Arizona

Property Classification

The Arizona property tax system is based on the principle of uniform valuation of property at its full cash value. All real property and business personal property is subject to tax except that made specifically exempt. Arizona has adopted a property classification scheme in which property is generally classed according to its use. Different assessment ratios apply to the different classes of property.

Property is classified by statute into 9 classes. Timber land with standing timber is defined under Class 1. (AZ Code Sec 42-12001(2)) Exempt from taxation are parcels owned by veterans, disabled persons, certain charitable organizations (educational, religious), and property which is owned for purposes of preserving and protecting scientific, biological, geological, paleontological, and natural or archaeological resources.

Theassessment ratio for Class 1 property is 18% (beginning from and after December 31, 2015), this is the amount that is multiplied by the full cash value to arrive at an assessed value. The assessed value is then multiplied by the tax rate to calculate the property tax.

Arizona eliminated the severance tax on timber products, effective November 1, 2006.