web
site for directions and the proper forms.