Assessor contends voter-approved proposition aids property owners
Yavapai County Assessor Pam Pearsall is preparing to send out some 160,000 Notices of Value for tax year 2016. By law, each county assessor must annually notify property owners of their changing market value (Full Cash Value) and taxable value (Limited Property Value).
In this year's 2016 tax year valuation cycle, which is updated during the 2014 calendar year, Assessor Pearsall has noticed that the voter mandated Proposition 117 is working to shield property owners from swings in real estate values. This is especially true in the current increasing market.
Arizona has a complicated property tax system, she said. One of those complications is that property in Arizona receives two valuations: Full Cash Value (FCV) and Limited Property Value (LPV). The Constitution requires that the FCV of all property valued by the Assessor approximate current market value on a mass appraisal basis. The Arizona Property Tax Assessed Valuation Amendment, also known as Proposition 117, was passed by voters in 2012. As a result, beginning in tax year 2015, the calculation of the Limited Property Value (LPV) changed and it is now the single valuation used for taxation.
The new law caps the annual growth in the Limited Property Value of locally assessed property, excluding properties which have significant changes from the previous year such as new construction or parcel splits. The formal title of the measure was Senate Concurrent Resolution 1025.
The voter mandated cap on the growth of Limited Property Value (LPV) cannot exceed +5 percent for parcels that are unchanged from the previous year. However, the LPV value cannot exceed the Full Cash Value (FCV).
Assessor Pearsall was pleased to see that for the notices being sent out this week that almost 147,000 properties (92 percent) received the benefit of the Prop 117 taxable value cap. This moderated taxable value will help both property owners and taxing jurisdictions to anticipate, and plan for, more predictable future value changes.
Property owners may still petition the noticed Full Cash Value as before. The FCV should approximate the current market value of your property as of Jan. 1, 2015. However, the Assessor encourages taxpayers to closely notice the change in, and value of, the 2016 Limited Property Value (LPV) which is now the single taxable value. Also included in this year's Notice of Value is an informative message from the Assessor which provides more detailed information. Assessor Pearsall reminds property owners that they may contact her office with any questions. Also available on the web at: http://www.yavapai.us/assessor/.