Did you know that in Arizona, sending property tax statements are not required by the state? This is typically a courtesy done by the counties. If you are a homeowner, not receiving a statement is not a legal reason for failure to pay your property tax bill, which may result in interest and late fees. Owning a property is a big responsibility and understanding your property taxes is one of the obligations it is important to know.
How are property taxes assessed?
In Arizona, real estate or properties are valued and classified by the county assessor in each individual county. This is the office that all property tax payments must be sent to. Where you live within a county plays a role in how much you will pay in property taxes.
Homeowners pay taxes on the assessed rate of the home or property. This assessment typically changes from year to year and is based on factors such as home sales in your neighborhood, location, lot size, bond assessments and other factors. After an assessment is made, homeowners receive a “Notice of Value” card in the mail each year, before March first. Once this card is received, homeowners have the option to appeal the amount or the classification of their property, if they believe it is not accurate.
When are property taxes due?
Property taxes are paid in two installments. The tax statements for the current year are sent out in September. The first half of the bill is due October first. Although this is the due date, property taxes do not become delinquent until November first. The second installment is due on March first and becomes delinquent on May first. There is also the option to pay your taxes in one single installment. The due date for this is December 31st.
How do you pay property taxes?
There are a few options available for paying your property taxes. When you get the bill in the mail, remember it must be paid by the final due date. You can make this payment online using the county’s payment system, mail a check using the envelope provided, or bring your payment to a designated office in-person.
Another option for paying your property taxes is to issue payments through your mortgage lender. Your property tax payment will typically be allocated monthly throughout the year and added to your mortgage payment each month. When it comes time to pay the property taxes, the lender will send the payment on your behalf.
If you are still unsure about the process or have questions regarding paying your property taxes, we recommend contacting your accountant to help determine what may be the best option for your individual situation. Other valuable resources include the county assessor’s office and your lender.
Property taxes are one of many components that are part of the closing process in a real estate transaction. Fortunately, the professionals at Landmark Title are here to help you work through the entire escrow and title process as seamlessly as possible. Contact us today and we will answer any questions.