A.R.S. tit. 42 ch. 16 — Arizona Revised Statutes Title 42 Chapter 16 — Property Tax Appeals And Reviews

42-16001. Designation of taxpayer agent A. A person who owns, controls or possesses property that is valued by the county assessor or the department of revenue may each year designate an agent to act on the person's behalf on any matter relating to the review of the property valuation before: 1. The assessor. 2. The department of revenue. 3. The county board of equalization. 4. The state board of equalization. B. The designation of an agent under this section: 1. Shall be made annually in writing to the county assessor or the department of revenue on a form prescribed by the department. 2. Expires at the end of the calendar year. C. The form shall be filed with the petition under article 2 of this chapter or chapter 14, article 1 of this title with the county assessor and the county board of equalization or the state board of equalization. Thereafter, notices issued by the assessor, by the department of revenue or by either board of equalization relating to reviewing the valuation of that property shall be sent to the agent. 42-16002. Changes and corrections in tax roll to reflect determinations on review or appeal A. The county assessor or county treasurer, whichever is appropriate, shall make the necessary changes in the tax roll and records to reflect the determinations that change valuations or classifications of property that result from reviews, administrative or judicial appeals or correction of errors and omissions under this title. B. If a review or administrative appeal pursuant to article 2, 3 or 4 of this chapter or a judicial appeal pursuant to article 5 of this chapter results in a reduction of the valuation or a change in the classification of property, in the next year the valuation or classification of property shall be the valuation or classification that was determined by the review or appeal unless either: 1. There is new construction, a structural change or a change of use on the property as prescribed by section 42-13302, subsection A, paragraph 2. 2. Chapters 11 through 19 of this title require a specific annual formula for the valuation. C. This section does not limit the right of a property owner to appeal the valuation or classification of the property. 42-16051. Petition for assessor review of improper valuation or classification A. An owner of property that in the owner's opinion has been valued too high or otherwise improperly valued or listed on the roll may file a petition with the assessor on a written form prescribed by the department. B. The petition shall state the owner's opinion of the full cash value of the property and substantial information that justifies that opinion of value for the assessor to consider for purposes of basing a change in classification or correction of the valuation. For purposes of this subsection, the owner provides substantial information to justify the opinion of value by stating the method or methods of valuation on which the opinion is based and: 1. Under the income approach, including the information required in section 42-16052. 2. Under the market approach, including the full cash value of at least one comparable property in the same geographic area or the sale of the subject property. 3. Under the cost approach, including the cost to build or rebuild the property plus the land value. C. The petition may include more than one parcel of property if they are part of the same economic unit according to department guidelines or if they are owned by the same owner, have the same use, are appealed on the same basis and are located in the same geographic area, as determined pursuant to department guidelines, and are on a form prescribed by the department. D. The petition shall be filed within sixty days after the date the assessor mailed the notice of valuation or the amended notice of valuation under section 42-15101. United States postal service postmark dates are evidence of the date petitions were filed for purposes of this subsection. E. The petition for review form for property that is listed as class three pursuant to section 42-12003 shall contain simplified instructions and shall be separate from the petition forms used for other classes of property. 42-16052. Contents of petition based on income approach to value A. A petition that is filed with the assessor, based on the income approach to value, shall include income and expense data relating to the property for the three most recent consecutive fiscal years of the petitioner ending on or before September 30 of the previous year. If the income and expense data are not available to the petitioner, the petitioner shall file with the petition such income and expense data as are available. The department, by rule, may establish additional information to be filed if the required income and expense data are not available. B. If a petitioner under this article uses the income approach to determine valuation, the petitioner, an officer of a corporate petitioner, a general partner or a designated agent shall file a sworn affidavit under penalty of perjury that the information contained in the petition is true and correct to the best of the petitioner's knowledge. 42-16053. Rejection of petition for failure to include substantial information; amended petition; appeal If the county assessor rejects a petition because it fails to include substantial information required by sections 42-16051 and 42-16052, and if the notice of rejection is mailed: 1. On or before June 15, the petitioner may file an amended petition with the assessor within fifteen days after the notice of rejection is mailed. 2. After June 15, the petitioner may appeal within fifteen days to: (a) The county board of equalization as provided by article 3 of this chapter, if a county board is established in the county. (b) The state board of equalization, if a county board is not established in the county. 42-16054. Meeting between assessor and petitioner A. At the petitioner's written request, the assessor shall meet with the petitioner at a time and place designated at least ten working days in advance by the assessor. B. If the petitioner is unable to appear and meet with the assessor at the time and place set by the assessor, the petitioner may submit written evidence to support the petition if it is submitted before the date of the meeting. 42-16055. Ruling on petition A. In all cases the assessor shall consider the petition and shall rule on each petition filed under this article by August 15 of each year. B. In considering a petition filed under this article the assessor shall consider the valuation fixed by the assessor on other similar property that is similarly situated. 42-16056. Appellate rights A. If the assessor grants the requested relief, the petitioner may not appeal the ruling. B. If the petitioner and the assessor reach an agreement within five business days after the conclusion of the meeting, both parties shall sign the agreement, and both parties waive the right to further appeal. C. If all or part of the petitioner's request is denied, the assessor shall mail, on the date of the ruling, to the petitioner at the address shown on the petition notice of the grounds of the refusal to make the requested change with a copy of the petition. Within twenty-five days after the assessor's decision is mailed, a petitioner whose request is denied may appeal to: 1. The county board of equalization, if a county board is established in the county, as provided by article 3 of this chapter. 