Appeals Process for Real Property
The administrative appeal process (130-Instructions / 130-Residential Instructions) in Arizona allows a taxpayer to request a review of the Assessor's opinion of the full cash value (FCV) or the legal classification of the property, but not of the limited property value (LPV).
In 1995, the January 1 lien date became the valuation date for the next year's roll - 1996. ARS 42-11001 states that the "valuation date, for purposes of property on the secured tax roll, means January 1 of the year preceding the year in which taxes are levied." Essentially, this means that the value placed on the property on January 1 will be the value used to calculate property taxes for the following tax year.
Previously, the valuation date of January 1 was for the same year as the year in which taxes were levied. Applying this concept further, the January 1, 1996, lien date is the valuation date for the 1997 tax year. The valuation date was changed to allow the administrative appeals process to run its course completely before the tax roll is certified, the tax base is calculated, and taxes are levied (based on the values on the roll). This allows counties to budget based on actual property tax revenues rather than projected revenues.
Property owners are notified in writing by the Assessor as to the full cash value (FCV) of the property and the limited property value (LPV). The notices must be mailed by March 1 of the valuation year (year preceding the tax year). The values reported are to be used for the following tax year. Property owners dissatisfied with the value or classification of their property by the County Assessor may appeal by following a strict appeals procedure and timetable. There is an administrative appeal process and a judicial appeal process.