Archive for Scottsdale Homeowner
FAQ for Scottsdale Arizona Property Taxes
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Affecting residential real estate in the cities of Scottsdale, Phoenix and Paradise Valley – Maricopa County
Arizona Property Taxes can be very confusing for three main reasons: 1. Arizona property taxes are not levied on the market value of a home but on the assessed value of a home, 2. There are numerous unfamiliar terms in the property tax statements and valuations, and, 3. Property Taxes are billed and due in arrears. Review the flow chart and read the FAQ you should get a more clear understanding.
How are property taxes computed?
The burning question everyone has is naturally related to their property taxes and how much they will be. Here is the formula:
Full Cash Value x Assessment Ratio = Assessed Value x Tax Rate = Annual Property Tax
The general tax rate is about 1.3% of Full Cash Value. For example: A home with a Full Cash Value of $500,000 will in general have property taxes of approximately $6500.
$500,000 x 10% = $50,000 x 13% = $6,500 which is the same as 1.3% of Full Cash Value
What is the primary tax rate?
Tax rates vary by city and sometimes subdivision. In general, one can expect to pay about 1.3% of the Full Cash Value as determined by the tax assessor. The tax rates are set in August of each year and taxes are billed in September. You can review the all the 2008 tax rates here. You may look up an address or a parcel number here to see the current property taxes.
What is the meaning of “Full Cash Value” ?
Full Cash Value is the current market value of the land and any improvements as estimated by the County Tax Assessor using computerized standard appraisal methods. This value is used to calculate secondary taxes for budget overrides, voter approved bonds and limited purpose districts. The Full Cash Value has nothing to do with the sales price of a home but the sales prices are used to determine the Full Cash Value.
What is the meaning of “Limited Property Value”?
Limited Property Value is determined by the State Legislature using a mathematical formula that limits the annual increases. The Limited Property Value is the basis for computing the primary taxes used to provide operational expenses for the state, county, cities and schools shown on your tax statement. The Limited Value cannot be greater than the Full Cash Value.
Overview Chart of Arizona’s Property Tax System
What is the “Assessed Value”?
Your property tax is not computed on the Full Cash Value but on the Assessed Value of a property.
How is the "Assessed Value" determined?
The Assessed Value of each property is determined by multiplying the Full Cash Value by the assessment ratio. Residential homes are assessed at 10% and Vacant Land is assessed at 16%.
What is the "Assessment Ratio"?
The assessment ratio is a percentage based on the property use. It is applied to the Full Cash Value to determine the assessed value and is set by the State Legislature. The assessment ratio for an owner occupied residential property is 10%. For example, if you have an owner occupied residential property with a Full Cash Value of $500,000, the property tax will be based on the assessed value of $50,000 .
When you purchase a property mid year – who pays the property tax?
When you purchase a home mid year, the property taxes will not have been paid (the first property tax bill is not due until October). Property taxes are prorated to the close of escrow so the Settlement Statement will show a Seller credit to the Buyer for property taxes for the part of the year prior to close of escrow. This means that the new buyer will be responsible for the entire year’s property taxes when they come due.
When are Property Taxes Billed and Due?
Maricopa County property taxes are confusing because they are billed in September of the year for which they apply. The first tax payment is due Oct 1 and is delinquent on Nov 1. The second tax payment is due March 1 of the following year and is delinquent on May 1. If you fail to pay the first half tax in October but you pay in full by December 31 of that year, then you will not be assessed any interest.
Are there any property tax exemptions?
Yes there are tax exemptions for widows, widowers and totally disabled persons subject to conditions and limitations. Read the Arizona statute. If you want to file for this exemption, download this form.
Is Senior assistance available?
Yes, if one owner is at least 65, you may apply to freeze the Full Cash Value of your primary residence. You must have had this property as a primary residence for at least two years prior to application and your income (from all sources and averaging for previous 3 years) cannot exceed $30,576 for a single owner or $38,220 for two or more owners. Download application.
In addition, the Elderly Assistance Fund, established in 2007 is available to reduce the property tax of qualified elderly taxpayers. More info here
What is meant by “Real Property”:
Real Property includes land, buildings and other improvements on the property (i.e., swimming pools).
What does “Legal Class” mean?
The Legal Class is determined by the property type or use (i.e., owner occupied residential, residential rental, commercial, vacant land, multi-use).
What are "Special Districts"?
Special districts have a limited purpose such as flood control, fire or irrigation.