2. The state board of equalization, if a county board is not established in the county, as provided by article 4 of this chapter. 3. Superior court as provided by article 5 of this chapter. D. A person who owns, controls or possesses property that is valued by the county assessor may not appear before the county or state board of equalization without first having filed a petition with the assessor as provided by this article unless otherwise authorized by law. A person shall not raise any issue if the issue was not included in the petition filed under this article. 42-16101. Definition of county board In this article, unless the context otherwise requires, "county board" means the county board of equalization. 42-16102. County board of equalization A. In each county with a population of less than five hundred thousand persons according to the most recent United States decennial census, the board of supervisors constitutes a county board of equalization. The clerk of the board of supervisors shall serve as the clerk of the board of equalization. B. A county board of equalization shall not be established in any county with a population of five hundred thousand persons or more. C. The board of supervisors, by a majority vote, may contract with the state board of equalization to review and hold hearings and make decisions on petitions filed under section 42-16105. 42-16103. Hearing officers A. In fulfilling the responsibilities of the board of equalization, the board of supervisors, by a majority vote, may appoint a hearing officer to review petitions filed under section 42-16105. B. An appointed hearing officer must meet the qualifications prescribed by the county board of equalization that at a minimum shall include experience in at least one of the following areas: 1. Real estate appraisal or sales. 2. Hearing property valuation appeals at the county or state level. 3. Arbitration. C. At least annually each hearing officer appointed pursuant to this section shall attend valuation review classes provided by the state board of equalization. 42-16104. Operation of county board A. One or more members of the county board or a hearing officer of the county board may hold hearings and take testimony to be reported for action by the county board. B. The county board or hearing officer shall meet as often as necessary to hear all petitions filed under section 42-16105. The county board shall mail notice of each hearing to all parties at least fourteen days before the date of the hearing unless all parties waive the notice requirement. The county board shall complete all hearings and issue all decisions under this section on or before October 15 of each year. C. The county board may change any valuation or legal classification of property that is valued by the assessor or hearing officer, if one is appointed. 42-16105. Appeal of valuation or legal classification from county assessor to county board A. If the county assessor denies all or part of a petition under section 42-16055, and if a county board of equalization has been established in the county, the petitioner may appeal the assessor's decision to the county board by filing with the clerk of the county board, within twenty-five days after the date that the assessor's decision was mailed to the petitioner, a copy of the written basis of the decision according to the instructions on the petition. B. The department may contest any proposed valuation or classification or any proposed change in valuation or classification before the county board. If, in the director's opinion, a decision of an assessor is erroneous, the director may appeal the assessor's decision to the county board within twenty-five days after the assessor's decision was mailed to the taxpayer and the department. In such an action the taxpayer shall raise any defense the taxpayer has to liability for the tax and any additional tax sought to be imposed. If issues other than valuation or classification are raised by either party, the action shall be tried as if it were an action pursuant to section 42-11005 or 42-11052. C. A property owner that receives a notice of valuation under section 42-15105 may appeal the valuation or legal classification to the county board as provided in subsection A of this section within twenty-five days after the date of the assessor's notice. 42-16106. Hearing A. The county board shall act on the petition, shall hear testimony presented in person at the hearing and may subpoena witnesses to testify regarding the petition. Unless all parties agree otherwise, each party shall submit evidence in person. B. The petitioner shall pay the cost of producing the petitioner's witnesses at the hearing. C. The assessor or the assessor's designated representative shall: 1. Attend all meetings and hearings of the county board. 2. Supply the board with all information that the assessor possesses. 42-16107. Evidence; basis for decision A. The decision shall be based on evidence presented by parties attending the hearing. B. The county board shall consider the valuation or legal classification fixed by the assessor on similar property that is similarly situated. C. The evidence permitted in an appeal relating to a petition based on the income approach to value is limited to the income and expense data filed with the petition, the testimony of the petitioner and any witnesses presented on the petitioner's behalf, and evidence presented by the assessor and the department. 42-16108. Decision A. Except as provided in subsection B of this section, the county board shall either grant or refuse the request of the petitioner, in whole or in part, as it considers just and proper within ten days after the date of the hearing, and in any event not later than October 15. B. In the case of an appeal under section 42-16105, subsection C, the county board shall complete the hearing and issue a decision on or before the third Friday in November of the calendar year preceding the year in which the taxes are levied. C. In the case of a personal property appeal under section 42-19052, the county board of equalization shall complete the hearing and issue a decision on or before December 1 of the calendar year in which the taxes are levied. D. Within ten days after its decision, the county board shall mail a copy of the decision to the county assessor and to the petitioner at the address shown on the petition. E. Any decision of the county board shall not exceed the county assessor's noticed valuation and recommended classification. 42-16109. Corrections and changes to tax roll A. The county board may correct any error or mistake in the assessor's valuation or legal classification under the law when the county board considers it necessary to list the property on the roll at its full cash value. B. The county board shall require the assessor to place on the roll and determine the valuation or legal classification of any property that is subject to taxation but that is not on the roll. In the absence of the assessor, the county board shall determine the valuation or legal classification of the omitted property and transmit the proposed valuation or legal classification to the department as provided by section 42-11056. C. The county assessor shall make the necessary changes in the tax roll and records to reflect the county board's determination. D. The department has the right to intervene and be heard in any proceeding pursuant to this section. 