Property Valuation and Taxes

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Arizona has a two-tiered property tax system consisting of a Limited Primary Value (LPV) and a secondary Full Cash Value (FCV):

  • Limited Primary Value (LPV) is a value determined by a statutory formula mandated by the Arizona State Legislature. LPV is limited in the amount of increase in any given year and cannot exceed the property’s Full Cash Value. Taxes on primary or “limited” values fund operations and maintenance of the jurisdictions shown on property tax statements.
  • Secondary Full Cash Value (FCV) is a reflection of the Assessor’s estimate of the true market value of a property. Secondary or “unlimited” property taxes are calculated from this value and go to fund voter-approved bonds, budget overrides, and certain special districts.

How are my property taxes calculated?

Primary property taxes are calculated from the LPV and secondary taxes from the FCV. The LPV and FCV are first each multiplied by an assessment ratio to reach the property’s assessed valuations (AVs); the assessment ratio for residential properties is 10%. Primary and secondary property taxes are then calculated per every $100 of a property’s AV.

For instance, in tax year 2014 (Goodyear’s fiscal year 14-15) the median Goodyear home had a secondary FCV of $142,200. To calculate property taxes paid:

  • The FCV of $142,200 would be multiplied by 10% to reach the AV of $14,220
  • Secondary property taxes would then be paid on every $100 of this AV amount ($14,220 / 100 = $142.20)
  • Multiply $142.20 by the property tax rate to reach the secondary property taxes paid

Remember that property taxes are paid on both the LPV and the FCV. Additionally, values listed in one tax year will be used in the jurisdictions’ following fiscal year (FY) budgets. For example, property taxes based off of AVs in tax year 2014 are used in the City’s FY 14-15 budget. See the Maricopa County Assessor’s website for more information on property tax calculations and to find more details on your property.

What is the difference between a tax levy and a tax rate?

A tax levy is the entire amount of money to be raised by direct taxation as reported by each district. A tax rate is the property tax charged per $100 of assessed value (AV) to arrive at the levy. Each taxing jurisdiction will set their budgets on an annual basis and these budgets will be used to determine the necessary tax levy and tax rate for each district.

Where do my property taxes go?

For Goodyear residents, the majority of property taxes paid go directly to education. Other government agencies receiving a portion of your property tax dollars include Maricopa County, the City of Goodyear, and various special districts. Your property tax bill lists each agency’s tax rate and the exact amount that each agency receives. Visit the Maricopa County Treasurer’s Office for information on reading and understanding your tax bill.

The chart below is based on average property taxes paid by Goodyear residents.

Property Tax Dollar Bill v3 

How does the City calculate its property tax rate?

Each year the Council approves the levy during the budget process based on the amount needed to make debt payments and fund basic services. This levy then establishes the property tax rates. Other agencies collecting property taxes follow a similar procedure.

How does the City use my property tax dollars?

Primary or “limited” property taxes provide general funds for basic governmental services like Public Safety, Parks & Recreation, street maintenance, and administration. Primary property taxes are limited to a 2% increase each year by the State. Primary property taxes comprise approximately 10% of the City’s general fund revenues. Secondary or “unlimited” property taxes provide funding for voter-approved bonds which fund construction of public facilities and infrastructure. These two rates together comprise the City’s total property tax rate.

Why are my property taxes different from someone else who lives in Goodyear?

Differing property values, as established by the Maricopa County Assessor, may be part of the reason. Additionally, within Goodyear there are a number of different school districts and special districts that can lead to wide variances in property tax bills. Within the city of Goodyear alone the following education and special districts can lead to variations in property tax bills:

  • Four elementary school districts (Litchfield, Avondale, Liberty, Mobile)
  • Two high school districts (Agua Fria, Buckeye Union)
  • Ten Community Facilities Districts
  • Two irrigation districts (Roosevelt, McMicken)
  • The Central Arizona Groundwater Replenishment District (CAGRD)

What are Community Facilities Districts (CFDs)?

CFDs are special purpose, tax levying public improvement districts that are separate and apart from a municipality. A debt of a CFD is not a debt or obligation of the City. CFDs are typically formed at the request of developers to provide and finance public infrastructure and improvements for benefited landowners. These projects may include: water and sewer facilities, flood control and drainage improvements, design and construction of roads, traffic signals, emergency facilities, parks and park improvements, school sites and facilities, and landscaping improvements.

There are currently ten CFDs located within Goodyear. Some properties are not located within any CFD, while other properties may be within the boundaries of two CFDs. Click here to view a map of the CFDs within Goodyear.

CFD property tax rates vary by year depending on the levy needed to cover debt service requirements. CFD will appear under the Special District portion of your property tax statement.

 


 

Maricopa County Links:

Maricopa County Assessor

Maricopa County Treasurer – Understanding Your Tax Bill

Maricopa County Treasurer – Tax Guide

 

City of Goodyear Resources:

Transparency in Government Spending

Annual Budget Page