Lake Havasu Cit's property tax rate will decrease from last year to $.6731 per 100 of assessed value.
Lake Havasu city real property is assessed once a year, the value is determined by the assessor. The price a property sells for has little or no effect upon the actual assessed value.
For additional information and up-dated information please view the Mohave County assessor web site:
http://www.co.mohave.az.us/depts/assessor/prop_info.asp
Listed Price $749,000 Yearly Property Tax $1,290.36 (2007)
Listed Price $998,000 Yearly Property Tax $2,574.66 (2007)
NOTICE OF TAX EXEMPTION LAWS IN ARIZONA
Arizona Statute (ARS 42-11111) provides for some exemption from property taxes for qualifying widowed persons and for fully disabled persons.
First-time applicants must apply in person between the first Monday in January and March 1. Qualifications for an exemption in 2007 include:
- You must be a current resident of Arizona.
- The assessed value of all property owned in Arizona cannot exceed $21,628 (This can be equivalent to a $216,280 home.)
- Household income from all sources, cannot exceed $26,523 or $31,827 if children under 18 years of age reside with the applicant. (Social Security and some other incomes are not included.)
- Applicants seeking a disability exemption must provide proof of 100% total and permanent disability from their physician on an Arizona Department of Revenue prescribed form. This form is available online or from your local Assessor’s Office (Kingman, Bullhead City, Lake Havasu City).
- Widows or widowers must have been a resident with their spouse at the time of spouse’s death or claimant must have established Arizona residency prior to January 1, 1969.
Tax savings can range from approximately $300.00 to $400.00. If the amount of exemption exceeds the assessed value of property owned, a small percentage of the remainder of the exemption can also be applied to vehicle license tax.
For disability exemptions, you may use this form. Take the form to your doctor to fill out and bring it with you to apply in person for your exemption. This form is not needed for Widow/Widower Exemptions. Download Medical Form
FREEZING CURRENT HOME VALUE
Per Article 9, Section 18, Paragraph 7, Arizona law now provides for “freezing” the current value of homes owned and occupied by seniors for future years. It is important to know that the VALUATION for your home will be frozen as long as the owner remains eligible. TAXES WILL NOT BE FROZEN and will continue to be levied at the same rate as all other properties in the taxing district.
The requirements follow:
- Every owner on title must fill out an application. At least one of the owners must be 65 years of age at the time the application is filed. A copy of proof of age must be submitted.
- The property must be the primary residence of the taxpayer. On this application “Primary Residence” is defined as the residence which is occupied by the taxpayer for nine (9) months of the calendar year.
- The owner must have resided in this primary residence for at least two (2) years prior to applying for the option.
- All owners’ combined total income from all sources, including non-taxable income, cannot exceed the specified amount in the amendment. For 2007, this is $29,904 for a single owner, and $37,380 for 2 or more owners.
Important: September 1st is the deadline to lock current year values. You can compare your current and future values to help you decide which year to lock.
If the owners meet all of these requirements, when the County Assessor approves the application, the full cash value of the primary residence will stay the same for a three (3) year period. To remain eligible, the owner is required to renew the option in 2-1/2 years. The County Assessor will send a notice of re-application.
The freeze terminates and the property reverts to its current full cash value if the owner sells the home or if the property is no longer your primary residence. The locked value will be removed and you must reapply if: 1) exterior alterations/additions are made to your property; or 2) in cases of multiple ownership, upon the death of one of the owners.
Note: To apply, complete the application, attach proof of age e.g. copy of birth certificate, driver’s license, or any other supporting documentation, sign and return the application to the Assessor’s office
I have a mortgage for my primary residence and a second mortgage for land that I intend to build a home on. Can the interest be deducted for the second mortgage?
Unless you have begun construction of a home on the bare land that you can occupy within 24 months, the land would be considered an investment and the interest you paid on the second mortgage would not qualify as deductible mortgage interest. However, it would constitute investment interest if you itemize your deductions.
Is the mortgage interest and property tax on a second residence deductible?
The mortgage interest on a second home which you use as a residence for some portion of the taxable year, is generally deductible if the interest satisfies the same requirements for deductibility as interest on a primary residence. Real estate taxes paid on your primary and second residence are, generally, deductible. Deductible real estate taxes include any state, local, or foreign taxes on real property levied for the general public welfare. Deductible real estate taxes do not include taxes charged for local benefits and improvements that increase the value of the property.
If I take the exclusion of capital gain tax on the sale of my old home this year, can I also take the exclusion again if I sell my new home in the future?
You cannot exclude gain on the sale of your home if, during the 2-year period ending on the date of the sale, you sold another home at a gain and excluded all or part of that gain. If you cannot exclude the gain, you must include it in your income.
Exception. You still can claim an exclusion, but the maximum amount of gain you can exclude will be reduced, if the reason you sold the home was:
- A change in place of employment
- Health, or
- Unforeseen circumstances (as defined earlier)
With the exception of the 2-year waiting period, there is no limit on the number of times you can exclude the gain on the sale of your principal residence so long as you meet the ownership and use tests.
I lived in a home as my principal residence for the first 2 of the last 5 years. For the last 3 years, the home was a rental property before selling it. Can I still avoid the capital gains tax and, if so, how should I deal with the depreciation I took while it was rented out?
If, during the 5-year period ending on the date of sale, you owned the home for at least 2 years and lived in it as your main home for at least 2 years, you can exclude up to the maximum dollar limit. However, you cannot exclude the portion of the gain equal to depreciation allowed or allowable for periods after May 6, 1997.
Is the loss on the sale of your home deductible?
The loss on the sale of a personal residence is a nondeductible personal loss.
THIS IS GENERAL INFORMATION - SEEK THE ADVICE OF A TAX PROFESSIONAL BEFORE YOU DO ANYTHING.