42-16110. Entry of changes and completion of roll If the board of supervisors makes any changes to valuations or legal classifications ordered by the county board of equalization it shall: 1. Add up on the roll the entries of: (a) Valuation of each description of property. (b) Valuation of each class of property, as valued. (c) Total valuations. 2. Enter all totals on the roll. 42-16111. Appeal from county board of equalization A. A property owner who is dissatisfied with the valuation or classification of the property as fixed by the county board, or a petitioner whose petition under this article is denied, in whole or in part, may appeal directly to court as provided by section 42-16202. B. If the county board orders the valuation of any property to be reduced, the assessor or the department may appeal the decision to the court in the same manner as provided in subsection A of this section. 42-16151. Definition of state board In this article, unless the context otherwise requires, "state board" means the state board of equalization. 42-16152. State board of equalization The state board of equalization is established as an independent agency that is not subject to the supervision or control of the department of revenue. 42-16153. Members A. The state board of equalization consists of: 1. Ten members who are appointed by the board of supervisors of each county with a population of more than five hundred thousand persons according to the most recent United States decennial census. 2. Ten members who are appointed by the governor from each county with a population of more than five hundred thousand persons according to the most recent United States decennial census. 3. An additional member who is appointed by the governor, who is designated as chairman and who serves in a full-time capacity. B. Other than the chairman, members of the state board of equalization shall be selected on the basis of their work experience and other qualifications in at least one of the following categories: 1. Experience in at least three of the preceding eight years in property valuation, property tax appeals or appraising real property. 2. A certified general appraiser under section 32-3612. 3. A property valuation hearing officer or member of the state board of equalization, or any predecessor to the board, for at least three of the preceding eight years. 4. A member of the state bar of Arizona with at least three years of experience in property valuation or condemnation practice. 5. Experience in at least three of the preceding eight years as a real estate broker. C. Members who are appointed by the county board of supervisors serve at the pleasure of the county board for terms that expire at the same time as the elective term of the county supervisors. Members who are appointed by the governor serve a term of five years. Members may be reappointed. D. Except as provided in section 42-16154, subsection A, members of the state board are eligible to receive: 1. Not more than three hundred dollars per day for time spent in performing official duties, prorated for partial days spent on official duty. 2. Reimbursement for travel and other expenses as provided by law for other state officers. E. Members who are appointed by a county shall be paid by the county. Members who are appointed by the governor shall be paid by the state. F. A member of the state board of equalization shall not: 1. Hold any other public office under the laws of this state or a political subdivision of this state except a position on a board or commission that does not regularly interact with the state board of equalization. 2. Be a candidate for an elective office under the laws of this or any other state. 3. Hold any position of trust nor provide or engage in any occupation or business that would conflict with the duties of a member of the board. 4. Other than the chairman, have been employed by a county assessor or county attorney or by the department of revenue or the department of law within two years before appointment. G. The governor may remove any member of the state board who was not appointed by a county board of supervisors for any of the following reasons: 1. Cause. 2. Failure to carry out the duties and responsibilities of the position. 3. Failure to follow the rules of the board. 4. Failure to follow the directions of the chairman as provided by law. 42-16154. Chairman; administration; meetings A. The governor shall appoint the chairman of the state board who is responsible for the administration and operation of the board. The position of chairman is a full-time position. The chairman is eligible to receive compensation pursuant to section 38-611. B. The state board shall meet at the call of the chairman as often as necessary to accomplish the duties prescribed by law and may hold meetings or hearings at any location in the counties that appoint members to the board. Members of the state board shall act under the direction of the chairman in carrying out their duties and responsibilities as provided by law and the rules of the board. C. The members of the state board shall adopt administrative rules and rules of procedure for hearings before the board. The state board of equalization may adopt by reference judicial rules and rules of the state board of tax appeals to the extent that they apply to the proceedings of the state board of equalization. All hearings that are conducted before the state board, either by the board or a panel, a member or a hearing officer of the board, shall be conducted according to the rules. 42-16155. Hearing officers and employees A. Subject to title 41, chapter 4, article 4, the state board of equalization may employ one or more hearing officers who must meet the same qualifications prescribed for the members of the board by section 42-16153. B. Any training activity for hearing officers shall be held in public with notice as prescribed by title 38, chapter 3, article 3.1. C. A hearing officer is eligible to receive up to three hundred dollars per day for time spent in performing official duties. D. Subject to title 41, chapter 4, article 4, the state board may appoint a chief clerk and any other employees that it considers to be necessary to carry out its duties. 42-16156. Case assignment A. The chairman or chief clerk of the state board shall assign tax cases on a random basis to members of the board to be heard as provided by this article. This subsection does not prevent the chairman or chief clerk from taking into account in assigning tax cases the availability of members, real or potential conflicts of interest of members or the convenience of petitioners or their representatives who file multiple petitions. B. The chairman or chief clerk shall assign each case involving: 1. Appeals of property valuations that are determined by the department and equalization orders that are issued pursuant to statute to members of the board who are appointed by the governor. This paragraph does not apply to any properties that are valued by the department but would otherwise be valued by the county assessor. 2. Property listed as class three pursuant to section 42-12003 or property valued by the assessor at three million dollars or less to be heard by at least one member of the board or by a hearing officer who shall be from the county in which the property is located. 