I heard a first the other day … someone say the property taxes here in the Phoenix real estate market were a little higher than they were willing to pay.
For those unfamiliar with Arizona’s general political climate, there remains a distinct Old West mentality in these parts. Good government is less government, that sort of thing. And mentioning the word “taxes” usually will cause a rope to be brandished. We just don’t to them. (At least not to ourselves – rent a car here and you’ll understand.)
Unlike some states where the property taxes are pegged to the purchase price of the home, property taxes here in Arizona are based on the assessed value of the property. And this assessed value usually is a bit less than a home’s actual market value.
Tax rates vary depending on where you are and what school district you’re in; if you’re in a place like Sun City, there are no school taxes and thus the rates are substantially lower. But if you’re looking for a ballpark figure that will get you close, figure your property taxes and going to be around $1 per square foot. That’s not really how it’s figured but it seems to come to that number, or thereabouts.
One other note … if you’re buying a property and receive the title commitment from the escrow company, don’t flip out when you see taxes are in arrears … at least, not unless they are massively in arrears. In Arizona, taxes are assessed on January 1 but paid in arrears on October 15 and the following March 15.
And one final note for my Canadian readers. That sales tax on real estate that you have up north of the border? It doesn’t exist here.
[tags]Phoenix real estate[/tags]