WELCOME Paul D. Petersen, Assessor 2016 Property Valuation Open Forum Presented by: Tim Boncoskey,...

WELCOME

Paul D. Petersen, Assessor

2016 Property Valuation

Open ForumPresented by:

Tim Boncoskey, Chief Deputy AssessorLesley Kratz, Senior Advisor Assessor

Marc Kuffner, Assistant Superintendent MCESA

Property TypesPaul D. Petersen, Assessor

Paul D. Petersen, Assessor 2015 Tax Roll

Timeline


Full Cash AnalysisTY 14-15 (FY 15-16)

Comparison

5


PRELIMINARY TY2015 (FY15-16) Secondary

Abstract

Secondary NAV Change

14.70%


PRELIMINARY TY2015 (FY15-16) Primary

Abstract

Primary NAV Change 3.19%

Number Must Be Used for ALL

Secondary/Primary Taxes

Paul D. Petersen, Assessor Primary (LPV) Change

By Municipality

Paul D. Petersen, Assessor TY2015 (FY15-16)

City Summary


Primary (LPV) Change By Elementary School

District


Primary (LPV) ChangeBy High School

District


Primary (LPV) ChangeBy Elementary School

District Metro

Paul D. Petersen, Assessor TY 2015 (FY15-16)

School Summary

Paul D. Petersen, Assessor 2016 Tax Roll

Timeline

TY 15-16 ComparisonFull Cash Value Analysis


Property Type

Median Values FCV % LPV %

FCV 2016 FCV 2015 Change Change

VACANT LAND 31,500 27,900 12.9% 4.30%

SINGLE FAMILY RESIDENTIAL 172,300 161,500 6.69% 4.93%

CONDOMINIUM 100,100 91,000 10.00% 5.00%

APARTMENTS 146,100 128,800 13.43% 5.00%

COMMERCIAL 434,100 381,000 13.94% 3.24%

MANUFACTURED HOUSING 59,000 56,300 4.80% 3.75%

All exempt property, new construction, additions, alterations orany change in use have been removed from this analysis


PRELIMINARY2016 Median by

Property Type


TY 2016 Residential FCV

Percent Change By City






Percent Change By ZIP Code



Percent Change By ZIP Code

20

42,460

52,866

42,460

25,892

11,37910,998

42,460

52,866 54,485 46,165

25,892

11,379

6,302

2007

2008

2009 2010 2011

2012

2013

2014

Paul D. Petersen, Assessor Foreclosures

2007-2014


TY 2016 Land FCVPercent Change By

City


TY 2016 Land FCVPercent Change By

City


TY 2016 Commercial FCV



TY 2016 Commercial FCV


9% of the 2009 Sales are REO


Commercial

26

ApartmentsPaul D. Petersen, Assessor

2-12 Unit Apartments

27


13+ Unit Apartments


PROPOSITION 117 &

SINGLE YEAR TAX ROLL LEGISLATION


Proposition 117

(3) (b) For the purposes of taxes levied beginning in tax year 2015, the value of real property and improvements, including mobile homes, used for all ad valorem taxes shall be the lesser of the full cash value of the property or an amount five per cent greater than the value of property determined pursuant to this subsection for the prior year.(4) The legislature shall by law provide a method of determining the value, subject to the provisions of subsection (3), of new property.(5) The limitation on increases in the value of property prescribed in subsection (3) does not apply to equalization orders that the legislature specifically exempts by law from such limitation.(6) Subsection (3) does not apply to:

(a) Property used in the business of patented or unpatented producing mines and the mills and the smelters operated in connection with the mines. (b) Producing oil, gas and geothermal interests. (c) Real property, improvements thereto and personal property used thereon used in the operation of telephone, telegraph, gas, water and electric utility companies. (d) Aircraft that is regularly scheduled and operated by an airline company for the primary purpose of carrying persons or property for hire in interstate, intrastate or international transportation.(e) Standing timber. (f) Property used in the operation of pipelines. (g) Personal property regardless of use except mobile homes.

