2019 Personal Property Manual - azdor.gov

1 Arizona Department of Revenue 2019 Personal Property Manual This revision of the Arizona Department of Revenue Personal Property Manual is effective as of January 1, 2019. This Manual supersedes all earlier manuals. Arizona Department of Revenue Forward Local Jurisdictions District Personal Property Manual Revised: November 2018. Foreword Arizona laws provide the authority for the identification, classification, valuation and assessment of Personal Property , creating an integrated Property tax assessment system that includes both real and Personal Property . The 2019 Personal Property Manual provides information pertaining to the identification, classification, valuation and assessment of locally assessed Personal Property in Arizona. The information in it is provided to assist personnel prepare annual valuations and assessments of taxable Personal Property . This Manual is not intended for use in the valuation of Centrally Valued Personal Property .

2 In 2018, the manuals team deployed a major update project comprising all manuals and guidelines produced by the Local Jurisdictions District. The following definitions are being incorporated as intrinsic project elements: Review: Manual conforms to standard style and formatting. Legislative and other citations have been verified. No changes to content, methodology, policy or practice. Revision: Includes all review processes; Manual is a newly edited version. Manuals are also considered revised when conforming to a non-substantive legislative change. Information that does not alter valuation methodology may have been added or deleted. Rewrite: Includes all review processes; major substantive changes have been made to any combination of content, valuation methodology, policy or practice. This Manual is a revision of the Personal Property Manual issued by the Arizona Department of Revenue on January 1, 2018 and supersedes all previous Personal Property Manuals issued by the Department.

3 It remains effective until revised or replaced. Other information may subsequently be issued as a part of this Manual or as a separate guideline document, if considered necessary. Due to varying deadlines and intercounty policies, we recommend Arizona Department of Revenue Forward Local Jurisdictions District Personal Property Manual Revised: November 2018. contacting your jurisdiction's county assessor for detailed information regarding the assessment process. All inquiries, comments and suggestions concerning any specific material contained in this Manual may be submitted to the following addresses: Arizona Department of Revenue Local Jurisdictions District Personal Property Unit 1600 West Monroe St. Phoenix, AZ 85007-2650. Phone: 602-716-6843. Email: The Personal Property Manual can be viewed on the Arizona Department of Revenue's web site at: Arizona Department of Revenue Quick Reference Local Jurisdictions District Personal Property Manual Revised: November, 2018.

4 Quick Reference 2019 Business Personal Property Exemption $176,003. 2019 Assessment Ratio for Property Class 1. 18%. 2019 Assessment Ratio for Property Class 2. 15%. 2019 Assessment Ratio for Property Class 6. 5%. Legislative Changes to Arizona Revised Statutes 11-483, 11-484, 12-290, 16-153 & 28- HB 2327 amends ARS . 454. HB 2596 amends ARS 42-18151 & 42-18351. HB 2385 amends ARS 42-16213. various sections 42 & 43 regarding SB 1294 amends ARS . taxation SB 1293 amends ARS various sections 42 & 43. Arizona Department of Revenue Quick Reference Local Jurisdictions District Personal Property Manual Revised: November, 2018. Arizona Department of Revenue Contents Local Jurisdictions District Personal Property Manual Revised: November, 2018. Contents Arizona Department of Revenue Contents Local Jurisdictions District Personal Property Manual Revised: November 2018. CONTENTS. ++++QUICK REFERENCE .. V. CONTENTS .. VII. CHAPTER 1 .. 1.

5 Personal Property OVERVIEW .. 1. Introduction .. 3. Classes of Property and Their Assessment Ratios .. 3. Distinguishing Between Real and Personal Property .. 6. Examples of Real and Personal Property .. 8. CHAPTER 2 .. 15. BUSINESS Personal Property .. 15. Reporting Personal Property .. 17. Reporting Summary .. 19. Valuation of Personal Property .. 20. Determining Assessed Value .. 33. Special 34. Processing Returns by County Assessor .. 54. Proration of Personal Property Taxes .. 55. 55. Additional Charges .. 57. CHAPTER 3 .. 58. MANUFACTURED HOUSING AND MOBILE HOMES .. 58. Introduction .. 60. Types of Manufactured Housing and Mobile Homes .. 60. Mobile Home Location and Identification .. 61. 64. Service Member's Civil Relief Act of 2003 .. 65. Arizona Department of Revenue Contents Local Jurisdictions District Personal Property Manual Revised: November 2018. Valuation of Mobile Homes .. 66. Square Foot Method .. 67. Factory List Price Method.

