Real Property Tax Notice of Value

In February of 2013, property owners received a Notice of Valuation from the county assessor.  This Notice of Value is for the 2014 tax year.  The Notice of Value contains three pieces of useful information:

o    Full Cash Value or FCV is the value the assessor believes your property is worth as of January 1, 2013.

o    Limited Property Value, or LPV, is a value set by statute which accounts for roughly two-thirds of your total property tax.  The LPV may be less than the FCV, but it will increase every year until it equals the FCV. It will never exceed the FCV. 

o    The deadline to appeal to the assessor.  This date typically is in April. 

Why you might want to appeal:

The FCV is greater than your property is worth.

In the case of homeowner’s associations, the common areas are not valued at $500 per parcel.

A portion of the property is classified as vacant land [16% assessment ratio] as opposed to residential [10% assessment ratio].

What Your Notice Doesn’t Say
You have the right to appeal directly to the Arizona Tax Court at any time during the administrative appeal process or outside of the administrative appeal process.  The direct Tax Court appeal must be brought on or before December 15, 2013. 

For example, if you appealed to the assessor, and then to the State Board of Equalization (SBOE), you can appeal to the Arizona Tax Court at any time but not more than sixty days after the date of the last decision you received in the administrative appeal process.  Or you can avoid the administrative appeal process and appeal to the Arizona Tax Court on or before December 15, 2013.

There are advantages and disadvantages to filing administratively and in the Tax Court.  In the administrative appeal process there is no filing fee whereas in Tax Court there is a filing fee and there may be the cost of serving the Summons and Complaint on the county.  Furthermore, you get two opportunities to obtain a reduction administratively that you would not receive if you appealed directly to the Tax Court.   Lastly, a property owner is better able to represent himself in the administratively appeal process and can save the fees he or she would have to pay to either a tax agent or an attorney.

Conversely, you are more likely to obtain a more meaningful result in a Tax Court appeal with an attorney.  


Please feel free to contact me at (480) 612-0577 or  mtynanlaw@cox.net.