3. Any other property to a panel of either three or five members of the board, at least two of whom shall be from the county in which the property is located unless the chairman is sitting as a representative of that county. The chairman of the board shall designate a member to act as chairman of each panel. When possible, at the chairman's discretion, on any panel: (a) Of three members, no more than one member may have been employed by a county assessor or county attorney or by the department of revenue or the department of law within four years. (b) Of five members, no more than two members may have been employed by a county assessor or county attorney or by the department of revenue or the department of law within four years. C. The chairman may sit on any case as a hearing officer representing any county. 42-16157. Appeal of valuation or legal classification from county assessor to state board of equalization A. Except as provided in subsection C or D of this section, if the county assessor denies all or part of a petition under section 42-16055, and if a county board of equalization is not established in the county where the property is located, the petitioner may appeal the assessor's decision to the state board of equalization by filing with the state board, within twenty-five days after the date that the assessor's decision was mailed to the petitioner, a copy of the written basis of the decision according to the instructions on the petition. B. The department may contest any proposed valuation or classification or any proposed change in valuation or classification before the state board. If, in the director's opinion, a decision of an assessor is erroneous, the director may appeal the assessor's decision to the state board within twenty-five days after the assessor's decision was mailed to the taxpayer and the department. In such an action the taxpayer shall raise any defense the taxpayer has to liability for the tax and any additional tax sought to be imposed. If issues other than valuation or classification are raised by either party, the action shall be tried as if it were an action pursuant to section 42-11005 or 42-11052. C. A property owner who receives a notice of valuation under section 42-15105 may appeal the valuation or legal classification to the state board as provided in subsection A of this section within twenty-five days after the date of the assessor's notice. D. A property owner whose petition is denied, in whole or in part, pursuant to section 42-19051 may only appeal the valuation or legal classification to the state board as provided in subsection A of this section within twenty days after the date of the assessor's notice of refusal or decision. E. The state board may contract with any county with a population of less than five hundred thousand persons according to the most recent United States decennial census to review and hold hearings and make decisions on petitions filed under section 42-16105. These hearings shall be conducted in the county in which the property of the subject hearings is located. 42-16158. Appeal of valuation or legal classification from department to state board of equalization A. A property owner who is not satisfied with the valuation or legal classification of the property as determined by the department may appeal to the state board by filing a petition with the state board that is postmarked on or before October 1 or within fifteen days after the department mails its decision to the property owner, whichever date is later. The state board shall prescribe the form of and procedure for filing the petition by administrative rule. B. The state board shall notify the petitioner of the time and place of the hearing. The petitioner: 1. May appear before the state board at such time as the board may direct. 2. Is entitled to be heard at any hearing regarding the valuation or legal classification of the property. 3. Shall show cause why the valuation or legal classification should be changed. C. If the state board orders the valuation or legal classification to be changed, it shall immediately transmit a copy of the order to the property owner and to the officers of this state and the county, city or town in charge of tax assessments who shall correct the tax roll accordingly. 42-16159. Hearing on department equalization order A. At the request of a county assessor who receives an equalization order issued by the department under chapter 13, article 6 of this title, the state board shall hold a hearing and issue its decision within fifteen days after receipt of an appeal pursuant to section 42-13255. B. The state board shall receive testimony from the department and the assessor on the merits of the equalization order as to: 1. The proper application of standard appraisal methods and techniques. 2. The rules and guidelines of the department as they relate to the order. 3. Any errors in the information or methodology used by the department to determine the necessity for the order, including changes in the valuation of property that were not included in the information used by the department. 4. Any other evidence relating to the validity of the order. C. Revisions to the equalization order are effective for the valuation year in which the equalization order was issued. 42-16160. Recommendation for future equalization orders The state board at any time may recommend to the department properties that in the state board's opinion should be included in the department's next review of property under chapter 13, article 6 of this title. 42-16161. Filings and hearings A. If the state board maintains an electronic filing system, a party may transmit required information to the board in a format that is compatible with the board's filing system. The board's transmitted receipt is evidence that the board acknowledges that the petitions were filed for purposes of this article. B. A person whose petition under article 2 of this chapter was denied in whole or in part and who appeals to the state board shall file with the state board: 1. A copy of the notice of the assessor's original valuation and legal classification. 2. A copy of the written basis of the assessor's subsequent decision on the petition. C. Each hearing shall be held in the county in which the property is located. With the permission of all parties, the state board may conduct telephonic hearings when appropriate. D. The hearing officer, board member or panel shall act on the petition, shall hear testimony presented in person at the hearing and may subpoena witnesses to testify regarding the petition. Unless all parties agree otherwise, each party shall submit evidence in person. E. The decision shall be based on evidence presented by the parties attending the hearing. 42-16162. Decision of the state board A. Based on the evidence presented at a hearing on an appeal, the state board shall either grant or refuse the request of the petition, in whole or in part, as the state board considers just and proper. The decision of the state board shall not exceed the assessor's noticed valuation and recommended classification. A decision by the state board does not limit a party from appealing the decision in a manner prescribed by law. The state board may increase individual parcels within an economic unit in a multiple parcel appeal when considering the equitable valuation of an economic unit not to exceed the total aggregate valuation of the multiple parcel appeal on the agreement of both parties. B. In considering any petition filed by any person, the state board shall review and consider all competent evidence relating to full cash value, including, if presented, the valuation of similar property that is similarly situated. 