Arizona’s property taxes have managed to give home owners some anxiety, and a lot of that is based on a lack of clear understanding of what the laws actually are. It doesn’t help that rumors and poorly explained impromptu ‘lessons’ can add to the confusions because the property taxes vary widely across the cities. Movoto is here to give you a quick run down of what Scottsdale property taxes will look like should you wind up buying a home here, and how it compares to other major cities around the country.
What Definitions I Should Know?
The terms can be frustrating because people who are familiar with real estate often jump into conversations as if you’re just as familiar. Do not be fooled: taxes, fees and values can confuse practically everyone — because they’re often based on subjective matters. You may hear either LPV (Limited Property Value) or FCV (Full Cash Value) which refers to the difference between what the assessed value is compared to the actual market value. Sometimes the difference between the two numbers can be huge with the taxes based on the LPV amount. While the LPV may never be higher than the FCV, you can still contest the figure if you feel that it’s not representative of the true value. An assessor bases the number on components like previous sale prices, where your home is and the square footage of the property. Also, assessors do a lot of rounding off (e.g., an assessed value of $174,550 may become $174,000 for simplicity sake.) They are supposed to round for your benefit so you save a little extra cash.
How Much Will I Actually Pay?
You’re essentially paying based on the assessment ratio, which in Arizona is 10 percent. So if your home is assessed at the median home price of Scottsdale, or $650,000, you’ll pay based on an assessment ratio of $65,000. The county of Maricopa determines your neighborhood (and even sometimes street) rate based on too many factors to give you a specific number, though. Between water and special districts, schools, municipal and local taxes, it really does vary for each homeowner. You can check on property addresses through this site set up by the Arizona government, though, you need to keep in mind that they don’t give you the rate (likely due to its complicated fluctuations) so you also won’t be able to tell the exact assessed value either, only the current taxes previously paid by the owner.
This is where things get a little tricky. Again, depending on where you are you’re likely pay about 65 to 75 percent of your total property tax to primary taxes which takes care of operations and maintenance in your area, and then the rest to additional secondary measures and to incidental fees like schools and flood tax. If you’re looking for a shortcut, then you can assume your average rate is about 1.3 percent of your homes assessed market value, however the two values may vary quite a bit. For a home currently being sold at the median home price, you might expect to see taxes below $2,000 for those who own the home right now, obviously far less than the full price value of $8,450. This would change with a new home buyer of course, but it’s unclear just how much it will change based on the year purchased and assessment changes. The total Scottsdale property tax is split in half in Arizona, so you’ll get a bill from the Maricopa County Treasurer normally in October and March.
How Does This Stack Up?
When all was said and done, the tax foundation put Arizona as number 36 in the nation in terms of having the highest property tax rates, which means there are few states out there that pay less than you will. New Jersey is number one with Illinois as the second highest. This makes sense considering some Chicago suburbs pay close to 3 percent in property taxes. In Los Angeles and Orange County, you’ll pay around 1 percent, though California still came in 34 based on total averages. In Cleveland you’ll pay around 2 percent of the value, and in Miami it’s about the same as Scottsdale at 1.3 percent. It really is difficult to pinpoint what your bills will be, but because of the way it’s calculated in Scottsdale, your property tax is likely to be affordable, despite the heftier home prices in this area compared to other Arizona cities.
How Should I Make My Decision?
Scottsdale is extremely popular right now, with double or triple the home prices of Phoenix, Tucson, Chandler, and Mesa. Your primary goal to decide on where to buy a home here should be to find an area where the property taxes are going to all of the right measures. Most people don’t know very much about the special districts in their neighborhood, so you may want to ask your realtor exactly what you’ll be paying for. Many of the residents don’t even vote on what the money will be used for because they’re entirely unaware they even exist. You can rest assured, though, that overall you won’t be paying an exorbitant amount should you choose to move to the Scottsdale area.
2 Point Highlight
When all was said and done the tax foundation put Arizona as number 36 in the nation in terms of having the highest property tax rates, which means there are few states out there that pay less than you will.
Your primary goal to decide on where to buy a home here should be to find an area where the property taxes are going to all of the right measures.
