Arizona is drawing in newcomers from far and wide, and it’s no wonder the state has become so popular. Its beautiful year-round weather is reason enough for many people to move to Arizona. Beyond that, it offers an array of employment and educational opportunities. Plenty of outdoor activities are also available for people to enjoy. On top of all that, the cost of living in Arizona is fairly low when compared to that in other states.
Exploring Arizona’s Property Taxes
As is the case virtually everywhere, home, business, and land owners in Arizona must pay property taxes. Reports show that the state’s property taxes are relatively low, so they don’t significantly drive up the cost of living. Still, it’s important to understand what those taxes entail if you’re going to work with new home builders in surprise az and make the state your home. Take a look at the following five points to help clarify the situation.
1) Proposition 117 Minimizes Tax Rate Hikes
Property values are soaring in many parts of Arizona. In most states, that would lead to significant surges in property taxes. Thanks to Proposition 117, though, that’s not the case in Arizona.
Developed more than a decade ago, this initiative is at least partially responsible for helping to keep Arizona property taxes in check. Per Proposition 117, property taxes can’t be raised more than 5 percent annually no matter how much property values increase. As such, property owners can take advantage of rising values without having to pay too dearly for them.
2) Property Classifications
Property classifications are another variable that factors into the equation. Properties are grouped into different categories, each of which has its own tax rate. This is a complex aspect in its own right because several classifications have been established. Those include agricultural properties, land that provides natural resources, historical properties, and commercial properties to name a few. Primary residences get a lower tax rate than other classifications.
3) Arizona Property Taxes Are Complicated
Another point to keep in mind is that Arizona’s property taxes are complicated. They’ve been deemed among the most complex in the nation. Tax rates in Arizona are based on two distinct figures rather than one. One is the full cash value, also known as the secondary value. The other is the limited value. Those two figures are based on several factors and added together to determine theproperty taxes you owe.
4) Exemptions and Deductions
Certain exemptions and deductions are available for some Arizona property owners as well. Those include primary residence, senior citizens, veterans, and disabled persons exemptions. To qualify for exemptions and deductions, property owners must meet certain prerequisites and prove their eligibility. For those who qualify, these special considerations can further reduce the cost of property taxes.
5) The Right to Appeal
Additionally, Arizona property owners have the right to appeal their tax assessments. If you feel your property taxes have been assessed incorrectly, you can go through certain channels to plead your case. If you choose to do so, you’ll need to provide proof that the assessment is incorrect. That may include documentation of damage or other issues that could affect the value of your property. Pay close attention your tax assessments to be sure they’re correct, and consider learning more about the appeals process in your area just in case the need arises.
Understanding Your Arizona Property Taxes
Arizona’s property taxes are lower than those in many other states. They’re also more complicated. Properties are classified in several different ways, and taxes are calculated based on how a property is used as well as other factors. Thanks to Proposition 117, there’s a cap on how much your property taxes can increase each year. Certain deductions and exemptions may also apply. If you feel your taxes are inaccurate, you can appeal. Those are a few of the main factors that affect your Arizona property taxes, but consider digging deeper to understand the full scope of the situation.
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