6 68. Additional Factors Affecting Valuation .. 71. Assessment of Mobile Homes .. 73. The Mobile Home Relocation Fund .. 75. Moving Mobile Homes .. 76. CHAPTER 4 .. 79. APPEALS PROCESS .. 79. Appeals Process for the Personal Property Tax Roll .. 81. Administrative Appeals .. 82. Judicial Appeals for Personal Property Tax Roll .. 85. CHAPTER 5 .. 87. CORRECTION OF ERRORS .. 87. Correcting Property Tax Errors .. 89. Definition of Error .. 89. Time 91. Notice of Proposed Correction / Notice of Error .. 92. Self-Reporting of Personal Property Tax Error .. 93. Taxpayer Notice of Claim .. 94. Evidence That May Be Considered at Hearings .. 95. CHAPTER 6 .. 97. Personal Property CALENDAR, VALUATION TABLE INDEX, AND VALUATION TABLES .. 97. VALUATION TABLE INDEX .. 104. 2019 VALUATION TABLES .. 121. 2019 VALUATION TABLE 1 .. 123. 2019 VALUATION TABLE 2 .. 129. 2019 VALUATION TABLE 5 .. 130. 2019 Valuation Table 6 .. 131. 2019 Valuation Table 8.

7 133. Arizona Department of Revenue Contents Local Jurisdictions District Personal Property Manual Revised: November 2018. 2019 Valuation Table 14 .. 134. 2019 Valuation Table 15 .. 139. APPENDIX A: .. 145. GLOSSARY .. 145. APPENDIX B:.. 151. AFFIXTURE STATUTES FOR MOBILE HOMES WITHIN RENTAL COMMUNITIES .. 151. APPENDIX C: .. 155. SAMPLE FORMS .. 155. APPENDIX D: .. 161. INDEX .. 161. Arizona Department of Revenue Contents Local Jurisdictions District Personal Property Manual Revised: November 2018. Arizona Department of Revenue Chapter 1. Local Jurisdictions District Personal Property Overview Personal Property Manual Revised: November 2018. Chapter 1. Personal Property Overview 1|Page Arizona Department of Revenue Chapter 1. Local Jurisdictions District Personal Property Overview Personal Property Manual Revised: November 2018. 2|Page Arizona Department of Revenue Chapter 1. Local Jurisdictions District Personal Property Overview Personal Property Manual Revised: November 2018.

8 Introduction Within the broad category of " Property ," two types of Property are commonly recognized. Real Property , also called real estate, refers to the rights to land and any improvements to or on the land. Personal Property is defined as being all types of tangible and intangible Property that is not included in the term real estate, pursuant to ARS 42-11001(10). This Manual emphasizes the narrower category of " Personal Property .". It is important to remember that for locally assessed Personal Property , valuation year and tax year are the same calendar year. This Manual uses the following conventions: the term mobile home is used to describe any manufactured housing, the Arizona Department of Revenue is referred to as the department . or DOR, and ARS denotes Arizona Revised Statute. Personal Property includes Property used for commercial, industrial, residential, and agricultural purposes. It also includes improvements on possessory rights (IPRs) and certain leasehold improvements.

9 Personal Property is subject to Property tax, except for inventory of a manufacturer, wholesaler or retailer, as well as livestock, Personal household goods, and certain other specifically exempted items. ARS 42-11102. A vehicle license tax is assessed in lieu of a Property y tax on motor vehicles. Most manufactured housing and mobile home units are assessed as Personal Property . Chapter 3, "Manufactured Housing," contains a detailed discussion of mobile home valuation and assessment. Classes of Property and Their Assessment Ratios The Arizona Revised Statutes establish several classifications of taxable Property according to use. Each Property class has a statutory assessment ratio. The classes of Property and their corresponding assessment ratios are currently defined in ARS 42-12001 through 42-12009. and 42-15001 through 42-15009, respectively. 3|Page Arizona Department of Revenue Chapter 1. Local Jurisdictions District Personal Property Overview Personal Property Manual Revised: November 2018.

10 Most locally assessed business and agricultural Personal Property is identified in Property class one, subclasses (8), (9), (10), and (13), in Property class two, or in Property class six, with the exception of subclass (1). Mobile homes are generally identified in Property classes three and four. The information in this Manual is limited to these Property classes and subclasses The classification of an item of Personal Property is based in most cases on its current use by the owner. If identical items of Personal Property are put to different uses by different owners, each item must be classified by its own current use. For example, a tractor used by a farmer is classified under Property class two, subclass 2(P) (a) or (b) for its agricultural use. However, an identical tractor used by a contractor would be classified as Property class one, subclass (13) for its commercial use. The chart on the following page provides a reference to the most commonly used Property classes and assessment ratios for Personal Property .