On November 6, 2012, voters approved an amendment to the Arizona Constitution known as the Arizona Property Tax Assessed Valuation Amendment, or Proposition 117. The formal title of the measure was Senate Concurrent Resolution (“SCR”) 1025. The measure amended Article IX, Section 18 of the Arizona Constitution to provide that the limited property value (“LPV”) of all locally assessed properties cannot increase by more than 5% per year. Moreover, the LPV will be the only taxable value, and both primary and secondary taxes will be levied against the LPV. The change will not affect most centrally assessed taxpayers.
Proponents of the amendment argued that Proposition 117 would limit property tax liability. The measure, however, does nothing to limit tax rates, which play an important role in determining tax liability.
This change will take effect in Tax Year 2015, which has a valuation date of January 1, 2014. Presumably, you will receive your first Notice of Value reflecting this change in February of 2014, although legislation implementing the Constitutional amendment has not yet been enacted.
Tax Year 2014, with a valuation date of January 1, 2013, will be your last opportunity to appeal the full cash value of your locally assessed property under the current statutory guidelines. Please contact us if you would like to appeal the valuation of your property for Tax Year 2014.
Read Maricopa County Assessor’s explanation of Proposition 117 at http://mcassessor.maricopa.gov/assessor//pdf/prop117info.pdf.