Taxes cannot be appealed. Only property valuation and classification can be appealed according to A.R.S. § 42-16051. It may be helpful to understand why a tax bill experienced a significant increase from one year to the next. A typical cause of an increase in tax bill is because of an increase in the limited property value (LPV) since the tax bill is based on the limited property value and not the full cash value. Was Rule A or Rule B applied to the property value in determining the limited property value.  Refer to the Rule A and Rule B explanations above.

Tax bills are based on the limited property value that is determined by a statutory formula. The Limited Property Value is determined by law. State statutes provide the formulas, Rule A or Rule B, to be used in calculating the Limited Property Value (see Arizona Revised Statutes §§ 42-13301 through 13304).

The Limited Property Value is determined by law. State statutes provide the formulas to be used in calculating the Limited Property Value (see Arizona Revised Statutes §§ 42-13301 through 13304).

RULE A: Typically, for real property, the Limited Value will increase 5% over the prior year's Limited Property Value. The Limited Property Value can never exceed the Full Cash Value.

RULE B: One exception to this calculation of the Limited Property Value is if there has been a physical change (new improvements, demolition, change in land size) or change in use of the property or an erroneous assessment in prior years. In these instances, the Limited Property Value is established by the relationship (percentage) of Full Cash Value to Limited Property Value of other properties within the same Legal Classification within a specified area.