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Warning: New Maricopa County Residency Affidavits Coming In The Mail. . . Do Not Ignore

Feb 06

filed under: 2nd Home Buyers, Buying A Home, Living In Fountain Hills, Yada Yada

That’s right, along with your Notice of Full Cash Value Valuation, expect to receive an affidavit from the County Assessor’s Office attesting that you live in your house. Do not ignore this affidavit or toss it into the trash as doing so could result in a higher tax bill on your property.  For those of you that are owner-occupants you are considered to be a Class 3 and are entitled to receive or continue to receive a homeowner rebate on your tax bill up to $600. The rebate is factored into your property tax bills, so don’t go looking for a check in the mail.

For those of you that own your property but rent it out through most of the year you are not entitled to the homeowner’s rebate and will need to attest to this use of your property. Perjury is not an option here. Totally not worth it. If you use your property as a rental it is a Class 4 type property. Prior to this newly enacted legislation you may have been receiving the homeowner’s rebate as your property may have been looked at as having been owner occupied because you never reported the fact that your property is used as a rental.

Now before all of you second home or vacation home owners start to panic because you rent your place out once in a while you may continue to qualify for the homeowners rebate.  If your property was not rented for more than three months in the preceding twelve consecutive months and you do not intend to rent it  for more than three months during the next twelve consecutive months you will continue to be a Class 3 type property and continue to receive the benefits of the homeowner’s rebate on you property taxes. Whew!

Also for those of you that rent your property out to a member of your family you may also still qualify for the homeowner’s rebate. I would suggest you read what type of family member qualifies in the Arizona Statute  Title 42 Taxation – Section 42-12053 Criteria for distinguishing residential property from rental property.

Be aware, this affidavit is time sensitive. You must fill out your affidavit whether you occupy your home or rent it out and return it to the Maricopa County Assessor’s office within 60 days of receipt. Failure to do so will result in your property automatically being identified as a Class 4 rental property whereby your property taxes could increase up to $600 annually depending on your home’s value. In addition this is not a one time affidavit, going forward these affidavits will be sent out every other year.

Now don’t go an confuse these class 3 and class 4 identifications as some type of “class warfare” that we hear about today in the news. I mean “really”. This is simply Maricopa County’s way of saying you are not entitled to a homeowner’s rebate if you indeed are not occupying the home, but are renting it out for rental income . . . and yes Maricopa County needs the extra $39 million dollars of revenue it is predicted to bring in.

Written by Howard Harris