The Assessor annually notices and administers over 1.8 million real and personal property parcels and accounts with a full cash value of more than $1 trillion.
Approximately 27,500 Business Personal Property (BPP) Notices of Value for roughly 70,000 accounts were mailed Friday, Aug. 16.
Business Personal Property can include assets such as tables, desks, computers, and machinery and equipment. Business owners must report the acquisition costs of all active assets used in the operation of their business on an annual basis. Once the BPP unit receives this report, they apply depreciation factors to the costs to determine the Full Cash Value.
Owners can appeal their value. The deadline to appeal is Monday, Sept. 16.
You can find more information and access the necessary forms here.
MARICOPA COUNTY, Ariz, (June 14, 2024) – The Maricopa County Assessor's Office is sending out another batch of Notices of Proposed Correction related to a court decision on Limited Property Value. This group of Notices will reverse the initial No...
Notice of Proposed Correction Reversal Letters Mailed
MARICOPA COUNTY, Ariz, (June 14, 2024) – The Maricopa County Assessor's Office is sending out another batch of Notices of Proposed Correction related to a court decision on Limited Property Value. This group of Notices will reverse the initial Notice of Proposed Correction (NOPC) we mailed to thousands of property owners last October.
Our office sent the first NOPC after the Tax Court ruled in Qasimyar et al. v. Maricopa County that a change from a Class 3 (primary residence) to a Class 4 (non-primary residence or rental), or vice versa, is technically a "change in use." As a result, the property's Limited Property Value (LPV) must be determined using a specific statutory calculation, which, in turn, affects the property's taxes. This ruling was ultimately upheld by the Arizona Court of Appeals in 2021.
Since we value properties a year ahead of the tax year, and in compliance with the Court decision, our team began identifying the properties that moved between Class 3 and Class 4 in tax years 2022 and 2023 – more than 78,000.
Before the ruling, our office did not consider a change from Class 3 to 4 or vice versa a "change in use" because it remained a residential property and calculated its LPV using the "standard" Rule A method. Rule A increases the property's LPV by up to 5% each year but can never exceed its Full Cash Value (FCV). However, if there has been a "change in use," Rule B is triggered, and the LPV is now calculated using a countywide ratio.
To implement the Court's decision, we had to recalculate the roughly 78,000 properties' LPV using Rule B. Over 34,000 properties were identified to receive a decrease in LPV while more than 44,000 properties would see an increase. In October 2023, we mailed NOPCs to the properties getting a decreased LPV.
However, following the court decision, the Arizona Legislature passed Senate Bill 1267, clarifying that a change between Class 3 and Class 4 does not qualify as a "change in use" and, therefore, will not trigger a Rule B. SB 1267 went into effect in October 2022, coinciding with the start of tax year 2023.
Updated guidance from the Maricopa County Attorney's Office stated that SB 1267 required us to reverse any NOPCs already sent for the 2023 tax year because of the Qasimyar case. We had yet to start mailing NOPCs to the properties receiving an increased LPV, so only about 14,000 properties were affected. Today, we issued those additional NOPCs, reverting the property's LPV to its original value.
The Maricopa County Assessor's Office acknowledges that this process may raise questions and concerns. We are committed to providing transparency and support to ensure property owners understand the changes and their options clearly.
We are offering virtual public education sessions where our subject matter experts will help property owners understand their revised value. They are as follows:
Wednesday, June 26 at 6 p.m.
Tuesday, July 2 at 6 p.m.
Monday, July 8 at 6 p.m.
Property owners are encouraged to review their Notice of Proposed Correction promptly and respond within 30 days if they choose to contest the correction. If they do not, we will correct the tax roll as proposed in the NOPC.
For more information or assistance regarding a Notice of Proposed Correction, affected property owners are encouraged to contact the Maricopa County Assessor's Office at 602-506-3406 or email ASR.QNOPC@maricopa.gov.
MARICOPA COUNTY, Ariz, (May 24, 2024) – The Maricopa County Assessor's Office is sending out about 19 thousand Notices of Proposed Correction to address a court decision on Limited Property Value. This group is the final mailing for properties re...
MARICOPA COUNTY, Ariz, (May 24, 2024) – The Maricopa County Assessor's Office is sending out about 19 thousand Notices of Proposed Correction to address a court decision on Limited Property Value. This group is the final mailing for properties receiving an increase to that value as a result.
In Qasimyar et al. v. Maricopa County, the Tax Court ruled that a change from a Class 3 (primary residence) to a Class 4 (non-primary residence or rental), or vice versa, is technically a "change in use." As a result, the property's Limited Property Value (LPV) must be determined using a specific statutory calculation, which, in turn, affects the property's taxes. This ruling was ultimately upheld by the Arizona Court of Appeals in 2021.
In Arizona, a property's LPV (taxable value) is calculated using either Rule A or Rule B. Rule A is the “standard” calculation for LPV. Over 95 percent of all Maricopa County properties receive a Rule A, which increases the LPV by up to 5 percent each year but can never exceed the property's Full Cash Value (FCV).
Rule B is triggered when the prior year’s LPV cannot be used as a baseline because the property was omitted from the preceding year’s tax roll, was split, had an addition or deletion worth at least 15 percent of its FCV, or the use of the property changed. Rule B requires our office to recalculate the LPV using a countywide ratio. For example, for tax year 2022, the LPV ratio was 68 percent of the Full Cash Value for Class 3 parcels and 67 percent for Class 4 parcels.
Before the court decision, our office did not consider a change between Class 3 and Class 4, or vice versa, as a "change in use" because it remained a residential property. To implement the Court of Appeals' decision, our office had to recalculate the LPV of all properties that changed between Class 3 and Class 4 from tax year 2021 to tax year 2022 using Rule B regardless of whether the recalculation increased or decreased the property’s LPV - about 55,000 properties in total.
With this mailing, we have officially notified the roughly 20,000 property owners identified for an increase. We mailed around 35,000 Notices of Proposed Correction (NOPC) to the properties receiving a decreased LPV in October 2023.
The properties that receive an NOPC indicating an increase to the LPV will not see additional tax liability for any past or current tax years. However, these revised LPVs will serve as the foundation for the property's LPV in the future, which could impact the owner’s tax responsibility beginning in tax year 2025.
Following the court decision, in 2022, the Arizona Legislature passed SB1267, clarifying that a change between Class 3 and Class 4 does not qualify as a "change in use" and will not trigger a Rule B for tax years 2023 and later. Moving forward, Rule B will only be triggered if a property’s intended use changes, i.e., a residential property to a commercial property, it was left off the previous year’s tax roll, or there are significant changes to the property.
The Maricopa County Assessor's Office acknowledges that this court decision and subsequent NOPCs may raise questions and concerns. We are committed to providing transparency and support throughout this process to ensure property owners understand the changes and their options.
We are offering several virtual public education sessions where our subject matter experts will help property owners understand their revised value and any implications. They are as follows:
Tuesday, June 11 at 6 p.m.
Thursday, June 13 at 6 p.m.
Tuesday, June 18 at 6 p.m.
Thursday, June 20 at 6 p.m.
Property owners are encouraged to review their Notices of Proposed Correction promptly and respond within 30 days if they choose to contest the correction. If they do not respond after 30 days, we will correct the tax roll as proposed in the Notice.
For more information or assistance regarding the NOPCs, affected property owners are encouraged to contact the Maricopa County Assessor's Office at 602-506-3406 or email ASR.QNOPC@maricopa.gov.
