Assessed Value

• In Arizona, property taxes on properties occupied by owners are taxed based on assessed value, not current market value. Owner-occupied residential properties and residential rental property are assessed at 10 percent of full cash value. The average tax rate before exemptions and rebates is about 1.3 percent of market value. Assessors send updated evaluations of the value of homes each year and property taxes are computed on the home value. Arizona property taxes are collected twice a year.
  
  

Residential Property

• Residential property assessors use computerized systems to assess the value of single family homes for property tax purposes in Arizona. Computer assistance decreases the amount of human error that occurred when valuation was completed using hand processing and calculators. Mass appraisal and sales analysis are used to appraise the homes in question. Mass appraisal is done by computer on thousands of properties in a set amount of time. Sales analysis determines the average sales price per square foot using computers. The price is adjusted for specific differences individual to each home. Finding out which method was used on a specific home involves contacting the County Assessor's Office.
  
  

Personal Property Tax

• Personal property is tangible and intangible property not categorized under real estate. Real property is real estate, referring to the rights to land and any improvements made on or to that land. For example, built-in air conditioning is real property. Personal property includes such things as commercial, industrial, residential and agricultural items. For example, window air conditioners are personal property.
  
  

Valuation of Personal Property

• Acquisition cost is the starting point of valuating personal property. Added together are the costs of obtaining the property, the cost of the item, the cost of delivery and installation of the item and tax paid on the item. Acquisition costs are dependent on trending, or current substitution costs. Valuation of personal property is next based on life years, or expected life of the item. Valuation is next assessed using depreciation or loss of value over time.
  
  

Special Personal Property

• Assessed under their own valuation systems are aircraft, exempt animals, taxable animals, artwork, billboards, cable television, computer-driven equipment, computers and peripheral equipment, construction work in process, environmental equipment, improvements on possessory rights, leased equipment, leasehold improvements, libraries, rebuild or refurbishment, security systems, semiconductor equipment, signs, spare parts, supplies, tools/molds/dies/jigs, used equipment, vaults and vault doors, vehicle mounted equipment, rental video games/DVDs/tapes, walk-in coolers/freezers and watercraft. Mobile homes are assessed at current market value.