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WELCOME

Paul D. Petersen, Assessor. WELCOME. 2016 Property Valuation Open Forum Presented by: Tim Boncoskey, Chief Deputy Assessor Lesley Kratz, Senior Advisor Assessor Marc Kuffner, Assistant Superintendent MCESA. Paul D. Petersen, Assessor. Property Types. Paul D. Petersen, Assessor.

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WELCOME

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  1. Paul D. Petersen, Assessor WELCOME 2016 Property Valuation Open Forum Presented by: Tim Boncoskey, Chief Deputy Assessor Lesley Kratz, Senior Advisor Assessor Marc Kuffner, Assistant Superintendent MCESA

  2. Paul D. Petersen, Assessor Property Types

  3. Paul D. Petersen, Assessor 2015 Tax Roll Timeline

  4. Full Cash Analysis TY 14-15 (FY 15-16) Comparison Paul D. Petersen, Assessor

  5. PRELIMINARY TY2015 (FY15-16) Secondary Abstract Paul D. Petersen, Assessor Secondary NAV Change 14.70%

  6. PRELIMINARY TY2015 (FY15-16) Primary Abstract Paul D. Petersen, Assessor Number Must Be Used for ALL Secondary/Primary Taxes Primary NAV Change 3.19%

  7. Primary (LPV) Change By Municipality Paul D. Petersen, Assessor

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

  9. Primary (LPV) Change By Elementary School District Paul D. Petersen, Assessor

  10. Primary (LPV) Change By High School District Paul D. Petersen, Assessor

  11. Primary (LPV) Change By Elementary School District Metro Paul D. Petersen, Assessor

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

  13. Paul D. Petersen, Assessor 2016 Tax Roll Timeline

  14. Paul D. Petersen, Assessor TY15-16 ComparisonFull Cash Value Analysis

  15. PRELIMINARY 2016 Median by Property Type Paul D. Petersen, Assessor

  16. TY 2016 Residential FCV Percent Change By City Paul D. Petersen, Assessor

  17. TY 2016 Residential FCV Percent Change By City Paul D. Petersen, Assessor

  18. TY 2016 Residential FCV Percent Change By ZIP Code Paul D. Petersen, Assessor

  19. TY 2016 Residential FCV Percent Change By ZIP Code Paul D. Petersen, Assessor

  20. Paul D. Petersen, Assessor Foreclosures2007-2014 52,866 2009 2010 2011 42,460 46,165 54,485 52,866 42,460 2008 25,892 42,460 2012 25,892 2007 10,998 11,379 2013 11,379 2014 6,302

  21. TY 2016 Land FCV Percent Change By City Paul D. Petersen, Assessor

  22. TY 2016 Land FCV Percent Change By City Paul D. Petersen, Assessor

  23. TY 2016 Commercial FCV Percent Change By City Paul D. Petersen, Assessor

  24. TY 2016 Commercial FCV Percent Change By City Paul D. Petersen, Assessor

  25. Commercial Paul D. Petersen, Assessor 9% of the 2009 Sales are REO

  26. 2-12 Unit Apartments Paul D. Petersen, Assessor Apartments

  27. 13+ Unit Apartments Paul D. Petersen, Assessor

  28. Paul D. Petersen, Assessor PROPOSITION 117 & SINGLE YEAR TAX ROLL LEGISLATION

  29. Proposition 117 Paul D. Petersen, Assessor Constitution Article 18 • (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.

  30. Proposition 117 Paul D. Petersen, Assessor ARS § 42-11001 42-11001. Definitions In 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.

  31. Proposition 117 Paul D. Petersen, Assessor ARS § 42-15001 • 42-15001. Assessed valuation of class one property • The assessed valuation of class one property percentage of its full cash value or limited valuation, as applicable: • Tax Year 2006 – 25% • 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%

  32. Proposition 117 Paul D. Petersen, Assessor ARS § 42-15002 • 42-15001. Assessed valuation of class two property • The assessed valuation of class two property percentage of its full cash value or limited valuation, as applicable: • Tax Year 2015 – 16% • 2. Tax Year 2016 – 15%

  33. Proposition 117 Paul D. Petersen, Assessor ARS § 42-17052 42-17052. Values furnished by county assessor A. 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.

  34. Proposition 117 Paul D. Petersen, Assessor 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

  35. Single Year Paul D. Petersen, Assessor • High Appeals Caused Delays: • Appeals Down By 55 per cent • The Great Recession: • When Markets Plummet; Yet Values Lag Two (2) Years.

  36. Single Year Roll Paul D. Petersen, Assessor • More Accurate: • Values – Closer to Notice • Understandable: • Values prepared, noticed, and taxed within the same year • Responsive: • Values reflected in the market

  37. Single Year Roll ValuationYear Paul D. Petersen, Assessor • 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

  38. Single Year Roll Supplemental Notice Paul D. Petersen, Assessor • Due to the ability to pick up new property and tax them the next year, supplemental notices are no longer needed.

  39. Single Year Roll Board of Equalization Paul D. Petersen, Assessor • April 30: Assessor Ruling on Petition • Boards of Equalization: • June 20: County Board of Equalization • June 30: State Board of Equalization

  40. Single Year Roll Proposed Tax Roll Timeline Paul D. Petersen, Assessor

  41. Paul D. Petersen, Assessor TAX COURT LITIGATION

  42. Tax Court Litigation Summary Paul D. Petersen, Assessor • 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.

  43. Tax Court Litigation Summary Paul D. Petersen, Assessor • 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.

  44. Tax Court Litigation Total Cases Filed 2000-2014 Paul D. Petersen, Assessor

  45. Paul D. Petersen, Assessor GOVERNMENT PROPERTY LEASE EXCISE TAX (GPLET)

  46. GPLET’S Paul D. Petersen, Assessor ARS § 42-6202 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.

  47. GPLET’S Paul D. Petersen, Assessor ARS § 42-6206 42-6206. Leases and development agreements; notice of tax liability; approval requirements; default E. No later than June 30 of each year the governmentlessor shallprovide the county assessor with a complete list of development agreements

  48. GPLET’S Paul D. Petersen, Assessor 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”

  49. Paul D. Petersen, Assessor TAX RATES / LEVYS

  50. Tax Rates / Levys Paul D. Petersen, Assessor It’s Easy Levy (Taxable) Amount / Assessed Value = Tax Rate

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