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Notices of Proposed Correction mailed as result of court decision

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MARICOPA COUNTY, Ariz. (Sept. 28, 2023) - The Maricopa County Assessor's Office is sending out about 79,000 Notices of Proposed Correction to address a court decision on limited property value. 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 calculated 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 surpass the property's Full Cash Value.

Rule B is triggered when the prior year’s LPV cannot be used as a baseline because, for example, the property was omitted from the preceding year’s tax roll, was split, had an addition or deletion to the property worth at least 15% of its full cash value, 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 is 67 percent of the Full Cash Value for Class 4 parcels and 68 percent for Class 3 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. These Notices of Proposed Correction implement the Court of Appeals' decision for the 2022 and 2023 tax years. Our records indicate that over 34,000 properties will have a decrease in LPV due to this recalculation, while over 44,000 properties will see an increase in LPV. This week, the Assessor’s Office is sending out Notices of Proposed Correction to the properties that will have a decreased LPV. These property owners will likely see a refund or adjustment to their property tax bill from the Maricopa County Treasurer's Office.

The properties that saw an increase to the LPV will not see additional tax liability for tax years 2022 or 2023 because of the Notices of Proposed Correction. 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. The Assessor’s Office is still in the process of recalculating these increased LPVs and will send Notices of Proposed Correction to the affected property owners in the coming months.

Notably, 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, therefore, will not trigger a Rule B for tax years 2024 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, or there are significant changes to the property.

The Maricopa County Assessor's Office acknowledges that this court decision and the Notices may raise questions and concerns among property owners. The office is committed to providing transparency and support throughout this process to ensure that property owners clearly understand the changes and their options.

We are offering several virtual public education sessions where our subject matter experts will help property owners understand the changes and their implications. Property owners can register here for one of the options listed below.

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 of Proposed Correction.

For more information or assistance regarding the Notices of Proposed Correction, affected property owners are encouraged to contact the Maricopa County Assessor's Office at 602-506-3406.

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Read our Fiscal Year 2023 Annual Report

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Maricopa County Assessor, Eddie Cook, has released the County’s Fiscal Year 2023 Annual Report. This comprehensive report details the increasing assessed values of taxable property, recent trends in property ownership changes, and growing property parcel types.

The 2023 Annual Report reveals that the full cash value of all real property in Maricopa County totaled over $1 trillion for the first time, continuing the streak of consecutive growth. Additionally, the Annual Report delves deep into the activities, accomplishments, and insights of the Maricopa County Assessor’s Office.

We encourage you to take the time to explore our Annual Report; your engagement and feedback are invaluable to us as we strive to provide exceptional service and improve our operations year after year.

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Notices of Class Action Mailed

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Today, Maricopa County is mailing some residential property owners Notices of Class Action in connection with a tax court case entitled Qasimyar et al v. Maricopa County (Case No. TX2016-000882).

A sample copy of the Notice can be found here: Notice of Class Action Lawsuit and Judgment

Class members who want to opt out of the class action must complete and mail an Election to Opt Out of Class Action form to Mooney, Wright, Moore & Wilhoit PLLC no later than September 14, 2023.

Please direct all questions regarding this Notice to:

Paul Moore
Bart S. Wilhoit
Mooney, Wright, Moore & Wilhoit, PLLC
14301 N. 87th Street, Suite 207, Scottsdale, Arizona 85260
Tel: 480-615-7500
Email: pmoore@mwmwlaw.com