42-16163. Hearing notices Unless otherwise provided by law, all notices of hearings on appeals before the state board shall be mailed at least fourteen days before the hearing. 42-16164. Decisions A. The hearing officer, board member or panel shall issue its decision at the conclusion of the hearing, except that in appropriate cases, the chairman of the state board may authorize the hearing to be continued for additional deliberation. The chairman of the state board may review any decision to ensure due process to all parties. B. The board shall issue the decision in writing to each party and, in all cases, to the department by mail. 42-16165. Deadlines for issuing decisions The state board shall complete all hearings and issue all decisions under this article on or before October 15 of each year, except for: 1. Cases involving property valued by the department, in which case the decisions shall be issued on or before November 15. 2. An appeal under section 42-16157, subsection C, which shall be completed on or before the third Friday in November of the calendar year preceding the year in which the taxes are levied. 3. In the case of a personal property appeal under section 42-19052, the state board of equalization shall complete the hearing and issue a decision on or before December 1 of the calendar year in which the taxes are levied. 42-16166. Transmitting changes in valuations or legal classifications On or before the fourth Friday in November of each year the state board shall transmit to: 1. The assessor of each county a statement of changes, if any, that it has made in the valuation or legal classification of any property in the county that is valued by the county assessor. 2. The department a statement of changes, if any, that it has made in the valuation or legal classification of: (a) Any property that is valued by the department. (b) Property of taxpayers who pay their taxes to the department, except that in the case of private car companies, the statement shall be transmitted on or before October 31. 42-16167. Entry of changes and completion of roll If the board of supervisors makes any changes to valuations ordered by the state board of equalization it shall: 1. Add up on the roll the entries of: (a) Valuation of each description of property. (b) Valuation of each class of property, as valued. (c) Total valuations. 2. Enter all totals on the roll. 42-16168. Appeal to court A. Any party, or the department, that is dissatisfied with the valuation or classification of property reviewed by the state board may appeal to court as provided by section 42-16203. B. Appeals from all other orders and decisions of the state board shall be as provided by law. 42-16169. Finality of decision Any decision of the state board of equalization pertaining to the valuation or classification of property is final when an appeal has not been taken within the time prescribed by section 42-16203. No person may plead such a decision in any proceeding as a bar to raising any valuation or classification issue relating to any other year. 42-16201. Appeal from county assessor to court A. A property owner who is dissatisfied with the valuation or classification of the property as determined by the county assessor may appeal directly to the court as provided by this article on or before December 15 regardless of whether the person has exhausted the administrative remedies under this chapter, except as provided in subsection B of this section. B. A person who files a petition with the county assessor pursuant to section 42-16051 may file an appeal with the court within sixty days after the date of mailing the most recent administrative decision relating to the petition or subsequent administrative appeal. C. Filing an appeal with the court suspends and renders subject to dismissal any pending administrative proceeding filed by the taxpayer relating to any issue that is or may be determined by the court under a pending appeal. 42-16202. Appeal from county board of equalization to court A. A property owner who is dissatisfied with the valuation or classification of the property as determined by a county board of equalization or a petitioner whose petition is denied by the county board of equalization, in whole or in part, may appeal directly to court within sixty days after the date of mailing of the decision, or by December 15, whichever is later. B. If the county board orders the valuation of any property to be reduced, the assessor or the department may appeal the decision to court in the same manner as provided by subsection A. 42-16203. Appeal from state board of equalization to court A. Any party, or the department, that is dissatisfied with the valuation or classification of property reviewed by the state board of equalization may appeal to court as provided by this article. B. The department or a county assessor who is dissatisfied with the determination by the state board of an equalization order under section 42-16159 may appeal to the court as provided by this article. C. An appeal to court shall be taken within sixty days after the date of mailing of the state board's final decision. D. Appeals resulting from a change in value due to correcting a property tax error pursuant to article 6 of this chapter shall be filed within sixty days after the date of mailing of the state board's decision. 42-16204. Appeal from department to court A property owner who is not satisfied with the valuation or legal classification of the property as determined by the department may appeal directly to superior court as provided by this article on or before December 15. 42-16205. Appeal to court in the case of new construction, changes to assessment parcels and changes in use An appeal to court from the state board of equalization or a county board of equalization relating to changes in assessments under section 42-15105 due to new construction, additions to or deletions from assessment parcels or changes in property use that occur after September 30 of the preceding year and before October 1 of the valuation year shall be filed within sixty days after the date of mailing of the decision. 42-16205.01. New owner of property; review and appeal A. If a former owner of property did not have a pending court appeal or receive final judgment or dismissal in court regarding the appeal of the valuation or legal classification, both of the following apply to the new owner of property: 1. A new owner of property that was valued by the assessor and that changed ownership before December 15 of the valuation year may appeal the valuation or legal classification to court on or before December 15 of the valuation year. 2. If the change of ownership occurs after December 15 of the valuation year, the new owner may appeal to tax court by December 15 of the year in which the taxes are levied. B. A new owner may intervene, assume, consolidate, maintain or continue the former owner's position in any pending petition for review or tax appeal under this article for the tax years in which the new owner owns the property. C. This section does not limit the new owner's right to file in tax court under subsection A or B of this section. 