Possible Tax Increase

This time of year we receive a postcard in the mail for our "Property Notice of Valuation" which other than a quick review, there is no other action required. But this year we are going to receive a letter with an affidavit regarding the new valuation format. If you do not take action, you could be at risk for a $600.00 tax increase.

Jobs Bill HB2001 was signed by Gov Brewer on February 17, 2011 and is intended to help businesses. But the bill also included some changes in the home ownership taxes. Under the new clause home owners will lose The State General Fund Credit or rebate unless they sign and return the affidavit beginning this year. The affidavit must be completed and returned to the County Assessor within 60 days or the residential property will be reclassified as a Class 4 rental and your property taxes will go up as much $600.00 for the year.

Class 3 properties include owner occupied Primary residences and vacation/second homes. Rental properties fall into the Class 4 category which does not receive the State Aid Credit from the General Fund. However Under the new “jobs bill” vacation and second homes will be reclassified to Class 4 and will lose the rebate/credit resulting in increased property taxes.

If you have questions regarding your property taxes, I would encourage you to speak to a local tax expert or contact Maricopa County for more information.