I previously discussed how in February you receive your valuation notice from the Assessor and that the deadline to appeal to the Assessor is usually sometime in April and to the Arizona Tax Court, on or before December 15.
What people forget is that the valuation year is the year before the tax year. In February of this year, we received our valuation notices for the 2014 tax year. In October you will receive your 2013 tax year bills.
Often it is only when people review their tax bills that they realize they should have appealed. But by then it is too late as the last appeal deadline was December 15 of the previous year. There is an exception. If you purchase your property after December 15, 2012, then you will have until December 15, 2013 to file your appeal for the 2012 tax year.
Also, when you review your tax bill, please keep in mind there are two basic issues you can appeal: classification and valuation. Is the property overvalued? Is the property classified as commercial (19.5% assessment ratio) where there is a house on it (10% assessment ratio)? Is the property classified as commercial (19.5% assessment ratio) where it is vacant without use and should be classified as vacant (16% assessment ratio)? We have no control over the tax rates which have a lot to do with the amount of our taxes compared to the value of the property. It is the tax rates that give you higher taxes than your friend who lives not that far away.
I suggest you pay your property tax timely as the delinquent interest rate is 16%. Conversely, if you overpay your property tax and the Treasurer pays you a refund, the current interest rate on the overpayment is 4.25%. This hardly seems fair, but this is the law.
Just keep in the back of your mind that early next year when you receive your Assessor valuation notice, it will be for the 2015 tax year.
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