If you own a home in Arizona, DO read your tax valuation statement this month! Primary homeowners in Arizona must now sign and return an affidavit which will come with your Notice of Full Cash Value. If you fail to do so within 60 days, your primary home will be taxed as a rental property at a higher rate!
Here is an excerpt from Jon Kichen’s Arizona Real Estate Blog, explaining the Bill which enacted the change,
Here’s how it works…Most Residents of Arizona did not realize that their property tax on primary residence, 2nd home and/or vacation home was lowered by a credit from the state general fund to the county in which the property sits. That credit was automatic for all Class 3 properties, which included primary residence, 2nd home and vacation home properties.
This bill changes all that. First, only primary residence homes will be Class 3 properties. 2nd home and vacation home will become Class 4, taxed at a higher rate as rentals. And, here’s the kicker. Homeowners will have to “opt-in” for the credit by completing an Affidavit every other even-numbered year, starting in 2012, attesting that they or a family member occupy the home. That affidavit will be mailed with the Notice of Full Cash Value that is typically sent in February of every year. Homeowners will have 60 days to complete and return the affidavit in order to remain as a Class 3 property. If they fail to submit the affidavit, on the 61st day, that property will become a Class 4 property and their tax bill will increase by as much as $600, according to budget estimates.
Here is the full story as reported by Jon Kichen on the Arizona Real Estate Blog
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