42-16206. Appeal to court by the director A. If, in the director's opinion, a decision by a county board of equalization or the state board of equalization is erroneous, the director may appeal the decision to superior court in the manner provided by this article on or before the final date that a taxpayer may file an appeal from the valuation or classification of property. B. In such an action the taxpayer shall raise any defense that the taxpayer has to liability for the tax and any additional tax sought to be imposed. C. If issues other than valuation or classification are raised by either party, the action shall be tried as if it were an action pursuant to section 42-11005 or 42-11052. 42-16207. Commencement of appeal; notice A. A court appeal relating to valuation or classification of property is commenced by filing a notice of appeal with either the tax court or the superior court pursuant to section 12-163, subsection B. B. The notice of appeal shall contain a statement of the reasons why the valuation or classification is excessive or erroneous. C. If the department or the county requests an increase in full cash value, the response filed shall contain a statement of the reasons why the valuation or classification is insufficient or erroneous. 42-16208. Parties to the appeal; right of intervention A. Except as provided in subsection B, the appellant shall name as defendants: 1. In an appeal by the taxpayer involving property that is valued by the department, both the department and either this state or the county in which the property is located, whichever collects the tax. 2. In an appeal by the taxpayer involving property that is valued and assessed by a county, the county. The county is responsible for defending all defendants named in the appeal unless, in the department's opinion, the appeal involves an issue of statewide importance, in which case the department and the attorney general's office are responsible for defending on the issue of statewide importance. The department may periodically advise the county of issues that the department considers to be of statewide importance. The county shall inform the department if any of these issues arise at any time during an appeal. 3. In an appeal by the department, the taxpayer. 4. In an appeal by a county or county assessor, the taxpayer. The department may periodically advise the county of issues that the department considers to be of statewide importance. The county shall inform the department if any of these issues arise at any time during an appeal. B. In an appeal of a decision by the state board of equalization reviewing equalization orders, the appellant shall name as defendants: 1. In an appeal by a taxpayer, the department and the county in which the property is located. 2. In an appeal by the department, both the county in which the property is located and the taxpayer who appealed the equalization order to the board. 3. In an appeal by the county or county assessor, the taxpayer and the department. C. The department or the county in which the property is located has the right to intervene in any appeal in which it is not named as a party pursuant to rule 24(a), Arizona rules of civil procedure. 42-16209. Service on defendants A. A copy of the notice of appeal shall be served on the defendant or defendants within ten days after filing in the manner provided for service of process in the rules of civil procedure or by certified mail. B. In an appeal taken by the county or the department, service shall be on the person in whose name the property is listed at the address shown on the current tax roll within ten days after filing. C. An affidavit showing service shall be filed with the clerk of the court. 42-16210. Payment of tax A. All taxes levied and assessed against property for the year on which an appeal has been filed by the property owner shall be paid before they become delinquent. B. If the taxes are not paid before becoming delinquent, the court shall dismiss the appeal except when either of the following occur: 1. The full year tax for the year is paid on or before December 31 of the tax year pursuant to section 42-18053. 2. The remaining one-half tax that is unpaid is delinquent after the immediately following May 1 at 5:00 p.m. is paid by July 1, including all interest due. 42-16211. Payment of fees Any taxpayer who appeals to court shall pay the filing and appearance fees prescribed by section 12-167 to the clerk of the court. 42-16212. Hearing A. If two or more actions have been filed under this article for the same taxable year with respect to the same property, the actions shall be consolidated for the purpose of the hearing. B. At the hearing both parties may present evidence of any matters that relate to the classification or to the full cash value of the property in question as of the date of its assessment. The valuation or classification as approved by the appropriate state or county authority is presumed to be correct and lawful. C. For appeals from the state board relating to equalization orders issued by the department, the court shall hear the appeal and render its decision by September 1 of the year in which the appeal is filed. 42-16213. Findings and judgment A. If the court finds that the valuation is excessive or insufficient, the court shall find the property's full cash value. The court may find a full cash value that is higher or lower than the full cash value that was appealed regardless of which party filed the appeal, except as follows: 1. If the appeal is taken by a county assessor and the court finds that the valuation is insufficient, the court's finding of the real property's full cash value shall be not greater than the full cash value that was appealed by the taxpayer to the board of equalization. 2. Paragraph 1 of this subsection does not apply if the valuation of the property for the tax year was set pursuant to section 42-16002, subsection B. B. If the court finds that the valuation is: 1. Excessive, the court shall render judgment for the taxpayer and against the state or county, whichever is appropriate, in an amount equal to the excess in taxes levied and assessed together with the costs of the appeal. 2. Correct, the court shall dismiss the action with costs against the plaintiff except in appeals taken pursuant to section 42-16206. 3. Insufficient, the judgment, consistent with subsection A of this section, shall be for the state or county, whichever is appropriate, and against the taxpayer for the costs of the appeal and any taxes due on the property in excess of the amount originally levied and assessed. The judgment is a lien on the appellant's real and personal property as though the assessment had originally been in the amount of the judgment. C. If the court finds that the classification is in error, the court shall determine the correct classification. The taxes due on the property shall be determined using the classification determined by the court regardless of whether the department filed an appeal pursuant to section 42-16206. 