For a larger glossary of many terms used in property appraisal, please see the International Association of Assessing Officers' Glossary for Property Appraisal and Assessment .


International Association of Assessing Officers.

Improvement Description

Provides a general description of the Improvement's initial design/use (i.e. warehouse, drugstore, auto repair, etc.)

Improvement Number

Is a six digit number that identifies a specific building or site improvements. The first four digits indicate the # assigned to the improvement. Note: there may be multiple buildings (improvements) on a parcel. The last two digits indicate the section of the building. Note: a building may be divided into different sections based on use and/or design.

Improvement on Possessory Rights (IPR)

Improvements on Possessory Rights (IPRs) exist when a fixed property is located on unpatented land, a mining claim or state land not secured by patented real property as defined in Arizona law (A.R.S § 42-19110 ). Basically, this means there are private buildings or improvements on government land.

IPRs are placed on the Personal Property Roll instead of the Real Property Roll as instructed by law. As Personal Property Accounts, they will have a different numbering system than Real Property Parcels and are subject to valuation as personal property.

With the exception of owner-occupied housing that is listed as an IPR, these properties are subject to the tax seizure procedures of personal property (A.R.S § 42-19116 ).

Improvement Quality

A code for the overall quality of a building. For residential properties, the quality ranking will be listed as a whole number ranging between 1 and 7. For commercial properties, the quality ranking will be listed in half-numbers ranging between 0.5 and 5.0.

Improvement Section Description

A standard description for a whole or part of a building which is architecturally unique due to age or style.

Improvement Square Footage

Gross square footage of the improvement.


Anything done to the land to make it more valuable. Improvements include:

  1. Land items such as buildings, parking surfaces; fences erected on or affixed to the land; row crops and fruit, nut bearing, or ornamental trees and vines (not of natural growth).
  2. Improvements to the land to make land useable. Includes items such as berms, swales, leveling, retention walls, backfill and compaction, sewers and drains, etc. and are considered to e a part of the land.

In Care Of

A line in an address for a recipient who is not the named owner.

Income Approach

The method of estimating the value of a property based on income capitalization. Income figures should reflect current market conditions and typical management. 2) A set of procedures through which an appraiser derives a value indication for an income-producing property by converting its anticipated benefits into property value. This conversion can be accomplished in two ways. One year's income expectancy can be capitalized at a market-derived capitalization rate or at a capitalization rate that reflects a specified income pattern, return on investment, and change in the value of the investment. Alternatively, the annual cash flows for the holding period and the reversion can be discounted at a specified yield rate.


A part of depreciation where it is not economical to correct the condition, and if corrected, the cost of correcting the condition exceeds the value.

Incurable Depreciation

An element of accrued depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design, which cannot be practically or economically corrected.

Indirect Costs

Cost incurred in construction away from the site. For example; fees, permits, insurance and loans.

Industrial Property

Land and/or improvements that can be adapted for industrial use; a combination of land, improvements, and machinery integrated into a functioning unit to assemble, process, and manufacture products from raw materials or fabricated parts; factories that render service, e.g., laundries, dry cleaners, storage warehouses, or those that produce natural resources, e.g., oil wells.


A means of entering (ingress) and a way out; an exit or outlet (egress).

Intangible Personal Property

Rights over tangible real and personal property, but not rights of use and possession, for example, notes, bonds, stocks, patents, mortgages, copyrights, and insurance policies.


This is the amount that is imposed when payment is remitted after the due date.

Interest Rate

A rate of return on capital; the premium paid for the use of money.


  1. Items of personal property that become part of a product or are themselves a product that are held for sale or lease in the ordinary course of business.
  2. Stocks of raw or unfinished materials, unassembled parts, work in progress, or finished products of a retailer, wholesaler or manufacturer located within this state and that is principally engaged in the resale of such materials, parts or products. Such items are exempt from personal property taxation. A.R.S. § .

Investment Property

Property that constitutes a business enterprise consisting of all tangible and intangible assets assembled and developed as a single unit of utility for lease or rental, in whole or in part, to others for profit; normally purchased in expectation of annual net income and/or capital gain.

Investment Value

Value to a specific investor. Investment value mayor may not coincide with market value depending upon the requirements of the specific investor.