Scottsdale Homeowners Benefit from Emergency Lockbox
Posted by: | CommentsTechnorati Tags: Scottsdale Homeowner,Lockbox for Seniors,Scottsdale Area Association of Realtors,Disabled Residents of Scottsdale,emergency lockbox
Do you have a parent or a friend who could benefit from this unique program for Scottsdale homeowners?The Lockbox for Seniors Program was created by the Housing Opportunities Committee at the Scottsdale Area Association of REALTORS and is designed to give the Scottsdale Police Department and Scottsdale Fire Department access to the homes of Seniors or Disabled Residents of Scottsdale and Fountain Hills in case of emergency. Computers in police and fire vehicles will display information about the location of the lockbox and the code so that emergency responders can use a key to enter the premises instead of breaking down the door. The program also allows Police to perform wellness checks upon proper authorization.
The lockbox is provided at a minimal charge of $25 and is installed by a Scottsdale Police Officer. During the months of May and June Unique Scottsdale Homes is going to sponsor 10 lockboxes. This is just one way we can give back to this wonderful community of Scottsdale. Just contact Melissa O’Connell to make arrangements for you, your friend or parent to get a lockbox installed in your Scottsdale or Fountain Hills home.
Snowbirds Continue to Buy Scottsdale Luxury Homes
Posted by: | CommentsWhy Scottsdale is One of The Greatest Places to Live.
Have you ever heard of an Arizona snowbird? The wikipedia describes the snowbird as people from Canada and the Northeastern or Midwestern United States who spend a large portion of the winter months in Arizona, Florida or other regions of the Sunbelt. Snowbirds typically come just for a few weeks or a month and before they realize what has happened, they become addicted. Addiction to Scottsdale results in spending their leisure days searching for the perfect winter home which is usually defined as a luxury home whether it is a condo or a single family residence. Snowbirds and winter visitors have been buying second homes in Scottsdale since before Scottsdale became a city in 1897 and I don’t see any change in this trend.After living in Arizona for 14 years, I can easily understand why Scottsdale is inundated with snowbirds every winter. Scottsdale is a wonderful place to live for many reasons. Apparently the majority consensus agrees with me as Scottsdale was just ranked 7th in the Money magazines list of top 100 places to live. Money magazine’s reasons are based on statistics but there are other reasons that are more subjective but just as true. Here are my reasons and those expressed by my clients over the years why Scottsdale is a great place to live.
- The weather is fantastic 75% of the year – Imagine eating outside in balmy dry weather with no bugs or an early morning bike ride along the Scottsdale green belt bike path with breakfast along the way.
- The color of the sky is incredibly blue.
- The horizon stretches forever.
- Sunsets are spectacular.
- Desert plants and animals are unique and lush in their own way
- Outdoor activities in abundance include golf, hiking, jeep rides, bicycling, hot air balloons, etc.
- Some of the best golfing in the world.
- An art mecca with more than 125 art galleries in Scottsdale alone.
- Numerous choices for fine dining – I guarantee you won’t get bored.
- Scottsdale real estate is still affordable. California hosts 23 of the top 25 places with the priciest homes, with median home sales prices ranging from $678,500 to $1,362,500. Scottsdale’s median home price is only $370,000 and you can still buy a 3 bedroom 2 bath home for $325,000. In fact some of these older areas will be not always be so affordable because of all the redevelopment happening in downtown Scottsdale.
- Good public schools and superb private schools.
- Fantastic shopping.
If you like living in Scottsdale, I’m sure you could add to my list. Email me with your suggestions and I’ll include them. Don’t forget to let me know if I can use your name.If you visited the Money magazine website you may have noted that several of the blog comments were negative. Let me state for the record that as a real estate consultant specializing in Scottsdale, I have met mostly wonderful people who I would love to have as my neighbors. In any city, especially one that offers a high standard of living, there will always be those people who are too materialistic and too full of themselves that no one wants living next door. But as one blogger said, “we need to make our own reality”. My reality says: People are people and every city has all kinds. Scottsdale is a wonderful place to call home and I think Scottsdale is fortunate to have a diverse population of very friendly and authentic individuals from all over the country and world. Life is what we make it, right?
| Median Family Income | $84,747 |
| State Income Tax (highest bracket) | 5.04% |
| Job Growth (2000-2006) | 8.75% |
| Median Home Price | $370,000 |
| Home Price Gain (2004-2005) | 25.4% |
| Personal Crime Risk (100 is national average) | 52 |
For more Money magazine statistics click here