42-16214. Refund or credit of excess payments A. If judgment is awarded to a taxpayer who paid the taxes to the county treasurer: 1. The county treasurer of the county in which the property is located shall pay the judgment out of monies collected from property taxes during the next fiscal year, unless there are sufficient amounts available in funds budgeted for that purpose by the county to allow an immediate refund, or, if both parties agree, the amount of the judgment may be credited toward any taxes that may be remaining due on the property that is the subject of the appeal, subject in either case to the approval of the board of supervisors. 2. The amount of the judgment shall be subtracted from the amounts due to taxing jurisdictions in the next fiscal year in proportion to the amount each received from the appellant's overpayment of taxes. The affected taxing jurisdictions shall include in their budgets for the next fiscal year the proportional amount of the judgment for which each is liable. Any increase in the budget because of the portion of the judgment being included is not subject to any budget limitation that may be prescribed by law. 3. Interest at the legal rate on the overpayment or underpayment is payable from the date of overpayment or underpayment. For the purpose of computing interest under the judgment, if the tax was paid in installments, a pro rata share of the total overpayment or underpayment is considered to be attributable to each installment. For the purposes of this paragraph, "legal rate" means the rate set by the department as prescribed by section 42-1123. B. A judgment in favor of an appellant who paid the taxes to the department shall be paid from the state general fund. 42-16215. Transmitting judgment to county or department; correcting tax rolls A. The clerk of the court shall transmit the judgment to the clerk of the board of supervisors or to the department, whichever is appropriate, and to the county treasurer. B. Unless an appeal is taken according to the rules of civil procedure, the board of supervisors, county assessor, county treasurer or department, whichever is appropriate, shall correct the rolls within fifteen days according to the judgment. C. The full cash value found by the court shall be entered on the tax roll and shall be used to determine the taxes due on the property. 42-16251. Definitions In this article, unless the context otherwise requires: 1. "Board" means the county board of equalization or the state board of equalization, as appropriate. 2. "Court" means either the superior court or tax court. 3. "Error" means any mistake in assessing or collecting property taxes resulting from: (a) An imposition of an incorrect, erroneous or illegal tax rate that resulted in assessing or collecting excessive taxes. (b) An incorrect designation or description of the use or occupancy of property or its classification pursuant to chapter 12, article 1 of this title. (c) Applying the incorrect assessment ratio percentages prescribed by chapter 15, article 1 of this title. (d) Misreporting or failing to report property if a statutory duty exists to report the property. (e) Subject to the requirements of section 42-16255, subsection B, a valuation or legal classification that is based on an error that is exclusively factual in nature or due to a specific legal restriction that affects the subject property and that is objectively verifiable without the exercise of discretion, opinion or judgment and that is demonstrated by clear and convincing evidence, such as: (i) A mistake in the description of the size, use or ownership of land, improvements or personal property. (ii) Clerical or typographical errors in reporting or entering data that was used directly to establish valuation. (iii) A failure to timely capture on the tax roll a change in value or legal classification caused by new construction, the destruction or demolition of improvements, the splitting of one parcel of real property into two or more new parcels or the consolidating of two or more parcels of real property into one new parcel existing on the valuation date. (iv) The existence or nonexistence of the property on the valuation date. (v) Property that is destroyed after the lien date. (vi) Any other objectively verifiable error that does not require the exercise of discretion, opinion or judgment. Error does not include a correction that results from a change in the law as a result of a final nonappealable ruling by a court of competent jurisdiction in a case that does not involve the property for which a correction is claimed. 4. "Tax officer" means the department, county assessor or county treasurer, as applicable. 5. "Taxpayer" means the owner of real or personal property that is liable for tax. 42-16252. Notice of proposed correction; response; petition for review; appeal; electronic communication A. Subject to the limitations and conditions prescribed by this article, if a tax officer determines that any real or personal property has been assessed improperly as a result of a property tax error, the tax officer shall send the taxpayer a notice of proposed correction at the taxpayer's last known address by: 1. Certified mail, return receipt requested, if correction of the error results in an increase in the full cash value or change in legal classification of the property. 2. First class mail or, at the taxpayer's written request, delivery by common carrier or electronic transmittal, if correction of the error does not result in an increase in the valuation of the property. B. The notice shall: 1. Be in a form prescribed by the department. 2. Clearly identify the subject property by tax parcel number or tax roll number and the year or years for which the correction is proposed. 3. Explain the error, the reasons for the error and the proposed correction of the error. 4. Inform the taxpayer of the procedure and deadlines for appealing all or part of the proposed determination before the tax roll is corrected. C. Within thirty days after receiving a notice of proposed correction, the taxpayer may file a written response to the tax officer that sent the notice to either consent to or dispute the proposed correction of the error and to state the grounds for disputing the correction. A failure to file a written response within thirty days constitutes consent to the proposed correction. A taxpayer may file a request for an extension of time within thirty days after receiving the notice of proposed correction. The extension of time may not exceed thirty days. If an extension is granted, any response that is not filed within the extended due date constitutes consent to the proposed correction. D. The taxpayer may appeal any valuation or legal classification issue that arises from the proposed correction as provided in this section. E. If the taxpayer consents to the proposed correction, or consents to the proposed correction but disputes the proposed valuation or legal classification as provided on the form prescribed by the department, the tax roll shall be promptly corrected to allow property taxes to be levied and collected in all subsequent tax years, but no additional tax, interest or penalty may be imposed for the current tax year or any tax year preceding the date of the notice of proposed correction. F. If the taxpayer disputes the proposed correction or the proposed valuation or legal classification, the tax officer shall meet with the taxpayer or the taxpayer's representative in any case in which the taxpayer has timely filed a written response to discuss the proposed correction. If after the meeting the tax officer and the taxpayer reach an agreement on all or part of the