{"id":531,"date":"2022-06-22T22:27:19","date_gmt":"2022-06-22T22:27:19","guid":{"rendered":"https:\/\/www.jacksonwhitelaw.com\/eminent-domain\/?page_id=531"},"modified":"2024-08-03T16:20:29","modified_gmt":"2024-08-03T16:20:29","slug":"real-property-tax-appeals","status":"publish","type":"page","link":"https:\/\/www.jacksonwhitelaw.com\/eminent-domain\/services\/real-property-tax-appeals\/","title":{"rendered":"Phoenix Property Tax Appeal Attorney"},"content":{"rendered":"\t\t
Sometimes, it feels like there\u2019s a tax for everything. Income taxes, sales tax, property taxes…the list goes on and on. It can get pretty frustrating as those tax bills add up, and unfortunately there\u2019s nothing you can do to get around it.<\/p>
That said, while tax evasion is illegal, tax avoidance is prudent. In other words, you can\u2019t skip out on taxes, but you can do everything in your power to ensure you don\u2019t pay a penny more than you\u2019re obligated to.<\/p>
For income taxes, that means working with an accountant to legally lower your tax bill. If you\u2019re extremely wealthy, it could also mean working with a financial planner and estate attorney to shelter your assets from estate taxes. For property taxes, you have the right to initiate a property tax appeal.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
In Arizona, property taxes are determined by two factors: classification and valuation. Both are determined by the county assessor\u2019s office, which assess every property in the county on an annual basis.<\/p>
Arizona law provides for nine property categories, which are laid out in ARS 42-12001<\/a> through 42-12009<\/a>. Classification of real property is quite technical, so it\u2019s best to speak with an attorney if you\u2019re questioning your property\u2019s classification.<\/p> As for valuation, the county assessor\u2019s office first computes the property\u2019s full cash value<\/a> (i.e. fair market value) based on information such as lot size, livable square footage, view, topography, zoning, and previous sales in the neighborhood. This is a computerized valuation based on an analysis of the information gathered, so errors are not uncommon.<\/p> Once the assessor\u2019s office has established a property\u2019s full cash value, they determine the assessed valuation or limited property value based on the full cash value. The assessed valuation is based on a percentage dictated by Arizona law, and it varies based on the property\u2019s classification.<\/p> After the county assessor\u2019s office determines your property\u2019s assessed valuation, it\u2019s time to apply local property taxes. The actual tax rate is based on a number of contributing factors, ranging from city-imposed taxes to appropriations for bond issues, community colleges, water districts, local schools and more.<\/p> Generally speaking, the average Arizonan sees a property tax rate of 8.7% to 15% of their assessed value before exemptions and rebates are applied. That may sound like a lot, but remember that\u2019s based on the assessed valuation, not the fair market value of your property. For example, assuming an assessed valuation percentage of 10%, that means the average property tax rates are 0.87% to 1.5% of the actual full cash value.<\/p> Property valuations and taxes are calculated well in advance of the tax year when they\u2019re due. Here is what the timeline looks like in Arizona:<\/p> The county assessor reviews local market conditions 2.5 years in advance of the tax bill. For example, for 2020 property taxes, the county assessor would review the market conditions from the middle of 2017 to the middle of 2018. The assessor will then establish the property\u2019s assessed value based on market conditions.<\/p> ARS 42-15101<\/a> requires the county assessor send the Notice of Value between January 1 and March 1. Most years, the Notice of Value is mailed in February.<\/p> While the county assessor is the one to determine a property\u2019s full cash value and assessed value, the Property Tax Bill ultimately comes from the Treasurer. You should see the Tax Bill in the mail in September. That\u2019s a year and a half after receiving your Notice of Value, and almost 2.5 years after the assessor determined the market conditions.<\/p> When the county assessor issues the Notice of Value, the valuation is presumed to be accurate unless challenged. In other words, the government won\u2019t take it upon themselves to check the valuation \u2014 if you fail to catch a mistake and challenge the valuation within the allotted time frame, you\u2019re held to the tax liability regardless of its accuracy.