AZ Real Estate Tax

Question 1

In AZ, the tax assessment rate on a single-family owner-occupied home is:

a. 9%
b. 10%
c. 12%
d. 14%

Answer 1

B. 10%

Question 2

The lien with the highest priority in AZ is the

a. property tax lien
b. special assessment
c. lien first recorded
d. federal income tax lien

Answer 2

A.

Question 3

The interest rate on delinquent prop taxes in AZ is:

a. 9%
b. 10%
c. 16%
d. 18%

Answer 3

c. 16%

Question 4

Taxes are levied:

a. biannually
b. semi-annually
c. annually
d. each September

Answer 4

C. annually

Question 5

Taxes are paid in arrears and become a lien in:

a. advance
b. arrears
c. October
d. March

Answer 5

October

Question 6

The delinquency dates on real property taxes are:

a. Nov 1 and May 1
b. Sept 1 and March 1
c. November and March 1
d. Sept 1 and May 1

Answer 6

A. nov 1 and may 1

Question 7

In AZ, which of the following prop classifications has the highest assessed value ratio?

a. owner occupied residential
b. fully occupied apartment building
c. vacant land
d. vacant shopping center

Answer 7

D. Shopping Center

Question 8

Must know!!
Property Classifications & Assessed Value Ratios

Class 1
18% Commercial Property
Class 2
15% Vacant Land
Class 3
10% Owner-occupied residential property
Class 4
10% Residential Income property

Question 9

How do you calculate property tax? What is the tax calculation formula

Answer 9

Step 1
Prop Value x Assessed Value Ration=Assessed Value

Step 2
Assessed Value x Tax Rate = Real Property Taxes

Question 10

Which of thee property classifications is used for owner-occupied homes

a. class 1
b. class 2
c. class 3
d. class 4

Answer 10

C

Question 11

Which property classification requires the owner to file a Rental Property Registration form w/ the county assessor

a. class 1
b. class 2
c. class 3
d. class 4

Answer 11

D.

Question 12

Real estate taxes are due

a. march 1 and october 1
b. may 1 and november 1
c. the first monday in january
d. january 1 and july 1

Answer 12

A.

Question 13

A liens is sold to recover delinquent taxes. The statutory redemption period after the tax foreclosure sale is

a. 3 mos
b. 6 mos
c. 3 years
d. 5 years

Answer 13

C.

Question 14

Vacant commercial land in AZ is assessed at what percent of the value

a. 10
b. 15
c. 18
d. 20

Answer 14

C.

Question 15

ASSESSED VALUE RATIO

What is Class 1? and AVR?

What is Class 2? and AVR?

What is Class 3? and AVR?

What is Class 4? and AVR? What is different about class 4?

Answer 15

_Assessed Value Ration_ is the ration/rate set by state law

• Class 1 - Commercial Property - 10%*
• Class 2 - Vacant Land - 15%*
• Class 3 - Owner occupied residential property - 10%*
• Class 4 - Residential income property - 10%*

NOTE: Class 4 property owners must file a RESIDENTIAL RENTAL PROPERTY REGISTRATION form w/ the COUNTY ASSESSOR

Question 16

TAX RATE:

Usually stated as $ per $100 of assessed value ($$ amt divided by $100) to get a decimal value)

OR

Mills = 1/1000 of $1 (DIVIDE MILLS number BY 1000)

EXAMPLE- How to determine property tax amount

What are the taxes on an owner occupied residence with a limited property value of $150,000 and a tax rate of $19 per $100 of assessed value?

LIMITED PROP VALUE $150,000 x ASSESSED VALUE RATIO 10%

= ASSESSED VALUE $15,000

ASSESSED VALUE x TAX RATE ($19/$100)

= TAXES

LPV x AVR = ASSESSED VALUE

ASSESSED VALUE x TAX RATE = REAL PROPERTY TAXES