GLOSSARY OF TERMS AND DEFINITIONS
Assessed Valuation
The value derived by applying the applicable percentage in ARS SEC. 42-227
to the Full Cash Value or Limited Value of the property. For example: The
applicable percentage for Residential Class 5 and Class 6 is 10%. For Class 5
and Class 6 properties the Assessed Valuation is 10% of the Full Cash Value or
Limited Value.
Full Cash Value
Full Cash Value is almost synonymous with Market Value except for
considerations unique to mass appraisal, distinctions between current use and
highest and best use, as well as consideration for cash equivalency and
personal property included in sale of real estate. As a result Full Cash Value
tends to be slightly lower than Market Value. In addition, the Full Cash Value
determination for certain types of property, such as; Shopping Centers, Golf
Courses and Agricultural property is fixed by specific
statute.
Full Cash
Value is used for the levy of Secondary Property Taxes.
Limited Property Value
Limited Property Value is a value that was originally set on the property
in 1980 and then increased each subsequent year by a specific mathematical
formula. Limited Property Value can never exceed the Full Cash Value.
Limited
Property Value is used for the levy of Primary Property Taxes.
Secondary Property Taxes
Secondary Property Taxes are taxes levied against the Full Cash Value
specifically to pay the principal of, the interest and redemption charges on,
any bonded indebtedness or other lawful long-term obligation issued or incurred
for a specific capital purpose by any municipality, county or taxing district.
(Bonded Indebtedness normally for Capital improvements or expenditures approved
by voters). Secondary Property Taxes are also used to fund special districts
(such as Fire Districts) and budget overrides.
Primary Property Taxes
Primary Property Taxes are taxes levied against the Limited Property Value
mainly for the maintenance and operation budgets of the county, city or other
taxing districts. These consist mostly of salaries and other non-capital
expenses authorized by governing boards.
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