<\/p> Arizona law provides two ways for property owners to appeal<\/a> their property taxes. You can pursue an administrative appeal to the county assessor and the State Board of Equalization, or you can take the matter to court. Our Arizona property tax appeal attorneys can help you in either situation.<\/p> When you believe the property value stated in your Notice of Value is too high or otherwise improperly valued, you may file an appeal directly with the county assessor\u2019s office. Under ARS 42-16051<\/a>, you have 60 days to file the appeal after receiving the Notice of Value.<\/p> If you are unhappy with the county assessor\u2019s decision after your appeal, you can bring the matter before the State Board of Equalization (SBOE<\/a>). The SBOE will assign a mediator and schedule a hearing where you and the assessor can present the basis for the differing valuations. Note that the timeline for filing an appeal with the SBOE is even stricter than filing with the county assessor \u2014 you must file the appeal within 25 days of the date of the assessor\u2019s appeal decision.<\/p> Should the SBOE come to a conclusion that you disagree with, you can still take the matter to court and fight the improper valuation in Tax Court. It\u2019ll be more difficult with the assessor and SBOE having already ruled against you, but it\u2019s certainly possible to successfully fight your case in court after losing your administrative appeals.<\/p> There are a handful of situations where it may be prudent to take your property tax case to tax court. Perhaps you missed the deadline to pursue an administrative appeal, or you disagree with the final decision from the SBOE. Of course, you can always just circumvent the administrative appeals process and go directly to court.<\/p> Regardless of your reasoning, the first thing you\u2019ll need to do is meet with an attorney. You can pursue an administrative appeal on your own, but you\u2019ll absolutely need an experienced attorney to successfully take your case to court.<\/p> With your attorney\u2019s assistance, you\u2019ll file a property tax claim in tax court or small claims court. Small claims court is reserved for appeals involving owner-occupied residential properties or any property valued under $2 million. Tax court is for agricultural properties, vacant land, and commercial properties worth more than $2 million, and residential properties that are not the owner\u2019s primary residence.<\/p> There are two potential timelines that apply for appealing property taxes in tax court. If you already pursued an administrative appeal, you need to file your claim with the Arizona Superior Court within 60 days of the most recent administrative decision. If you appeal directly to tax court without pursuing an administrative appeal, you must file your claim on or before December 15th of the year you received the Notice of Value.ta<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t The timelines for administrative appeals and court appeals are generally ironclad, so ignore them at your own peril. There are only two exceptions to the established deadlines:<\/p> In Maricopa County, you can file a residential property tax appeal online<\/a>. Alternatively, you can always file a residential appeal by mail using the Residential Petition for Review of Valuation<\/a>. If you\u2019re appealing property taxes for multiple properties, you can use the Multiple Parcel Appeal Form<\/a>.<\/p> In your petition, you\u2019ll need to indicate the method of valuation for your appeal. For residential cases, you have two options:<\/p> Most counties require a traditional paper petition for administrative appeals regarding commercial properties. In Maricopa County, you would need to fill out and submit a Petition for Review of Real Property Valuation<\/a>. As with residential properties, there is an alternate form for petitioners with multiple properties<\/a>.<\/p> Commercial property petitions may employ the market sales approach, the cost approach, or the income approach. The latter is exclusively for commercial properties (not residential), and requires a completed and notarized income and expense statement.<\/p> Call the tax appeal team at JacksonWhite at (480) 467-4334<\/a> to discuss your case today.<\/p><\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\tProperty Tax Timeline in Arizona<\/h2>
Market Conditions<\/h3>
Notice of Value<\/h3>
Tax Bill<\/h3>
Property Tax Appeals Process in Arizona<\/h2>
Administrative Appeals<\/h2>
Tax Court Appeals<\/h2>
Exceptions to Appeal Deadlines<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Residential Property Tax Appeals<\/h2>
Commercial Property Tax Appeals<\/h2>