proposed correction, the tax officer and the taxpayer shall each sign an agreement and the tax roll must be promptly corrected to the extent agreed on. G. If after the meeting the parties fail to agree on all or part of the proposed correction, the tax officer shall serve a notice on the taxpayer by certified mail within thirty days after the meeting date advising the taxpayer that the tax roll will be corrected to the extent agreed on. The taxpayer may file a petition on a form prescribed by the department with the board of equalization within thirty days after the date of the notice or it is barred. On receiving the petition, the board shall hold a hearing on the disputed issues in the proposed correction within thirty days and shall issue a written decision pursuant to the board's rules. H. A party that is dissatisfied with the decision of the board may appeal the decision to court within sixty days after the date the board's decision is mailed, but any additional taxes that are determined to be due must be timely paid before delinquency for the court to retain jurisdiction of the matter. I. The tax officer may accept an electronic response to a notice of proposed correction from a taxpayer. If the taxpayer elects to submit the response electronically, the tax officer shall provide an acknowledgment or response of receipt to the taxpayer and may provide related communications electronically, except for any notice that is required to be served by certified mail pursuant to subsection G of this section. The time limits and procedural requirements that apply to written communications under this section apply to electronic communications allowed under this subsection. 42-16253. Reporting personal property tax error before notice of proposed correction is issued If a taxpayer whose personal property taxes have been assessed in error reports the error to the taxing authority before receiving a notice of proposed correction, no penalty may be applied and the tax roll shall be corrected to allow property taxes for the period affected by the error to be levied and collected. 42-16254. Notice of claim; response; petition for review; appeal; electronic communication A. If a taxpayer believes that the taxpayer's property has been assessed improperly as a result of a property tax error, the taxpayer shall file a notice of claim with the appropriate tax officer, either personally, electronically or by certified mail, as follows: 1. If the alleged error concerns the valuation or classification of property by the county assessor, the notice shall be filed with the assessor. On receiving the notice, the assessor shall immediately transmit a copy to the department. 2. If the alleged error concerns the valuation or classification of property by the department, the notice shall be filed with the department. 3. If the alleged error concerns the imposition of any tax rate, the notice shall be filed with the county board of supervisors. The clerk of the board of supervisors shall notify each affected taxing entity to allow the entity to file a response to the claim. B. The notice shall: 1. Be in a form prescribed by the department. 2. Clearly identify the subject property by tax parcel number or tax roll number and the year or years for which the correction is proposed. 3. State the claim and the evidence to support the claim for correcting the alleged error. C. Within sixty days after receiving a notice of claim, the tax officer may file a written response to the taxpayer to either consent to or dispute the error and to state the grounds for disputing the error. A failure to file a written response within sixty days constitutes consent to the error, and the board of supervisors shall direct the county treasurer to correct the tax roll on the taxpayer's written demand supported by proof of the date of the notice of claim and the tax officer's failure to timely dispute the error. D. If the tax officer disputes the error, the tax officer shall notify the taxpayer of a time and place for a meeting between a representative of the tax officer and the taxpayer or the taxpayer's representative within sixty days to discuss the basis for the dispute. E. If, after the meeting, the parties agree on all or part of the notice of claim, the tax roll must be corrected promptly to the extent agreed on and any taxes that have been overpaid shall be refunded pursuant to section 42-16259. F. If the parties fail to agree on all or part of the notice of claim, the taxpayer may file a petition with the board of equalization on a form prescribed by the department and shall send a copy to the tax officer by certified mail. The petition must be filed with the board within ninety days after the date of the meeting or it is barred. On receiving the petition, the board shall hold a hearing on the disputed issues in the notice of claim within thirty days and shall issue a written decision pursuant to the board's rules. G. A party that is dissatisfied with the decision of the board may appeal the decision to court within sixty days after the date the board's decision is mailed, but any additional taxes that are determined to be due must be timely paid before delinquency for the court to retain jurisdiction of the matter. In addition, in order for a taxpayer to recover a refund for taxes paid in a preceding tax year as a result of an error, all taxes that were levied and assessed against the property for the tax year must be paid before delinquency in order for the court to retain jurisdiction of the matter. H. The tax officer may accept an electronic notice of claim from a taxpayer. If the taxpayer elects to submit the notice of claim electronically, the tax officer shall provide an acknowledgment or response of receipt to the taxpayer and may provide related communications electronically, except for any communication that is required to be served by certified mail pursuant to subsection F of this section. The time limits and procedural requirements that apply to written communications under this section apply to electronic communications allowed under this subsection. 42-16255. Evidence that may be considered at hearings; pending administrative and judicial appeals A. In any hearing before the county board, state board or court in an appeal under this article, either party may present any evidence regarding property tax errors regardless of whether the evidence was presented when the notice of proposed correction or notice of claim was filed. The board or court has jurisdiction to make any such correction. B. If an administrative or judicial appeal is pending regarding the subject property, any alleged error that was already the subject of a notice of proposed correction under section 42-16252 or a notice of claim under section 42-16254 shall be adjudicated as part of the administrative or judicial appeal for the affected tax year without requiring the parties to exhaust their administrative appeal remedies under this article. If a specific error of fact, not previously known, was not addressed in a prior appeal, an appeal may be brought pursuant to this section. 42-16256. Limitations A. In the case of real or personal property, the correction of errors under this article is limited to the period during which the current owner of record held title to the property, if the owner is a purchaser in good faith and without notice of any error that could have caused proceedings to b