Legal Update: Property Tax Appeal

County assessors in Arizona recently mailed notices of property valuations for Year 2014. Commonly, these notices are ignored and discarded. Real property taxes can be confusing, yet the taxes can be one of the highest costs of property ownership. With the passage of Prop. 117 in November of 2012, every property owner should review this notice and strongly consider the property valuation and an appeal to the county, state and/or Tax Court. Property valuations are currently based on Full Cash Value and Limited Property Value.

Prop 117 - beginning in Year 2015, taxes will be based only on Limited Property Value - increases in the valuations can only be increased each year by a max of  5%.  You should ensure that the 2014 "baseline" value of your real property is as low as possible before the annual 5% increases are effective.  Time is of the essence. Appeals to the County Assessor are due within sixty (60) days after the notice was mailed. After appealing to the County Assessor, a taxpayer may also appeal to the State Board of Equalization. Finally, if the appeals to the County and the State have not been acceptable, a final appeal to Arizona Tax Court is permitted. Or, a taxpayer may appeal the valuation of its real property directly to the Arizona Tax Court by December 15^th.

If you would like legal assistance with the appeal process, or would like an initial review of the valuation to consider an appeal, please contact our office for referrals to our legal network.