January 13, 2012

 Real property – land and improvements  Personal property – everything not included in real property

 Class One – Industrial & Commercial  Class Two – Agricultural  Class Three – Residential  Class Four – Residential Rental

 Class Five – Railroads and Airlines  Class Six – Historic, foreign trade zones, enterprise zones  Class Seven – Commercial historic  Class Eight – Rental historic  Class Nine – Improvements located on fed, state, county or city property

 Class 1 – 34%  Class 2 – 7%  Class %  Class 4 - 7%

 Class 1 – 36%  Class 2 - 6%  Class 3 – 47%  Class 4 – 9%

 Class 1 – 20%  Class 2 – 16%  Class 3 – 10%  Class 4 – 10%  Class 5 – 15%  Class 6 – 5%  Class 7 – 20%  Class 8 – 10%  Class 9 – 1%

Residential Property Full cash value – $150,000 Net assessed value would be $15,000

Class one – 2005 – 25% 2011 – 20% Class five – % 2011 – 15%

 Primary (limited) values  Secondary (full cash) values

 Limited property value  Value of preceding year plus the greater of either -ten percent of that value - 25% of difference between full cash value current year and limited value in the preceding year  Cannot exceed secondary value

 Market value  No limit to the increase from prior year

 Centrally assessed  Locally assessed

 Levy – the amount of money raised against property in a district  Primary – funds operations  Secondary – funds debt service and special districts

 Counties, cities and community college districts are restricted by a levy limit  School districts are not limited by the constitution, but are limited by the legislature each year

 Levy limit calculated off a base year of 1979 and reset in 2006  Levy limit increases each year by 2% plus new construction

Maximum allow levy ,701,477 Multiplied by 1.024,795,507 Net assessed value ,801,750 Net assessed value ,070,873 Max allowable tax rate 4,795,507/12,801, Max levy limit for x.37464,896,349 Actual primary levy2,943,561 Under levy limit1,952,788 Tax rate.2252

 Class 3 property – combined primary tax from all jurisdictions cannot exceed 1% of primary value  In cases where it exceeds that amount, the school district taxes are reduced and the state provides additional aid to that school district

 State pays 35% of primary property tax for class 3 property  Known as the “homeowners rebate”  Homeowners pay lower primary property tax rate than other property owners

Primary Assessed value - $150,000 Net assessed value - $15,000 Secondary Assessed value - $200,000 Net assessed value - $20,000 Primary property tax rate – Secondary property tax rate –

Primary - 15,000 x /100 = 1, Less homeowners rebate Net primary – Secondary - 20,000 x /100 = Total – 1,

 February 10 – Values released  Third Monday in August – property tax rates set  October 1 – First half taxes due  December 31 – Full year due  March 1 – Second half taxes due  September 30 – cutoff for new construction  February – valuation notices sent

 Owner may appeal their valuation  Must file an appeal within 60 days of assessor notice  You can either meet with an assessor of file written evidence to support your claim  If appeal is denied, can appeal to the State Board of Equalization

 Budget to the rate  Budget to the levy

 Primary property tax rate.22  Secondary property tax rate 1.37  Total rate – 1.59  Good times - $33.7 million  Tough times - $20.8 million

 Primary levy – $3.6 million  Secondary levy - $30.1 million  Good times rate – 1.59  Tough times rate – 2.57

Maricopa County – 2008  Primary valuation - $44,881,602,698  Secondary valuation - $58,303,635,287 Maricopa County – 2011  Primary valuation - $38,491,699,290  Secondary valuation - $38,760,296,498 Decrease of 14% and 34% respectively

 Predicted 14% decline for Fy12-13  In Glendale we are assuming a further 7% decline for FY13-14

 Business pay less  Other changes