Tax Bills Will Increase For Non-Primary Residences

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Second-home owners will face a steep increase in their property tax bills this year, thanks to a change in state law.

HB 2001 created a separate category for homes that aren’t a person’s primary residents and houses owned by banks.

Previously, people with several homes they weren’t renting out could qualify for the Less State Aid to Education, which effectively discounted their property tax bill. The loss of that discount could boost tax bills as much as $600, depending on the value of the property and the tax rate in the school district.

Ironically, the extra money will mostly go to school districts although second-home owners rarely have children in local schools.

Now, only owner-occupied homes will not get the class 3 status that provides the discount.

This new law changes the definition of “Residential property” found in ARS 15-972 (K)(2), which was previously as follows: ““Residential property” includes all owner occupied real property and improvements to the property and all owner occupied mobile homes that are used for residential purposes.”

The Gila County Assessor has identified legal class 3 residential properties where the physical location of the property and the mailing address of the owner differ and has mailed out notices of the change.

Anyone who receives the 2012 Notice of Change card that changes a property’s legal class from legal class 3 to legal class 0401 for a home that’s actually his or her permanent residence should call the Gila County Assessor at (928) 402-8711.

Taxpayers face penalties if they don’t pay half of the taxes in excess of $100 on all personal property secured by real property and one half on all real property by Nov. 1 2012. If the tax bill exceeds $100, the first half is due by Oct. 1 and the second half by March 2013. The penalty amounts to 1.3 percent of the amount owed each month.

Make payments at the office of the Gila County Treasurer, 1400 E. Ash, Globe, Ariz. or mail to Gila County Treasurer, P.O. Box 1093, Globe, AZ 85502.

Comments

frederick franz 1 year, 6 months ago

"If the tax bill exceeds $100, the first half is due by Oct. 1." Is this an error? My tax statement instructs to pay first half tax by November 01, 2012, at 5:00 PM.

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