Welcome Tax Agent/Attorney Meeting March 13, 2014 ASSESSOR Paul D. Petersen.

Welcome

Tax Agent/Attorney MeetingMarch 13, 2014

ASSESSORPaul D.

Petersen

Introductions – New Roles

Paul Petersen – Assessor

oAppointed August 19, 2013

oDOR Certified Appraiser

oStarted in Office January 2006

oAttorney

oASU Graduate

ASSESSORPaul D.

Petersen

Introductions – New Staff

Robert Pizorno – Communications Director

Michael Combrink – Legislative Liaison

Eric Bails– Chief Technology Officer

ASSESSORPaul D.

Petersen

Introductions – New Roles

Tom Rief – Managero Splits Mapping o Ownershipo Deeds

Armando Chavez – Managero Personal Exemptionso Public Assistanceo Permits o Appeals o Splits o Organizational Exemptions o Senior Valuation Protections

ASSESSORPaul D.

Petersen

Introductions – New RolesSocorro Candelaria – Manager

o Industrial/Warehouseso Hospitalso Hotelso Resorts o Retail o Shopping Centerso Business Personal Property/IPR

Cathe Cuneo – Managero Canvassingo Agricultureo Lando Mobile Homes

ASSESSORPaul D.

Petersen

Introductions – New Roles

Diane Skidmore – Manager

o Apartments 13 & Upo Nursing Homeso Convenience Stores o Mini Storageo Restaurants o Officeso Miscellaneous Commercial

ASSESSORPaul D.

Petersen

Management Team

Tim Boncoskey – Chief Deputy Assessor

David Boisvert – Chief Appraiser

Lesley Kratz – Senior Advisor

Tim Holland – Residential Manager

Lisa Bowey – Litigation Director

Allen Zingg – Human Resource Manager

Justin Frank– Budget Analyst

ASSESSORPaul D.

Petersen

Date Deadlines

o February 21, 2014 – 2015 Notice of Values Mailed

o April 22, 2014 – Appeal Filing Deadline o June 16, 2014 – Incomplete Petitions

must be filed directly to SBOEo August 15, 2014– Deadline for the

Assessor to mail decisions on the appeals

ASSESSORPaul D.

Petersen

Please no Highlighted Areas on the Appeal Forms

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Petersen

Incomplete PetitionPrimary Reasons:

o Outdated DOR form

o Signature(s) missingo Electronic signatures will be accepted

o Missing Agent Authorization form

o Missing supporting evidence

o Parcel was not noticed

o Invalid Parcel/Missing Parcel

o Duplicate appeal (procedure is to accept the first one entered into the appeals system)

ASSESSORPaul D.

Petersen

Petition for Assessor Review ARS 42-16051

“An owner of property that in the owner’s opinion has been valued too high may file a petition with the Assessor”

o Petition shall state:o Owner’s opinion of valueo Basis of valuation approach:

o Market – must include one (1) comparable property in the same geographic area as the subject

o Cost – must include cost to build plus land value

o Income – must include income and expense data relating to the property

ASSESSORPaul D.

Petersen

Income Approach

Pursuant to ARS 42-16052, petition based on the income approach shall include:

o Income and expense data relating to the property for the three most recent consecutive fiscal years

o Information ending on or before September 30 of the previous year

If the income and expense data are not available to the petitioner, the petitioner shall file income and expense data as they become available.

ASSESSORPaul D.

Petersen

Income Approach If a petitioner uses the income approach to determine valuation, the petitioner shall file a sworn affidavit under penalty of perjury acknowledging the information contained in the petition is true and correct to the best of the petitioner's knowledge.

Filing may be submitted by:o Petitionero Officer of a corporate petitionero General partner o Designated agent

ASSESSORPaul D.

Petersen

Multiple Parcel Appeals The petition may include more than one

parcel of property if:

o Part of the same economic unit according to department guidelines

o Owned by the same ownero Have the same useo Appealed on the same basiso Located in the same geographic

area o Submitted on a form prescribed by

the Department

ASSESSORPaul D.

Petersen

Meeting Room Assignments

Depot Building (501 W Jackson):o Residentialo Exemption

Administration Building (301 W Jefferson, Suite A210)o Commercialo Agricultural/Lando Mobile Home

ASSESSORPaul D.

Petersen

Maricopa County Assessor’s Office

Tax Year 2015 Valuation Overview

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Petersen

Maricopa County Property Types

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Petersen

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Petersen

Median Values FCV % LPV %

FCV 2015 FCV 2014 Change Change

VACANT LAND 26,000 21,100 23.22% 5.00%

SINGLE FAMILY RESIDENTIAL 160,700 128,000 25.55% 5.00%

CONDOMINIUM 91,000 71,200 27.81% 5.00%

APARTMENTS 126,600 101,700 24.48% 5.00%

COMMERCIAL 376,400 342,400 9.93% 5.00%

MANUFACTURED HOUSING 56,100 50,000 12.20% 5.00%

All exempt property, new construction, additions, alterations or any change in use have been removed from this analysis

Tax Year 2015 & 2014 ComparisonFull Cash Value Analysis

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Petersen

Vacant Land

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Petersen

Vacant Land

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41% of the 2010 Sales are REO

