Bond issues, budget overrides and special district funding are based on secondary values. The state itself levies no property tax. 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.