If you are relocating to Arizona, then chances are you are not familiar with the property tax system in the state. If you will have a mortgage on your new home, then your mortgage company will take care of the payments and escrow as a part of your mortgage payment each month. But it is always a good idea to have at least a working knowledge of the process. And once your mortgage is paid off, it will become your responsibility to take care of the tax payments.
The county assessor’s office establishes a value for all properties on January 1 of the previous year of the tax bill. In August of the following year, the tax rates are set. The total tax rate for your property is a mix of the primary and secondary tax rates that are levied by the various jurisdictions that pertain to your property. By March 1st of each year you will receive a notice of value postcard in the mail to see the value assessed to your property.
Property taxes in Arizona are billed in arrears so your first half payment is not due until October 1st. The second half of the year is due the following March 1st. You have the option to pay a single payment for the entire year, and that is due by December 31st. The primary portion of your property tax is allocated to the operating and maintenance budget for state and local governments and the secondary portion is used for voter approved items such as school budget overrides and special district levies.
To give you a perspective on what to expect to pay in property tax in Arizona, the effective property tax rate is .6696. On a $100,000 home that equates to $600 in property tax. The national average is much higher and would result in a payment of $1,150 per year, making Arizona the 7th lowest in property taxes in the country. But even though the tax rate is low, the state will not waive interest on an unpaid bill if you claim to have not received a statement or bill. Statements can be viewed online at the website of your county.