According to the Arizona Republic’s article “Valley median home prices hit 8-year low” published on February 21, 2009, the year-over-year price change from January 2008 to January 2009 is a negative 34%. The article further indicated that the median price for a home in the Phoenix metro area is $130,000, or the same median price achieved in January 2001.
The Maricopa County Assessor, Keith Russell, is currently mailing 2010 property valuation notices to property owners in Maricopa County. These valuation notices will fix the assessed value of your home for the 2010 tax year if you do not file an appeal. Please take note that you must file your appeal within 60 days of the notification. For example if your notification date is February 20, 2009, your appeal deadline is April 21, 2009. If you fail to file an appeal by the deadline your valuation cannot be challenged.
This year you should carefully review your property valuation notice. It stands to reason that if property resale values have fallen by 34% over the last year that property valuations and property taxes should fall by 34%. You should note that governments, like businesses, tend to be quick to raise taxes and prices in the good times and slow to lower them in the bad times.
If you want to appeal your property valuation you can do so at http://www.maricopa.gov/assessor/PropertyValueAppeals.aspx
To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.
For additional Information please contact:
Robert K. Minniti, CPA, CFE, Cr,FA, CFF, MBA
Website: http://www.minnitiaccounting.com
LinkedIn: http://www.linkedin.com/in/robertminniti
Comments
Bob's suggestion is a great way to reduce your fixed expenses. If you purchased your property in between 2001 and 2007, you should definitely look at the assessed value and see if it is higher than the market value. If it is, it is very easy to file for a reduction in property taxes. Just contact the assessor's office.
Michelle
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It won't be too long and the Phoenix homes will sell for taxes and HOA fees.
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