America's Property Tax Advisor

Arizona Lowers Commerical Assessment Rate

BY RICK EDWARDS, PHOENIX, MAY 2022

Seventeen years ago, Arizona’s assessed valuation rate for commercial property was 25%. Through the years, the rate has been reduced to help ensure the state’s continued economic competitiveness and to reduce the disparity in property tax burdens on commercial property taxpayers versus homeowners.

 

Last month, Governor Doug Ducey signed a bill into law that will continue to lower the rate for business properties for the next five years.

 

Senate Bill 1093 mandates the following assessment rate changes for Class One property:

 

  • 17.5% through December 31, 2022

  • 17% starting January 1, 2023

  • 16.5% starting January 1, 2024

  • 16% starting January 1, 2025

  • 15.5% starting January 1, 2026

  • 15% starting January 1, 2027

 

SB 1093 also phases down the state equalization assistance property tax rate for school districts as follows:

 

1.

 

Tax Year 2022 is $0.4128

2.

 

Tax Year 2023 is $0.4009

3.

 

Tax Year 2024 is $0.3909

4.

 

Tax Year 2025 is $0.3824

5.

 

Tax Year 2026 is $0.3295

6.

 

Tax Year 2027 is $0.2871

 

In addition, SB 1093 allows a county board of supervisors to levy a fire district assistance tax, not to exceed $3.375 per $100 of assessed valuation for tax year 2022; $3.50 per $100 of assessed valuation for tax year 2023; $3.75 per $100 of assessed valuation for tax year 2024 and each tax year thereafter, or the amount of the levy in the preceding tax year multiplied by 1.08, whichever levy is less.