Appraisal: The act or process of determining a full cash value.
Appreciation: Increase in value of property, in terms of money, from causes other than additions and betterments.
Assess: To place a value on property for tax purposes.
Assessed Value: The value derived by multiplying the appropriate assessment ratio by the full cash or limited value.
Assessment Ratio: The ratio used to calculate Assessed Value. These ratios are governed by statute and determined according to the current use of the property.
CAMA: See computer-assisted mass appraisal
Characteristics: Data items that describe a property and/or improvement such as land size, property type, square footage, age, golf course, etc
Comparable(s): Properties used to illustrate, support, and or negate the Full Cash Value as arrived at by the Assessor’s Office.
Computer-Assisted Mass Appraisal (CAMA): A system of appraising property using computer-supported statistical analysis such as multiple regression analysis and adaptive estimation procedure to assist the appraiser in estimating value.
Construction/Building Class: A construction rank used to group properties in a specific local. The class is determined based on the construction materials used, the architectural design and the workmanship of the home as it compares with other properties in the same area. These ranks range from 0 to 7 with 7 being the best. The rank for a typical home built today would be 3.
Cost Approach: Method by which the Full Cash Value is determined. This is done by adding the land value to the current cost to replace existing improvements, less any depreciation.
Current Use: The use to which property is put at the time of valuation by the Assessor.
Economic district: A large geographical area identified by the uniqueness of its economics.
Full Cash Value: The value determined annually using standard appraisal methods and techniques as determined by market values or by applying a method of valuation as prescribed by statute. Per statute, “Full cash value shall not be greater than market value regardless of the method prescribed to determine value for property tax purposes”. Full Cash Value is the basis for assessing, fixing, determining, and levying secondary property taxes.
Income Approach: Method by which the Full Cash Value is determined. This method determines value based on the parcel’s and/or parcels’ anticipated future benefits.
Legal Description: A description of a parcel complete enough to locate the exact boundaries of said parcel.
Legislative Class: A statewide classification system that places similar properties into legal classes based on their current use.
Limited Value: The value determined pursuant to ARS Title 42 Section 13301. Limited property value is the basis for assessing, fixing, determining, and levying primary property taxes. The limited value cannot exceed full cash value.
Market Approach: Appraisal Method by which the Full Cash Value is determined using current sales values and then adjusting them for differences in property characteristics to arrive at a full cash value for the subject property.
Mass Appraisal: An estimate of value for a large number of properties as of a given date.
Multiple regression: Explores and quantifies the relationship between two or more components of known and available data (sales prices and property characteristics) to predict a value.
Neighborhood: A smaller geographic sub-area that may be homogeneous or share important locational or market characteristics.
Primary Property Taxes: Taxes derived for the maintenance and operation of school districts, cities, community college districts, counties, and the state. Calculated using the Assessed Limited Property Value.
Property Tax: An ad valorem tax issued by the government based on the assessed value of property.
Sales ratio studies: Studies used by Assessors as well as supervisory agencies such as the Department of Revenue to(1): determine and/or monitor acceptable appraisal performance, (2) determine reappraisal priorities, (3) develop market (time) adjustments and (4) future planning.
Secondary Property Taxes: Taxes derived for bonds, budget overrides and special districts such as fire, flood control and other limited purpose districts. Calculated using the Assessed Full Cash Value.
Site: A parcel of land improved for a specific use.
Tax Rate: The tax levy (budget set by each taxing authority) divided by the total equalized assessed valuation.
Tax Year: The calendar year in which the taxes are levied.
Time-adjusted sales price: A common appraisal practice used to adjust the original sale price for the effects or changes in the market between the date of sale and the date of appraisal.
Unit of Comparison: A physical or economic measure that can be divided into the property’s price to provide a more standardized comparison of properties, i.e.. Price per square foot, price per room/unit.
Valuation: The full cash value or limited property value that is determined for real or personal property.
Valuation Year: For real property, the calendar year preceding the year in which the taxes are levied. For personal property, the calendar year in which the taxes a levied.