34% of the 2011 Sales are REO

9% of the 2012 Sales are REO

3% of the 2013 Sales are REO

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Petersen

Residential/Condo

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Petersen

Residential/Condo

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Petersen

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42,460

46,165

25,892

10,998

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Petersen

2007: 10,998

2008: 42,460

2009: 52,866

2010: 54,485

2011: 46,165

2012: 25,892

2013: 11,379

Residential/Condo

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Petersen

Residential

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Petersen

Condo

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Petersen

Commercial

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Petersen

Commercial

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Petersen

Commercial

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9% of the 2009 Sales are REOASSESSOR

Paul D. Petersen

Commercial % change by type

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Petersen

Apartments

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Petersen

Apartments

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Petersen

Apartments

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Petersen

Apartments

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32% of the 2010 Sales are REO

31% of the 2011 Sales are REO

7% of the 2012 Sales are REO

2% of the 2013 Sales are REO

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Petersen

Apartments Median % Change

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Petersen

CAMA Model Overview

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All remaining property types are valued using the Cost Approach

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Petersen

PROPERTY TYPE MODEL TYPE

Residential Market

Condo Market

Vacant Land Market

2-12 Unit Apartments Market

13 + Unit Apartments Income

Hotels/Resorts > 200 Rooms Income

Commercial Condo Market

Warehouse/Industrial Market

Reminders For 2015• Commercial Cost Sub Market

Adjustment

– Based on Commercial Market Area and Use Code

– Excludes statutorily assessed shopping centers

– Excludes exempt government property (9300-9800’s)

– Offices > 10,000 sq ft have a separate schedule

– Hospitals (PUC 211x, 901x) -30%– Data Centers 1507 -25%

– Applied to the improvement value only

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Petersen

Commercial Market Areas

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Market Area Adjustment Commercial type1 -20% Retail Excluding 1130’s (strip)1 -40% Remaining CM Cost2 -30% Retail Excluding 1130’s (strip)2 -40% Remaining CM Cost3 -20% Retail Excluding 1130’s (strip)3 -40% Remaining CM Cost4 -25% Retail Excluding 1130’s (strip)4 -40% Remaining CM Cost5 -30% Retail Excluding 1130’s (strip)5 -40% Remaining CM Cost6 -30% Retail Excluding 1130’s (strip)6 -40% Remaining CM Cost

ASSESSORPaul D.

Petersen

Commercial Market Areas

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Market AreaSub Mkt.

Adjustment Commercial type

1 -20% Retail Excluding 1130’s (strip)1 -40% Remaining CM Cost

2 -30% Retail Excluding 1130’s (strip)2 -40% Remaining CM Cost

3 -20% Retail Excluding 1130’s (strip)3 -40% Remaining CM Cost

4 -25% Retail Excluding 1130’s (strip)4 -40% Remaining CM Cost

5 -30% Retail Excluding 1130’s (strip)5 -40% Remaining CM Cost

6 -30% Retail Excluding 1130’s (strip)6 -40% Remaining CM Cost

ASSESSORPaul D.

Petersen

Proposition 117

What does this mean?•To Values•To Taxes•To Taxpayers

ASSESSORPaul D.

Petersen

Brief Summary

• Market exploded from tax year 2007 - 2009

• Bubble burst in tax year 2010 and continued downward spiral through tax year 2013

• The tax formula did not change which caused many to see an increase in property taxes

• The public became frustrated with the system

ASSESSORPaul D.

Petersen

Prop 117 Changes – Value• Limited Property Value can only increase to

a maximum of 5% from the previous year, excluding new construction.

• Exceptions to Prop 117• Centrally Valued Properties• Business Personal Properties• Senior Valuation Protection (freezes LPV)• New Construction, Splits, Additions,

Demolitions

ASSESSORPaul D.

Petersen

Prop 117 Changes – Taxes

• The property taxes will still be broken into the two categories: Secondary and Primary

• Secondary/Primary taxes will use the Limited Property Value in the calculation

• No change to the calculation of the levies or tax rates

ASSESSORPaul D.

Petersen

Prop 117 Changes – Taxpayer

• Easier to explain when market conditions fluctuate

• Does not mean taxes will be limited to a 5% increase

• Taxpayers need to be aware of changes in a taxing jurisdictions budget

ASSESSORPaul D.

Petersen

Valuation Trends

Prop 117 Begins

ASSESSORPaul D.

Petersen Prop 117 Begins

Conclusion

• The duties of the Assessor’s office have not changed

• The Office anticipates that there will be less appeals

• The focus will be on canvassing the county

• The tax formulas have not changed as there is still a primary and a secondary tax

ASSESSORPaul D.

Petersen

ContactsPaul Petersen, Assessor

• [email protected]• 602-506-3877

David “Beau” Boisvert, Chief Appraiser• [email protected]• 602-372-1629

Armando Chavez, Valuation Relief Manager• [email protected]• 602-506-5727

ASSESSORPaul D.

Petersen

Questions

• Questions asked and emailed will be available on the website:

• mcassessor.maricopa.gov/category/news

ASSESSORPaul D.

Petersen