The Assessor’s responsibility is to locate, identify, and appraise property at current market value. The market value, or full cash value, of all real property in Arizona is the starting point for determining taxable values. Arizona courts have interpreted the term “full cash value” to mean the “cash equivalent value” of the property.
When analyzing the accuracy of the Assessor’s property values, ask yourself if the property has been valued fairly. First, sales of similar properties must be reviewed. When using the sales comparison (market) approach, we must carefully analyze all sales data. Size, quality, location, differences in additions or features and time of sale are important factors to consider.
The Assessor does not create the value. People make the value by the decisions they make in the marketplace. The Assessor has the legal responsibility to study those transactions and appraise property accordingly.
Arizona is unique in that it uses two types of property values for taxing purposes. The limited property values are used to calculate primary taxes. ARS §42-11001(7) defines limited property value (LPV) as the value determined pursuant to ARS §42-13301. Under ARS §42-13301 the LPV is the limited property value of the property in the preceding valuation year plus five percent of that value. The current LPV of a parcel of property shall not exceed its current full cash value. Per ARS §42-11001(7), the LPV is used to calculate the levy limitations for counties, cities, towns and community college districts, and for assessing, fixing, determining and levying primary and secondary property taxes on all property except property described in ARS §42-13304, which again, include personal property, other than mobile homes, and property included in property class one under ARS §42-12001(1)(7) and (11).
If a property owner believes that the values or classification are excessive or erroneous, the owner may file an appeal with the county assessor within the allotted time frame.