It is that time of year again.  The county assessor will soon be sending out those cards with the “Notice of Full Cash Value”.    Make sure to pay particular attention to this year’s “Notice of Full Cash Value”.  Unless the Arizona Association of Realtors gets the bill changed, there will be an attachment as a result of a "jobs bill (HB 2001)” passed last year, aimed to create more jobs in Arizona, but it may cost uninformed homeowners up to $600.

This new law approved large tax cuts for businesses to entice businesses to Arizona. However, in order to make sure the reduction in what businesses pay is not transferred to homeowners, the law also includes a section that requires homeowners to sign an affidavit to ensure they are living in their home.

Owner occupied homes in Arizona are identified as Class 3 and investment properties are Class 4.  The affidavit must be returned signed by you, under penalty of perjury, stating your home is owner occupied and is your primary residence. 

The differences between Class 3 and Class 4 properties are that Class 3 properties receive a state aid rebate in property taxes.  This payment is commonly referred to as the “homeowner rebate”. The rebate is reflected on the tax bill on the line titled STATE AID TO EDUCATION.  There are penalties and fines if you falsely classify a non-owner occupied home as your primary residence.  Part time residents should seek tax advice.

Your property will be reclassified as Class 4 and you will lose your homeowner rebate if you do not verify your property is an owner occupied primary residence property within 60 days of receipt of your Notice of Full Cash Value. If your property is reclassified as Class 4 you will lose your homeowner rebate and owe more in property tax.   

Please share this information with other home owners, if possible.  If you would like access to more information, you can contact Rock Meeker, operations manager at Estrella Homes and Land, Sold by RE/MAX Preferred Choice at 623-850-0005 or visit the link provided by the Arizona Association of Realtors- http://www.aaronline.com/AZR/2011/April/Passage-of-the-Jobs-Bill-Residential-Property-Tax-Impacts.aspx.

Please consult with your tax adviser regarding the above information.  This information is not inclusive of the whole bill and how it pertains to your unique tax situation.