Constitution Article 18


Proposition 117

42-11001. DefinitionsIn chapters 11 through 19 of this title, unless the context otherwise requires:1. "Assessed valuation" means the value derived by applying the applicable percentage prescribed by chapter 15, article 1 of this title to the full cash value or limited property value of the property, as applicable…

6. "Full cash value" for property tax purposes means the value determined as prescribed by statute. If no statutory method is prescribed, full cash value is synonymous with market value which means the estimate of value that is derived annually by using standard appraisal methods and techniques. Full cash value is the basis for assessing, fixing, determining and levying primary and secondary property taxes on property described in section 42-13304. Full cash value shall not be greater than market value regardless of the method prescribed to determine value for property tax purposes.7. "Limited property value" means the value determined pursuant to section 42-13301. Limited property value is the basis for:(a) Computing levy limitations for counties, cities, towns and community college districts.(b) Assessing, fixing, determining and levying primary and secondary property taxes on all property except property described in section 42-13304.8. "Net assessed value" means the assessed value minus any exempt property.

ARS § 42-11001


Proposition 117

ARS § 42-1500142-15001. Assessed valuation of class one propertyThe assessed valuation of class one property percentage of its full cash value or limited valuation, as applicable: 1.Tax Year 2006 – 25%2.Tax Year 2007 – 24.5%3. Tax Year 2008 – 24% 4. Tax Year 2009 - 23%5. Tax Year 2010 - 22%6. Tax Year 2011 - 21 %7. Tax Year 2012 - 20%8. Tax Year 2013 - 19.5%9. Tax Year 2014 - 19%10. Tax Year 2015 - 18.5%11. Tax Year 2016 – 18%


Proposition 117

ARS § 42-15002

42-15001. Assessed valuation of class two propertyThe assessed valuation of class two property percentage of its full cash value or limited valuation, as applicable:

1.Tax Year 2015 – 16%2. Tax Year 2016 – 15%


Proposition 117

ARS § 42-1705242-17052. Values furnished by county assessorA. On or before February 10 of the tax year, the county assessor shall transmit and certify to the property tax oversight commission and to the governing body of the political subdivision or district in the county the values that are required to compute the levy limit prescribed by sections 42-17051 and 48-807. For the purposes of this section, these values shall not be changed for the official calculation of levy limits and tax rates after February 10 without the approval of the property tax oversight commission. These values shall include:1. The finally equalized valuation of all property, less Estimated Exemptions, appearing on the tax roll for the current tax year to be used to fix, levy and assess the political subdivision's taxes.2. The Estimated value of the property on the personal property tax roll. B. On or before February 10 of the tax year, the county assessor shall determine the limited property value for the current tax year of each school district in the county and shall transmit the values to the county school superintendent to assist the superintendent in computing equalization assistance for education as provided in section 15-991.


Proposition 117

TAX JURISDICTION BUDGETING• Proposition 117 increases Limited Property Value 5%

from previous year but cannot exceed Full Cash Value (cap).

• Proposition 117 DOES NOT increase Net Assessed Value 5%.

• Impacts on Net Assessed Value• Assessment Ratio Legislative Changes• Exemptions • Personal Property • New Property


Single Year

• High Appeals Caused Delays:

• Appeals Down By 55 per cent

• The Great Recession:

• When Markets Plummet; Yet Values Lag Two (2) Years.


Single Year Roll

• More Accurate:• Values – Closer to Notice

• Understandable:• Values prepared, noticed, and taxed within the

same year

• Responsive: • Values reflected in the market


• No More Valuation Year.

• Mail Business Personal Property (BPP) Reports January 1

• February 2: Notice of Valuation• 30 Days to Appeal• DOR Extension – 15 Days• Mobile Homes


• Due to the ability to pick up new property and tax them the next year, supplemental notices are no longer needed.

Paul D. Petersen, Assessor Single Year Roll

Board of Equalization

• April 30: Assessor Ruling on Petition

• Boards of Equalization:

• June 20: County Board of Equalization

• June 30: State Board of Equalization


Single Year RollProposed Tax Roll

Timeline


TAX COURTLITIGATION

Paul D. Petersen, Assessor Tax Court Litigation

Summary

• Under the current statutory system, property owners who are dissatisfied with their property valuation or legal classification may appeal directly to Court.

• The deadline to appeal to Court is December 15 or within 60 days after the date the State Board of Equalization mails its Decision, whichever is later.

