What Do I Need To Do When I Get My Property Valuation Notice?
In most cases, no action is required. If you do not agree with your property valuation notice, or if you think that the value of your property is incorrect or it is misclassified, you may appeal; however to secure all of your appeal options you must file the appeal within 60 days of the notice date
. Instructions on how to file an appeal
are located on the back of your valuation notice and on the Assessor's web site.
Can The Full Cash Value Go Down But Limited Property Value Go Up?
Yes, if the spread between FCV and LPV is large enough, even in a declining market, FCV may be reduced to reflect market conditions but LPV may continue to rise. However, LPV can never exceed FCV (A.R.S.
Does a lower Full Cash Value and lower Limited Property Value mean my property taxes are going down?
Not necessarily. Your property tax amount will be determined when all the taxing jurisdictions calculate the amount of property tax levy. The total levy for each jurisdiction is shared by all taxpayers (including businesses) in the jurisdiction. If all property values drop within a jurisdiction, yet the tax levy share of the jurisdiction's operating budget remains the same, then taxpayers may still pay the same tax dollar amount (or share of the burden) into each jurisdiction to cover the levy. When voters approve new bonds and budget overrides, it may increase taxes or cancel the tax benefits of falling values.
What is Limited Property Value (LPV)?
The LPV was created by the Arizona state Legislature in 1980 to restrict increases to property taxes. The LPV cannot exceed the Full Cash Value (FCV). Limitations to the increasing of the LPV occurred in 2012 when the voters approved Proposition 117. Beginning in tax year 2015, the LPV is used to compute both primary & secondary taxes for the maintenance and operation of school districts, cities, community colleges districts, & counties. A.R.S.
What is Full Cash Value (FCV)?
Arizona Revised Statutes defines Full Cash Value (FCV) as being synonymous with market value. For assessment purposes, Full Cash Value approximates market value except for possible conditions unique to mass appraisal. This value is for the tax year shown at the top of your valuation notice page.
Full Cash Value (FCV) reflects market, unless other statutory calculations are mandated, and is the appealable value. The FCV represents the value of the land and improvements. When there is no statutory formula, the FCV is determined using standard appraisal methods and techniques. Beginning with tax year 2015, the LPV is utilized to calculate property taxes with the exception of Personal Property (excluding mobile homes) and centrally valued properties identified in A.R.S. § 42-12001, § 42-12002, § 42-12003, § 42-12004, § 42-12005, § 42-12006, § 42-12007, § 42-120011.
What is Proposition 117?
Proposition 117 is a voter approved initiative passed in the 2012 general election (A.R.S.
). It limits the increase of the Limited Property Value to 5% per year which is the sole value used to calculate primary and secondary taxes. The exception to this limitation is when a property owner has added or deleted improvements to the property. (See the LPV definition for these exceptions A.R.S
; § 42-13303 &
Will I see these new values in my next property tax bill?
No. The Notice of Value mailed out by the Assessor's Office on or before March 1st of every year is for the upcoming year. A.R.S.
requires the Assessor to notice a year in advance of the actual tax bill. The tax bill mailed by the Treasurer's office will use the values from the March notice from the Assessor's Office, therefore providing the property owner the ability to appeal the full cash value prior to receiving the effected tax bill.
What Is A Property Valuation Notice?
A Valuation Notice is a document prepared by the Assessor's Office which informs a property owner of the value the Assessor has placed on their property utilizing a mass appraisal approach.
The Valuation Notice contains the property's Legal Class, Full Cash Value, Limited Property Value, Assessment Ratio, and Assessed Value for the current tax year and the prior tax year so the property owner will see changes, if any, from one year to the next.
The Assessor's Office annually mails Valuation Notices to all property owners on or before March 1st of each year.
The Assessor's Property Valuation Notice is not a property tax bill. The County Treasurer calculates and mails the property tax bill in September of each ear.