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. Continue reading

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. Continue reading

What if I don’t agree with the Valuation Notice?

By statute, you have 20 days from the notice’s 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 an appeal with the Arizona State Board of Equalization within 20 days of the mailing date of the Assessor’s Decision. Continue reading