What is Limited Property Value?
Limited Property Value (LPV) is used to compute primary taxes for the maintenance and operation of school districts, cities, community college districts and counties. The LPV is calculated according to a statutory formula mandated by the Arizona State Legislature and cannot exceed Full Cash Value.
Limited Property Value (LPV) is the basis for computing primary taxes used to provide operational expenses for government and schools. It is calculated according to a statutory formula. The LPV cannot exceed Full Cash Value. What is Real Property? Real Property includes land, buildings, and other improvements on the land. What is Legal Class? The Legal Class is determined by the use of the property. If an individual parcel has more than one use, it will be assigned multiple Legal Classes and a “mixed ratio” will be applied to the value. How is Assessed Value determined? The Assessed Value of each property class is determined using percentages set by the State Legislature. The following percentages apply to the three most used classifications. • Residential -10% • Commercial -25% for Tax year 2005 declining to 20% over 10 years • Land -16% How are my Property Taxes computed? The Assessed Value divided by 100, times the tax rate (set in August of each year) determines property taxes bill
