What is the legal classification of property?

The legal classification of property defines the assessment ratio based on the property's use as defined by Arizona law. For example, a residence that is owner-occupied is "legal class 3". Legal class 3 property is assessed at 10% of its full cash value. If a property is used for commercial purposes, it would be identified as "legal class 1.12" and is assessed at 18% of its full cash value. Vacant land is "legal class 2" and is assessed at 15% of its full cash value.

Special Note

A new law changed in 2012 restricts legal class 3 owner-occupied residential classification to an owner's primary residence. (A home may qualify as class 3 if it is a primary residence of a qualified family member.) Second homes, vacation homes, etc. which were classified as legal class 3 in the past now must be classified as legal class 4. Both class 3 and class 4 properties have a 10% assessment rate. A legal class 3 property, however, receives a state aid to education reduction on the tax bill computation which is not received by a legal class 4 property. To change your property to a legal class 3 primary residence status, file an Application for Reclassification of Property - To Owner Occupied with the Assessor.

Show All Answers

1. Why did I receive this notice of valuation?
2. What does it mean?
3. Does everyone get a notice?
4. What is the full cash value?
5. What is the limited property value?
6. What is the legal classification of property?
7. Why are 2023 values being set now?
8. Why did the full cash value go up?
9. Can the limited property value go up and the full cash value go down?
10. How can the full cash value increase in a depressed market?
11. Is the County just increasing values to get more tax revenue?
12. Did every property owner get the same increase/decrease?
13. How is the full cash value determined?
14. Why did the value go up when I have done nothing to the property?
15. What can I do about the increase?
16. Are my taxes going up?
17. I can’t afford my property taxes. What can I do?
18. What happens if I file an appeal?