Yavapai County Assessor Pam Pearsall soon will send out 2017 tax year property value notices on about 160,000 properties.
Property values throughout the county have seen a significant rebound beginning in 2012. The rate of appreciation in Yavapai County for an average residential home has begun to slow.
The median percent change for the 2017 tax year is about 5 percent countywide. Some market areas went up more and some less. The notices were sent to property owners on Feb. 19.
Due to the passage of the voter mandated Proposition 117 in the 2012 election, the implementation of that new law took effect for the 2016 tax year notice of value.
The most important aspect of the new law is that all property taxes are now calculated from only the Limited Property Value (LPV) portion of the value which is capped at an annual increase not to exceed 5 percent from the previous year's LPV value.
Assessor Pearsall has been working on educating taxpayers and various boards and taxing jurisdictions on the implementation of this new law and its anticipated effect of "smoothing out" volatile real estate cycles as they relate to property tax.
"I am very hopeful in how this new property tax law will aide both taxpayers and taxing entities in better budget planning" said Assessor Pearsall.
The notice of value change that taxpayers will receive for the 2017 tax year represent sales occurring between January 1, 2014 and June 30th, 2015. By state law the Assessor is still required to notice the Full Cash Value (FCV) which seeks to approximate market value, while the taxable portion of the value, or LPV, cannot increase more than 5 percent as decided by the voters.
The Assessor reminds property owners that they may petition and appeal the market (Full Cash Value) portion of their noticed value, while the Limited Property Value itself cannot be appealed.
While Assessor Pearsall's office is responsible for calculating a market value (FCV) for a property, it is the various taxing jurisdictions such as schools, fire districts and others who annually adjust their tax rates against the assessed value (LPV) to fund their budgets.
Depending on their unique budget requirements for a given tax year there is seldom a direct correlation between assessed value change and tax bill change.
"We're seeing a continuation of appreciation in property values for the 2017 tax year and homeowners may be relieved to be recovering some lost market value that vanished during the burst in the housing bubble," Assessor Pearsall noted, "...and our job is to respond to these value changes." Property owners are invited to contact either the Prescott Assessors Office (771-3220) or the Verde Valley Office (639-8121) with any questions related to the 2017 Notice of Value.