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Since 1978, Arizona has provided a tax break to owners of historic homes
Since 1978, Arizona has provided a tax break to owners of historic homes
- The purpose of the tax break is to incentivize owners to maintain the historic appearance of their home in order to preserve the look and feel of historic neighborhoods
- You can read the statute yourself, beginning here
- Most residential properties are taxed as Class 3 properties
- The assessment ratio for Class 3 properties is 10%
- If a house is registered as a "noncommercial historic property", it is taxed as a Class 6 property
- The assessment ratio for Class 6 properties is 5%
- When a house is registered as a historic property, the taxes on that house will drop by approximately 40%
- Amazingly, only about 60% of eligible homes have signed up for this property tax break!
Here's a personal example:
Here's a personal example:
- I bought my first home in Phoenix in 2012 (actual picture below)
- It was built in 1940 and located in an established historic district
- I knew about the historic property tax break but soon realized that I was not receiving it
- In 2013, my property taxes were $2,287.34 on an assessed value of $145,321
- After getting the home classified as a historic property, the 2014 property taxes dropped to $1,464.82 even though the assessed value had increased to $159,853
- I saved $822.52 (36%) in property taxes in the first year, even with a 10% increase in property value
- Without the increase in assessed value, my savings would have been $955.68 (42%)
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