NAVAJO COUNTY ASSESSORS OFFICE What does my Property

NAVAJO COUNTY ASSESSOR’S OFFICE

What does my Property Tax Pay For? Property tax revenue help fund: Local Government Schools Law Enforcement Library Special Improvements (mostly voter approved) Fire Districts Street Lights (Show Low) Sewer, Wastewater and Sanitary Districts, and road improvement districts

Three Factors in Property Tax Calculation Value/Assessment - Assessor Legal Class Ratio - Legislature Tax Rate/Levy Amt - Taxing Jurisdiction Navajo County - For Official Use Only

The process begins with the valuation of the bare land The land value is derived from market data--the selling price of properties in the area Land Characteristics Size View Amenities Location; Location Navajo County - For Official Use Only

ADDRESSING THE IMPROVEMENT VALUE AN IMPROVEMENT IS ANY ADDITION TO A VACANT PARCEL OF LAND

The improvement is measured, classified and graded based on its use, quality, design and workmanship Homes are classified from an R-1 to R-7 Navajo County - For Official Use Only

The improvement is measured, classified and graded based on its use, quality, design and workmanship Homes are classified from an R-1 to R-7 Navajo County - For Official Use Only

Sales are used as bench-marks for Assessor’s valuation: Market factors are applied to building cost for the various areas based on sales MARKET INFORMATION ASSESSOR’S VALUATION PROCESS

The Affidavitt of Property value is completed at the time of purchase This affidavitt is used by the assessor’s office to run sales studies It is important that this document is completed correctly. Navajo County - For Official Use Only

Property Classifications/Ratios 2018 1. Primary Resident 2. Rental 3. Non-Primary Resident 4. Commercial 5. Vacant /Misc 10% 10% 18% 15%

Properties are taxed on the assessed value which is a percentage of the full value The percentage used is based on the use of the property Navajo County - For Official Use Only

Jurisdictions Budget or Levy Amount: 10, 000 - Taxing Jurisdiction Total Assessed Value 81, 000 - Assessor Tax Rate: . 12345 - Calculation JURISDICTION’S BUDGET DIVIDED BY ASSESSOR’S VALUATION FOR JURISDICTION 10, 000/81, 000=. 12345 (12. 345 HUNDRED) Navajo County - For Official Use Only

Property Tax Explanation The best way to explain Navajo County’s Property Tax system is to use simple illustrations. Lets form a taxing jurisdiction that consist of Three homes, two commercial and one vacant lot All properties are valued the same $100, 000 Navajo County - For Official Use Only

Tax Rate 12. 345 $10, 000 Budget Total AV 81, 000 100, 000 LPV 100, 000 LPV 10, 000 AV 18, 000 AV 10, 000 AV 18, 000 $1, 235 Tax Bill Navajo County - For Official Use Only $1, 235 Tax Bill $2, 222 Tax Bill 100, 000 LPV 15, 000 AV $1, 851 Tax Bill

Tax Rate 18. 271 $14, 800 Budget Total AV 81, 000 +48% +48% 100, 000 LPV 100, 000 LPV 10, 000 AV 18, 000 AV 10, 000 AV 18, 000 $1, 827 Tax Bill Navajo County - For Official Use Only $1, 827 Tax Bill $3, 289 Tax Bill +48% 100, 000 LPV 15, 000 AV $2, 740 Tax Bill

$10, 000 Budget Tax Rate 6. 172 Total AV 162, 000 +0% +0% 200, 000 LPV 20, 000 AV 36, 000 AV $1, 235 Tax Bill Navajo County - For Official Use Only $1, 235 Tax Bill $2, 222 Tax Bill +0% 200, 000 LPV 36, 000 AV 30, 000 AV $2, 222 Tax Bill $1, 851 Tax Bill

Tax Rate 10. 526 $10, 000 Budget Total AV 95, 000 -15% taxes +27% taxes 100, 000 LPV 150, 000 LPV 10, 000 AV 18, 000 AV 15, 000 AV 10, 000 AV 27, 000 $1, 053 Tax Bill Navajo County - For Official Use Only $1, 579 Tax Bill $1, 053 Tax Bill $1, 894 Tax Bill $2, 842 Tax Bill -15% taxes 100, 000 LPV 15, 000 AV $1, 579 Tax Bill

Valuations are used to spread the tax responsibility over all taxable properties not generate tax dollars Navajo County - For Official Use Only

TAXES DO NOT INCREASE JUST BECAUSE THE VALUES INCREASE The Assessor’s Valuations is used to divide the jurisdictions budget to each taxpayer based on the property valuation.

Splitting the check Lobster $30 Steak $20 James Hamburger $10 TOTAL BILL $60 Jason Cindy Navajo County - For Official Use Only

SHELL GAME LEVY/TAX RATE Navajo County - For Official Use Only ASSESSED VALUE

WHICH IS THE LEVY TAX /AMOUNT Navajo County - For Official Use Only

PROP 117 STARTING IN 2015 THE ENTIRE TAX STATEMENT WILL BE BASED ON THE LIMITED FULL CASH VALUE AND UNLESS THE PROPERTY HAS HAD SOME TYPE OF CHANGE THE LIMITED VALUED CAN ONLY INCREASE 5% Example: the Full Cash Value of the property increases from $100, 000 to $125, 000 The Limited Value would increase to $105, 000 The tax rates would be applied to the $105, 000 instead of the $125, 000 If the property does experience the limited value would be percentage of Full Cash Verses homes in the Navajo County - For Official Use Only a change to the property adjusted to the same Limited Value of Similar County

Example of LPV Calculations 2020 Property Values FCV 300, 000 LPV 250, 000 Building permit Issued Garage Addition Total $20, 000 $40, 000 or 13% increase 2021 Property Values FCV LPV Navajo County - For Official Use Only 355, 000 Increase in Market (5%) and the Additions (18%) 262, 000 (5%)

Heber Overgaard Budget Example 2019 LPV RATE LEVY 2020 85, 522, 414 1. 9083 1, 632, 024 LPV RATE LEVY 87, 655, 070 1. 9083 1, 672, 913 Levy Amount increased with no Change to the Tax Rate The Tax rate is not the Levy the Amount of Tax Dollars a jurisdiction budgets is the LEVY AMOUNT The Fire District has the authority to set the LEVY AMOUNT the tax rate is just a calculated number based on that amount against the Limited Property Value Therefore just because a jurisdiction does not change their tax rate they may still increase their Levy Amount

PROPERTY TAX EXEMPTIONS AND PROPERTY FREEZE WIDOWS, WIDOWERS, DISABILITY, CHURCHES, SOME NON-PROFIT ORGANIZATIONS AND SENIOR PROPERTY FREEZE INFORMATION CAN BE OBTAINED ON OUR WEBSITE OR BY CONTACTING OUR OFFICE

APPEALS A property owner has an opportunity to appeal the valuation placed on a Property Every year a Notice of Valuation is mailed to every property owner at the last known address stating the valuation to be used as well as the previous years valuation

THANK YOU FOR FURTHER INFORMATION OR ASSISTANCE PLEASE CALL THE ASSESSOR’S OFFICE 928 -524 -4086 928 -532 -6001 928 -289 -6801 928 -535 -7134 HOLBROOK SHOW LOW WINSLOW HEBER OR VISIT OUR WEB SITE NAVAJOCOUNTYAZ. GOV/ASSESSOR Navajo County - For Official Use Only