FREQUENTLY ASKED QUESTIONS (FAQ’S)
REGARDING AGRICULTURAL/BUSINESS PERSONAL PROPERTY

What is Personal Property?
Simply answered, personal property is anything that is not real property. It includes, but is not limited to: office furniture, all types of equipment, non-licensed vehicles such as tractors, supplies, spare parts, leasehold improvements, and refrigerators, stoves, dishwashers, etc. An Agricultural or Business Personal Property Statement is mailed annually to the taxpayers for completion.

How is Personal Property valued?
The Arizona Department of Revenue establishes the guidelines that the counties use to value Personal Property. It is valued based on year of acquisition by the taxpayer, type of industry, and original cost of the assets. The Personal Property Manual is available on-line here

What is the difference between secured personal property and unsecured personal property?
In order to secure the value of personal property to the real property the ownership must be the same. If the property is secured, the taxpayer receives one tax bill which includes the real and personal property. Property that is unsecured receives a separate tax bill for their personal property.

How is my Full Cash Value determined?
Full Cash Value (FCV) is the value that the Assessor places on your personal property after applying the valuation guidelines of the Arizona Department of Revenue. Limited Value and Full Cash Value are the same on Personal Property.

What is Legal Class?
The Legal Class is determined by the owner’s use of the personal property. State statutes determine the percentages of the value that will be taxed of each class (Assessment Ratio).
The following are the most common:

What is Assessed Value and how is it determined?
Assessed value is the value used to compute your tax amount. The assessed value is determined by multiplying the full cash value by the appropriate Assessment Ratio.

What is the lien date and valuation date for Personal Property?
The lien date and valuation date is January 1st of each year. The Assessor does not prorate personal property. If you sell your property after December 31st, and do not wish to pay the full amount of the tax, the personal property taxes that are generated based on the full cash value of your personal property should be pro-rated between the seller and buyer.

On what date are the Personal Property Statements mailed and when are they due?
The Statements are mailed prior to January 31st of each year. The completed and signed Statements should be returned to the Assessor by April 1st. If you cannot complete your form by April 1st, you may request an extension from the Assessor in writing no later than April 1st. The Assessor may grant a short extension.

Why do I have to return the original Personal Property Statement?
Our Statements are bar-coded with your information. This enables our office to scan information into our file. We do not accept faxed Statements.

What if the name on the Statement is incorrect?
Make the correction on the Personal Property Statement in Section 1. The Assessor mails the Statement to the name that is on file. If the name is misspelled, it does not render the Statement or subsequent Notice of Value invalid.

What is a business exemption and who may be eligible?
Commercial business personal property & Qualified Agriculture Equipment is eligible for exemption per ARS 42-11127. A business owner can claim the exemption one time annually in the State of Arizona. Residential rental property and non-profit/fraternal organizations are not eligible for the business property exemption. The full cash value exemption amount for 2008 is $63,242.

I have multiple business locations. Do I get the business exemption on each location?
In order for to process your exemption, you will need to provide us with your federal employer identification number. If your businesses share the same number, the exemption will be allocated between your locations. If you have any questions regarding the application of the exemption, please call our office at 520-243-8700 and ask to speak to your appraiser.

Do I need to report assets that I expense?
All assets need to be reported, whether they are expensed or capitalized. An expensed asset is an asset for which the entire cost is deducted from income in the year of purchase. A capitalized asset is an asset listed on the taxpayer’s books which is depreciated over two years or more years.

I lease some equipment. Do I need to report it on my Business Personal Property Statement?
Leased or rented property needs to be reported under Section 5 of the Personal Property Statement. The owner, not the lessee is assessed for the property. Liability for the payment of the tax may be delineated in your lease agreement; however, the Assessor is not bound by the agreement.

I just purchased the equipment I was leasing. How do I report this to the Assessor?
You need to report the original cost and year of acquisition of the equipment. Do not report the amount you paid at the close of the lease.

I have equipment located at my place of business that I do not own or lease. Do I need to provide that information to the Assessor?
Please provide the Assessor with the owner’s name, address, and brief description of the property, i.e. vending machine, ATM, recycle bins, etc. This equipment is assessable to the owner of the equipment.

My business is organized as a not-for-profit. Why do I need to report my assets?
All property is taxable unless specifically exempted by law. Not-for-profit entities need to seek exemption through the Exemption Section of the Assessor’s Office to determine if they are eligible. Statutes regarding exemptions may be found at ARS 42-11101 thru 11155. To reach the Exemption Section contact (520) 243-6255 or click here for more information on exemptions..

What is an Improvement on Possessory Rights (IPR) and how is it valued?
An IPR is a real property improvement owned by one party, but built on land owned by another. Examples are cabins on government owned land, or buildings built on land leased from the City of Tucson. Most IPR’s are valued the same way as real property, but placed on the personal property tax roll for the billing of taxes.

How do I notify the Assessor’s Office when I sell an IPR?
You should record the instrument of sale and provide the Assessor with a copy.

When are the Personal Property Valuation Notices mailed?
Starting in 2008 the Notice of Value will be mailed at the end of July. This will allow changes made as the result of an appeal to be updated prior to the mailing of the unsecured tax bills in September. Personal Property Appeal forms (DOR82530) are located here.

Where do I pay the Personal Property tax?
Taxes are payable to the Pima County Treasurer at 115 N. Church Avenue, Tucson, AZ 85701. Please write the eleven digit “Reference Number” on your check. You may contact them by phone at (520) 740-8341.

I still have questions regarding Personal Property. Who should I contact?
Our frequently asked questions page is a work in progress. For additional information you may either call (520) 243-8700 or email Linda Foley..