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Arizona Senior Homeowners Tax Relief

Are you a senior qualifying for a Homeowners Tax Freeze in Arizona?

At least 12 states authorize some form of property tax freeze for senior homeowners. The states are Arizona, Arkansas, Georgia, Illinois, Louisiana, New Jersey, New Mexico, Oklahoma, Rhode Island, South Dakota, Texas, and Washington State. Five also extend the freeze to taxpayers with disabilities, regardless of age. As a senior in Arizona, you may be eligible for a Tax Freeze on the taxable market value of your home. This includes Phoenix’s active adult communities, as well as, homes outside of those communities. The intent is to help low-income seniors. Let’s explore Arizona senior homeowner’s tax relief in more detail below.

What is Arizona senior property tax relief?

The official name of the program is called The Senior Valuation Protection Option. It freezes the property valuation of residential homeowners who are 65 or older as of January 1st. The property valuation includes the residence and land up to 10 acres. It does not freeze your taxes just the property value. You must apply and qualify with the county. September 1st of every year is the deadline.

How do you qualify?

To qualify you must meet certain criteria:
1.  Property owner (applicant) must be 65 years of age or older.
2.  The property must be the primary residence of the property owner and must have lived there for at least 2 years.
3.  The property owner’s name must be on the title.

Currently, in Maricopa County, the property owner(s) total income including taxable and nontaxable income must be under $35,184 for a single owner and $43,982 for 2 or more owners. The last 3 years taxes are averaged together. Check your county for specifics on income requirements and updates on the program as the total income does get revised.

How do you apply for Arizona Senior Homeowners Tax Relief?

The application deadline for filing is September 1. You can download the application from the Assessor’s Office for from this link, Form DOR 82104. In many of the active adult communities, there are local resources to help you file. Sun City West, for example, has a county assessor representative available within the community at PORA a few days a week to assist residents with filing. Check with your active adult community or city for local help filing as you must get the form from the county assessors office where your property is located.

Include with your application:
1. Proof of age
2. Proof of residency
3. Proof of all income

Applications that are submitted are reviewed and property owners are notified of their qualification status by December 1st of the qualifying year. The valuation is good for 3 years and can be renewed at the end of that time frame by re-applying. The freeze is for the application year and the following 2 years.

Arizona Senior Homeowners Tax Relief
Arizona Senior Homeowners Tax Relief

How do you lose your qualifying status?

Changes in ownership, income, or residency status may invalidate The Senior Valuation Protection Option. New construction will be added to your property valuation and is taxable. In Arizona, there is also an exemption for widows, widowers, and totally disabled persons. For qualified people, the exemption has the effect of reducing the assessed value of the real property by up to $3,000 with a corresponding reduction in property tax. Second, there is a program of tax deferral. Under the deferral program, payment of property taxes is not required until the real property is sold or the person dies or the property becomes income producing. Third, under Proposition 104, which passed in 2000, qualified individuals are granted a property tax freeze. If you think you might qualify for the senior tax freeze in Arizona don’t forget to apply before the Sept 1st deadline. And, if you are considering retiring in one of the other states that offer a tax freeze to seniors be sure to do your research to see what it entails if you qualify.

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