TUCSON, Ariz. (KOLD News 13) - The residential notice of value for 2022 has been sent to 425,000 home and property owners in Pima County this week.
Right under the notice is a box which says “this is not a tax bill.”
But even though it’s not a bill, it’s an important document for anyone interested in knowing how much taxes they’ll be paying on their homes next year.
“Do not discard this notice,” said Pima County Assessor Suzanne Droubie. “Even when you see it’s not a bill, please at least take a glance at it, take a look at it before you throw it in the garbage.”
What the document will show is the “total full cash value” and the “limited value” of your home.
The full cash value is generally what the home would sell for on the open market. This can be appealed.
The limited value is set by statute, and cannot increase by more than 5% annually. It cannot be appealed, but must be less than the full cash value.
The document is for 2023 taxes, two years out. That’s to give homeowners who want to appeal the appraised value enough time to get through the process.
“We want to make sure everybody has a chance to appeal that value, understand why the value is set as it is and all of that takes time,” Droubie said.
The average increase in the value this year is about 5%. Some will be more but many likely won’t be less, given the increase in demand for housing.
“It’s definitely a sells market,” said Jim Daniel, a housing market analyst in Tucson and Phoenix. “Probably one of the best sellers markets we will ever see.”
Daniel points out the median price of a home in Tucson in 2012 was $213,570. By 2020, it had risen by 49% to $319,017.
“If you put a house on the market for $300,000, you’re going to have multiple offers on that home,” he said. “And it’s not going to have a problem selling.”
It was a surprise that building permits in Tucson rose 17% in 2020 during the pandemic. Those houses are yet to be built so inventory for new homes will see a substantial increase in 2021.
“The values are increasing steadily despite everything that’s going on right now, with COVID and everything else,” Droubie said. “So I think people opening up their notices are not surprised.”
To help homeowners through the process, the assessors office will hold a series of informational meetings where questions can be answered.
“If you see that value and it seems much higher that what you think it would sell for, then what you need to do is file an appeal with the assessors office,” Droubie said.
It doesn’t mean the taxes will be lowered but it will give property owners a better understanding of why the property value is where it is.
“At the assessor’s office, we’re not perfect,” she said. “And so mistakes happen and sometimes things get valued too high.”