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The Honorable Mr. Douglas Wolf – Assessor Laura Andonie – Chief Deputy Assessor

Discover the impact of Pinal County's Business Personal Property Audit program on tax base increment, return on investment, and cash value discovery for Round 1 and Round 2. Understand the significance, benefits, and outcomes of auditing business personal property, ROI calculation, and lessons learned.

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The Honorable Mr. Douglas Wolf – Assessor Laura Andonie – Chief Deputy Assessor

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  1. The Honorable Mr. Douglas Wolf – Assessor Laura Andonie – Chief Deputy Assessor Malina Lopez – Personal Property Manager

  2. HOT TOPICS IN PROPERTY TAX: Auditing Business Personal Property

  3. Auditing Business Personal Property • Why Should we have an Audit Program • Arizona Revised Statues ~42-15053 F(2) • Internal vs. External • Pro’s and Con’s • Importance of Board of Supervisors Understanding • Year (Round) 1 vs. Year (Round) 2 • Lessons Learned • Audit Results in Tax Dollar • How can I start?

  4. Pinal County’s BPP Audit Full Cash Value Discovery for Round 1 (85 accounts out of 140) $12,966,074 $11,849,827 $7,983,855 2017 Total FCV Discovered 2015 Total FCV Discovered 2016 Total FCV Discovered

  5. BRING IT HOME, Malina! SHOW ME THE MONEY! 2017 = $7,983,855 (FCV) x 18% (Assessment Ratio) = $1,437,094 (Assessed Value) x 15.54% (Average Tax Rate) = $223,324 2016 = $11,849,827 (FCV) x 18% (Assessment Ratio) = $2,132,969 (Assessed Value) x 15.729% (Average Tax Rate) = $335,495 2015 = $12,966,074 (FCV) x 18.5% (Assessment Ratio) = $2,398,724 (Assessed Value) x 15.825% (Average Tax Rate) = $379,600 $938,419 Increase in Tax Base

  6. Return on Investment Round 1 652% ROI $938,419 $143, 900 2017 (Yr1) Initial Investment Increase in Tax Base

  7. Pinal County’s BPP Audit Full Cash Value Discovery for Round 2 (93 accounts out of 140) $22,147,792 $19,585,900 Increase of 58.5% $13,300,018 Increase of 60% Increase of 60% R2 2017 Total FCV Discovered 2016 Total FCV Discovered 2015 Total FCV Discovered

  8. BRING IT HOME, Malina! SHOW ME THE MONEY! 2017 = $13,300,018 (FCV) x 18% (Assessment Ratio) = $2,394,003 (Assessed Value) x 15.54% (Average Tax Rate) = $372,028 2016 = $19,585,900 (FCV) x 18% (Assessment Ratio) = $3,525,462 (Assessed Value) x 15.729% (Average Tax Rate) = $554,520 2015 = $22,147,792 (FCV) x 18.5% (Assessment Ratio) = $4,097,342 (Assessed Value) x 15.825% (Average Tax Rate) = $648,404 $1,574,952 Increase in Tax Base

  9. Return on Investment Round 2 1,094% ROI $1,574,952 $143, 900 2018 (Yr2) Investment Increase in Tax Base

  10. Round 1 & 2 Combined FCV Discovered(178 accounts out of 280) $35,113,866 $35,193,398 $3,757,671 Settlement $31,435,727 Increase of 58.5% Increase of 60% R2 R2 $21,283,873 Increase of 60% R2 R1 R1 R1 2017 Total FCV Discovered 2016 Total FCV Discovered 2015 Total FCV Discovered

  11. BRING IT HOME, Malina! SHOW ME THE MONEY! 2017 = $21,283,873 (FCV) x 18% (Assessment Ratio) = $3,831,097 (Assessed Value) $3,831,097 x 15.54% (Average Tax Rate) = $595,353 2016 = $35,193,398 (FCV) x 18% (Assessment Ratio) = $6,334,812 (Assessed Value) $6,334,812 x 15.729% (Average Tax Rate) = $996,403 2015 = $35,113,866 (FCV) x 18.5% (Assessment Ratio) = $6,496,065 (Assessed Value) $6,496,065 x 15.825% (Average Tax Rate) = $1,028,000 $2,619,756 Increase in Tax Base

  12. Total Return on Investment 910% ROI $2,619,756 $287, 800 2 Year Investment Increase in Tax Base • Arizona Revised Statues • ~42-15053 F(2)

  13. Auditing Business Personal Property • Why Should we have an Audit Program • Arizona Revised Statues ~42-15053 F(2) • Internal vs. External • Pro’s and Con’s • Importance of Board of Supervisors Understanding • Year (Round) 1 vs. Year (Round) 2 • Lessons Learned • Audit Results in Tax Dollar • How can I start?

  14. Questions????

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