In 2011, the Arizona Legislature passed house bill 2001 (“H.B. 2001”), which, among other things, changed the classification requirements for real estate in Arizona. [3] Prior to H.B.`s coming into force in 2001, real property used for residential purposes was classified as Class 3 real property for tax purposes. However, according to H.B. 2001, only properties that are used as the owner`s principal residence or that are rented or leased to a relative of the owner[4] and used as the parent`s principal residence can be classified as “Class 3” property. In addition, “Class 4” real property has been expanded to include residential real property returned to a lender or financial institution in an extrajudicial seizure. As a result, many of the buyers of foreclosed properties (Category 4) who now use properties as their principal residence (Class 3) have not correctly updated the classifications of their properties, leading to widespread misclassification. The legal class is based on your use of the property. Owners of Class 3 properties are eligible for a property tax credit of up to $600.

Unfortunately, owners of Class 4 properties are not entitled to this credit. If your Class 3 property is incorrectly classified as a Class 4 property with the treasurer`s office in the county where your property is located, you may miss up to $600 as a property tax credit. Assuming the maximum amount is received, this misclassification could cost a landowner $3,000 in property tax credits over a five-year period. If two or more legal class definitions apply to a single property, a combined assessment rate is calculated and an “M” (mixed use) is displayed in the “Legal Class” column. The legal description on the front of the value display may be incomplete due to space constraints. Please notify the Office of the Assessor of any change of address by completing the Change of Address and/or Change of Ownership Form. Please note that the legal class ratio may change from year to year. If you believe your property has been misvalued or mislisted, you can ask the appraiser to check the front of the value display within 60 days of the NOTICE DATE.

A request for review of the review may be requested from the Globe or the Payson Assessor`s Office, or print the form via the following links before the deadline for filing the complaint period printed on the notice. If you believe your property has been misclassified, please contact Attorney Scott F. Burns of davis Miles McGuire Gardner`s Real Estate Practice Group for an initial consultation to assess your case and properly prepare your appeal against the misclassification of the property. Please call Elizabeth Brook at 480.344.4596 or visit our website at davismiles.com for more information. [2] www.azcentral.com/arizonarepublic/news/articles/2011/03/14/20110314arizona-property-tax-hikes.html property taxes are used for the maintenance and operation of school districts, cities, community college districts, counties, and the state, as well as for secondary taxes on bonds, budget waivers, and special counties such as fires, flood control, and other limited-purpose districts. Tax rates are set by the Board of Supervisors no later than the third Monday in August of each year, and property tax returns are sent to the treasurer`s office in late September or early October. Scott F. Burns is a real estate attorney in Arizona and a licensed real estate agent in Arizona.

Scott regularly advises licensees, landlords and tenants in their commercial and residential real estate transactions and disputes. To contact Davis Mils McGuire Gardner Real Estate directly, please call 480.344.4596 or visit davismiles.com To determine the legal classification of your property, consult your latest notice of ownership from the treasurer`s office where your property is located, as shown below. All properties must be valued at the Full Present Value (FCV). Your property also has a limited property value (LPV). Property taxes are calculated on the LPV. The FCV will continue to appear on value notices, but will no longer be used to calculate the amount of property tax owing. The LPV is limited to an increase of 5% per year for packages whose rating has not changed. In cases where a change in the assessment has occurred (e.g., an addition to a building, a new building, an affidavit of affixing, an affidavit of disaffixture, a change in the boundaries of the property or a division or combination of parcels, etc.), the LPV is automatically recalculated on the basis of the LPV:FCV ratio of similar characteristics of the same use and is not limited to an increase of 5%. In Arizona, real estate is divided into nine classes. The purpose of this classification is to ensure the joint treatment of real property. In classifying real property, the state tries to avoid treating a non-commercial historic building (a Class 6 classification) as agricultural property (a Class 2 classification). Generally, a property is eligible for Class 3 (and can be credited up to $600) if the property in question is used as the owner`s principal residence or if it is rented or leased to a relative of the owner and used as the parent`s principal residence.

If your property meets this requirement, but does not have a Class 3 classification in its property assessment notice, it is likely to be misclassified. In a year when property taxes are rising for many Arizona landowners, one of the easiest ways arizona property owners can reduce their property taxes is to confirm that their properties are properly classified with the treasurer of the county where the property is located. In particular, misclassifying a property as a principal residence versus a rental property could result in a tax increase of up to $600 per year for the owner. [1] What`s particularly troubling for homeowners is that about 25% of rental properties in Arizona are misclassified by the state. [2] Therefore, any owner should ask themselves: “[i]t my place of residence is misclassified. Do I pay too much property taxes?!? » Send your forms by mail or email before the call deadline to: Joseph G. WilliamsGila County Assessor 1400 E Ash Street Globe, AZ 85501 Email:chext@gilacountyaz.gov [1] www.azleg.gov/legtext/50leg/2s/bills/hb2001h.pdf NOTICE OF VALUE Shipping Date: How can I send no later than 1. Determine the classification of my property in March of each year? [4] A parent includes: (1) the owner`s natural or adopted child or a descendant of the owner`s child; (2) the parent of the owner or an ancestor of the parent of the owner; (3) the owner`s son-in-law or step-parent; (4) the owner`s child or in-laws; or the natural or adopted brother of the owner. See S.R.A.

§42-12053(A). Petition for review of Real Estate Appraisal Form 82130.