Article written by Pam Pearsall, Yavapai County Assessor with Joni Dahlstrom, sedonaeye.com Staff Writer.    

The Property Tax System relies on two numbers to determine the amount of your tax..

• The value of your property (or “property valuation” in Assessor-speak).

The Assessor has a constitutional obligation to set your property value based on market information. The Assessor does not create that value; Value is based upon the marketplace.

• The tax rate is confusing for many Arizonans because there are a lot of jurisdictions in most property tax bills such as schools, county, college, fire district, and others.
• Most of these jurisdictions have some discretion in the taxing rate; i.e. one point two percent (1.2%) to three point four percent (3.4%) using a fire district example.  So the actual rates for each jurisdiction, and all the jurisdictions as a whole, can vary over time.
• You will find the total amount owed to each jurisdiction in the middle section of your tax bill.

Now for an “only in Arizona” two-step: The property valuations are completed first, based on market rates. Then that money is made available to each jurisdiction based upon the property taxes they are entitled to.

This is really important so here is an example:

• .Department A has a budget of $1,000,000.

When the properties in that area are valued collectively at $100,000,000, Department A can set a 1% tax rate.

If  Department A’s budget stays the same and properties double in value to $200,000,000 then they can reduce the tax rate for their department to a half percent (0.5%).

If the value of the properties fall by half to $50,000,000 then Department A will set the rate at two percent (2%). Another way to look at it, in Arizona, your tax rate doesn’t matter that much, as it can change every two years.

The total amount of taxes paid is not dependent upon the rate but upon the total amount of money required by the departments or tax jurisdictions; they set the rate after determining their budgets  in order to raise the required funds.

• To add one more layer of complexity, as previously mentioned, there are numerous taxing jurisdictions for almost all properties..

Where the value of your property comes into play, it is in dividing each property owner’s share of the total budget.  As an example:

• .Ten property owners live in the jurisdiction of Department B and all of their properties together are valued $1,000,000.
• There is a one percent (1%) tax rate on their properties to raise the $10,000, required by their department.  But one of those properties is worth $550,000.; the others are worth$50,000 each.
• The larger property owner would pay $5,500, while the other nine would only pay $500 each.

In other words, the property values simply determine how the tax is divided amongst the tax payers. This happens after the tax rate is determined by each tax jurisdiction.

Now the Yavapai County Assessor makes sure all of the valuations and taxes are applied correctly and according to the law. The Assessor does not set the budgets, the rates and must use a formula in assigning the value of your property but has almost no discretion in the amount of your tax bill.

• If you want to reduce your tax rates, you need to get involved in local government. The fiscal year for local government begins July 1.  Before that, find out when and where the boards that control your tax amounts and rates meet.  For instance, find out when and where Sedona Fire District meets and or the local school board.
• Learn about their budget process and encourage your neighbors to get involved. Help those board members find ways to run their departments more efficiently, suggest ways that they can save funds and cut their budgets. When budgets are trimmed, your property tax can go down.
• The market value of your property rising or falling is far less important in this equation than the amount local tax jurisdictions charge. If you believe the tax for the local high school is too high, get involved.
• Ask for budget reassessments of local tax jurisdictions that raise or reduce your taxes. Citizen involvement is the only practical way to reduce property taxes in Arizona.

If you have any questions please feel free to contact Pam.pearsall@co.yavapai.az.us and or (928) 771-3220.

You can also visit the website for more information:    www.co.yavapai.az.us/Assessor.aspx.