Increases in primary values are limited by the constitution, as is the total amount of primary property taxes that counties, cities and community college districts can levy. Secondary values rise if the full cash value of the property rises. The Arizona Department of Revenue and county assessors conduct sales ratio studies to determine the equality of assessments within a neighborhood or larger area. Pursuant to state law, each class of property is assigned an assessment ratio ranging from 1 percent to 26 percent. The assessment ratios are applied to both the primary and secondary values of a property and determine a property's net assessed valuation.
All classifications use the same tax rates.
Personal Property Tax Arizona imposes property taxes on business equipment. The equipment is taxed on the basis of its value at the time of purchase and is depreciated every year thereafter. Secured and unsecured personal property construction in progress is exempt from taxation until the construction work has progressed to a sufficient degree for the personal property to be used. For specific answers to questions about any Arizona tax issues, please contact the Arizona Department of Revenue. For a general indication of tax rates, see the Community Profile for the community in which you are interested.