Paul D. Petersen, Assessor Tax Court Litigation

Summary

• Tax Court (TX):• A record tax case requires lawyer representation. The filing is not only an appeal, it is a

formal lawsuit filed against the County and/or State of Arizona. • All of the formalities of a lawsuit are followed beginning with the filing of a Complaint,

Answer, and formal disclosure/discovery.• The average Tax Court case may stay in litigation for two or more years.

• Tax Court – Small Claims (ST):• Attorney representation is not required to proceed in a Small Claims Tax appeal. Owners

may represent themselves in small claims tax cases, or hire an agent approved by the Court to represent them.

• Small Claims Tax matters begin the same as in a record Tax Court case, with the filing of a Complaint and an Answer. The Court will typically set the matter for trial within sixty to ninety days after the Answer is filed.

• Because these involve small claims, the proceedings are more informal. The purpose is to give the property owner his day in court. The owner must still provide the Assessor with evidence to support their requested change.

• The Assessor will make a settlement recommendation on ALL Small Claims Tax cases. • The average Small Claims Tax case lasts approximately six months.


Tax Court LitigationTotal Cases Filed

2000-2014


GOVERNMENT PROPERTY LEASE EXCISE TAX (GPLET)


42-6202. Commercial government property lease excise tax; database

A. A government lessor shall levy and the county treasurer shall collect an annual excise tax on each prime lessee for the use or occupancy of each government lessor's government property improvement…

D. The department of revenue shall maintain a public database by county, city and town of all government property leases that are subject to the tax under this article.

ARS § 42-6202

GPLET’S


42-6206. Leases and development agreements; notice of tax liability; approval requirements; default

E. No later than June 30 of each year the government lessor shall provide the county assessor with a complete list of development agreements

ARS § 42-6206

GPLET’S


Takeaways

• GPLET information received by municipalities• Assessor MUST provide to MCESA for inclusion

in Budget• Leases can be one of the following:

• Abated for up to 8 years per ARS §42-6209• Exempt per ARS §42-6208• Excise Tax per ARS §42-6203

• Assessor is the “Go Between”

GPLET’S


TAX RATES / LEVYS


Levy (Taxable) Amount / Assessed Value = Tax Rate

Tax Rates / Levys

It’s Easy


• Equalization/State Aid/MQTR• Budgets• Qualifying Tax Rate• Net Assessed Values• Bonds and Overrides• Cash• Encumbrances• Receivables• Delinquencies• Rollovers• Etc… and more

Tax Rates / Levys

Yeah, Real Easy


Funding Sources:

1.Local property tax collections.

2.State property tax, better known as the county equalization tax.

3.State’s general fund.Basically: If a school district does not receive enough money from local property taxes to fund it’s schools, the state’s general fund, which has been supplemented by the state equalization property tax, makes up the difference in the funding needed.

Tax Rates / Levys

Funding


• The legislature sets the Qualifying Tax Rate (QTR).• This is the tax rate the legislature uses to determine

how much money a school district will get from the state, if any.

• The QTR is multiplied by each district’s Net Assessed Property Value (NAV). The answer to that equation determines the source(s) of a school district’s funds.

• (Lessor Of) RCL/DSL + DAA = Equalization Base.

Tax Rates / Levys

Equalization Rate


If the equalization base funding level is greater than QTR x NAV, local property taxes will not be adequate to fund the district’s budget. The remaining amount of funding is provided by the state’s general fund. This is called basic state aid.

If the equalization base is less that QTR x NAV, no basic state aid is provided and the primary property tax rate is set at the level required to generate the equalization base.

Tax Rates / Levys

Equalization / State Aid


• February 10th – The Magic Date!

• Assessor must provide to County School Superintendents the values to be used for the upcoming tax year on this date.

• Primary NAV – Used to calculate both the primary and secondary school district tax rate.• Prop 117• There is still a secondary NAV, not used

anymore for tax setting.

Tax Rates / Levys

Net Assessed Value (NAV)


2016 Appeal Deadline

April 21, 2015

THANK YOU!MARICOPA COUNTY ASSESSOR’S OFFICE

Tim Boncoskey | [email protected] |602-372-3796

Lesley Kratz |[email protected] | 602-506-7154

MARICOPA COUNTY EDUCATION SERVICE AGENCY

Marc Kuffner | [email protected]

mailto:[email protected]



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WELCOME Paul D. Petersen, Assessor 2016 Property Valuation Open Forum Presented by: Tim Boncoskey,...

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