Search
× Search
Thursday, October 19, 2017

Frequently Asked Questions (FAQs)

 Click on a category to the left to filter the list of forms below.

How and when will I know if my account has been processed?

The Assessor’s Office mails out Valuation Notices on or before August 30 of each year. The Valuation Notice will identify your Full Cash Value, Assessed Value and provide the appeal deadline.

How is Personal Property Valued?

Based on original cost and age of all personal property in your possession as of December 31st of the prior year, the County Assessor will calculate the current replacement cost new less depreciation (Full Cash Value) of each item. The Assessed Value is based on the Full Cash Value after application of any qualifying exemption amount and the assessment ratio for the legal class of the property. The tax rates for the county and local governmental jurisdictions in which the business operates are applied to the Assessed value. The original cost of a personal property item includes the purchase price plus all freight and installation costs as well as any paid sales tax for the item.

I am leasing equipment, and the leasing company is billing me for Personal Property Taxes. Is this legal?

By statute, the tax on Business Personal Property is a debt against the owner. Typically the Leasing Company will pay the taxes directly to the County Treasurer and then issue their own billing to the lessee for reimbursement. Please review your lease agreement for details.

I have finished my lease, and now own the equipment. Shouldn’t I report my ‘buyout’ cost as my acquisition cost?

The best way to report any equipment that has been previously assessed by another business entity is to maintain the Historical Acquisition Costs and Dates. By reporting the historical information, you will maintain the depreciation already applied to the assets. Once you report used equipment, at a reduced purchase cost, it is now Non-Qualified, and the depreciation starts over from your purchase date. Also, if Market Value (which is the pre-depreciated value) is reported, then no additional depreciation will be applied.

I just started my business, how do I report my Personal Property?

If you were not sent a form, please contact the Assessor and a form will be mailed to you for completion or see Forms.

I operate several locations throughout the state. Does the ‘Exemption’ apply to each location?

The “Exemption” applies only once throughout the state for each legal Business entity. If multiple locations have a combined Full Cash Value of less than the exemption amount then it would cover all of those locations. You will need to choose which county you are claiming your exemption in. If the combined Full Cash Values are over the exemption amount, the remaining will be assessed.

I understand why my leasing company is billing me for Personal Property Taxes, but they are also charging an additional Sales Tax. Isn’t that double taxation?

No. The Counties are solely responsible to value and to collect the Personal Property Taxes for the equipment. Separately, the Arizona Department of Revenue charges “Sales Tax”, (technically labeled “Transaction Privilege Tax”). The Arizona Department of Revenue charges these taxes on every invoice your leasing company bills to customers in Arizona.

I’ve received an Arizona Business Property Statement, where do I send my payment?

The Business Property Statement is not a Tax Bill, it is the annual reporting form for your business to submit changes on your account such as, additions/deletions to equipment and name and address changes.

If my Full Cash Value is below the exemption amount do I still have to complete the form every year?

In most cases No, if your Full Cash Value falls below the annual exemption amount, you may be sent a form that will have a place for you to sign stating that your business is below the exemption amount.

If you are a leasing company, handle rental equipment or you take your exemption in another county, you will need to file yearly.

In regard to the deadline of April 1st, does the Business Property Statement need to physically be in your office, or can it be post marked April 1st?

Your return must be postmarked on or before April 1st by the United States Postal Service or certified mail or emailed or faxed.

Is my inventory taxable?

No, inventory for sale is not taxable in Arizona.

Last year we filed an Asset Listing and now our equipment costs are listed on the front of the Business Property Statement. How do we make changes?

To add or delete equipment from your return, use the back side of the form, (section 4). When adding equipment, list the total acquisition cost under the appropriate schedule column, and the year acquired at the far left of that row in the Additions section. When deleting equipment, it is the same as adding, but listed in the ‘Deletions’ section. You must delete equipment out of the same year that it was previously reported.

My Statement refers to a Claim of Exemption. What does this mean?

Per state statue, each eligible taxpayer is entitled to one statewide exemption.

The exemption amount is determined annually by the Arizona Department of Revenue. After the exemption has been applied any remaining Full Cash Value will be assessed.

The yearly exemption amount can be found on the current Business Personal Property Statement on page 2 in section 6.

Our business closed, how do I close my Business Personal Property Account?

You may write on any open space on the front of the Business Property Statement, or attach a separate letter, identifying the Account Number, stating that the business closed, date of closing and what happened to the equipment.

The name and address on the Business Property Statement is wrong. How do we correct this?

Complete Section 1 on the front of the form to identify any changes to the Business Name, Mailing Address or Location Address.

This is the first time we received a Business Property Statement. What do I need to do?

Business Personal Property deals with the physical assets used in the operation of the business. If you have an Asset Listing you can attach a copy to the property statement and return it to the Assessor’s Office. Or, if an asset listing is not available, make a listing of all the business equipment including a description of the equipmentyear it was purchased and the original acquisition cost(to include any freight, installation, special support, special wiring, special plumbing and sales tax paid). Send your list to the Assessor’s Office.

We did not receive our Business Property Statement. How do I obtain a duplicate form to file?

Please contact the Assessor’s Office and a duplicate form will be mailed, faxed or emailed to you or, for a blank form, see the Forms section of this page.

We have added equipment, but do not know if it is Qualified or Non-Qualified?

Qualified Equipment may be eligible for additional deprecation where Non-Qualified may only receive standard depreciation.

Equipment is qualified if this is the first time it is being assessed in Arizona. Typically, brand new equipment is always qualified. Used equipment that was acquired in Arizona for the first time (historically), should be listed as Non-Qualified.

What if I don’t agree with the Valuation Notice?

By statute, you have 30 days from the notice’s mailing date to file a Petition for Review (DOR form 82530) with the Assessor’s Office. The Assessor’s Office then has 20 days to respond to your petition. If the disputed value has not been settled by that time, you may file an appeal with the County Board of Equalization within 20 days of the mailing date of the Assessor’s Decision. Hearings are scheduled by the Board of Equalization after the appeals are filed. (Appeal forms are available for download during the appeal season.)

What is Business Personal Property?

For property tax purposes in Arizona, business personal property is defined as all types of property except real estate. Taxable personal property includes property used for commercial, industrial, and agricultural purposes. Personal property is considered to be movable and not permanently attached to real estate. Although there are exceptions, personal property usually can be removed without causing damage to either the real estate from which it is removed or to the item of property itself. Property taxes in Arizona are imposed on both real and business personal property.
Terms Of UsePrivacy StatementCopyright 2017 by Yavapai County Government