Property taxes in Arizona are assessed based on?

Property taxes in Arizona are assessed based on the value of the property. This approach involves determining the property's assessed value, which is generally calculated through a combination of factors including market conditions and property characteristics. The assessed value is then multiplied by the local tax rate to determine the amount of tax owed.

Using the market value of a property for assessment rather than the price paid for it or capital gains helps maintain a more accurate and fair taxation system, reflecting the current worth of the property. This system allows for adjustments that account for fluctuating real estate markets.

Other choices, such as assessments on the property or the capital gains, do not form the basis for calculating property taxes. Assessments are derived from market value rather than assessed on their own, and capital gains are relevant for taxes related to the sale of the property, not for property tax assessments.