Agency Contact Information
Authority
The State Board of Equalization, originally created in 1912, assumed the responsibilities of the Territorial Board of Equalization. In 1967, the State Board of Property Tax Appeals raeplaced the State Board of Equalization. In 1994, the State Board of Equalization was reestablished as an independent entity.
Current statutory authority is found at A.R.S. §§42-16151 through 42-16169.
Function
County assessors are required to send out a Notice of Value each year stating the full cash value and limited cash value for an owner’s property. A property owner who disagrees with the valuation may appeal to either the county board of equalization or the State Board of Equalization, depending on where the property is located. The property owner must show cause why the valuation should be changed.
The State Board of Equalization (Board) hears administrative appeals of property tax valuations in large counties (having a population of more than 500,000 persons). Statute delineates the powers and duties of the Board and also outlines assignment of tax cases and hearings; appeals of valuation or classification; decisions of the Board; notification requirements regarding changes of valuation or classification made by the Board; and appeals of Board decisions.
The Board consists of 41 members. Twenty are appointed by the Governor, ten are appointed by the Maricopa County Board of Supervisors and ten are appointed by the Pima County Board of Supervisors. An additional member, appointed by the Governor, is designated as chairman. The chairman is responsible for administration and operation of the board. The position is a full-time, compensated position.
History
Laws 1912, Chapter 23 created the State Tax Commission, comprised of three members appointed by the Governor, “to have and exercise general supervision of the system of taxation throughout the State”. Subsequent members of the State Tax Commission were elected. The Commission was authorized to exercise general supervision over assessors and county boards of equalization “…to the end that all assessments of property…be made relatively just and uniform, and at its full cash value…so that equality of taxation shall be secured according to the provisions of the law.”
Laws 1912, Chapter 31created the State Board of Equalization, consisting of the state auditor, the chairman of the Corporation Commission, and the members of the State Tax Commission, who served as ex-officio members. The Secretary of the Tax Commission served as the Secretary of the State Board of Equalization.
The Board’s powers and duties included the responsibility to examine assessments and equalize the rate of assessment throughout the state. The Board was required to determine whether the valuation of property in each county bore a fair relation to the valuation in all other counties, and was authorized to modify the valuation in order to produce a just relation between all the valuations in the state.
The measure also stated the Board of Equalization established in 1912 would take the place of and become successor in office to the present Board of Equalization named in the State Constitution, assuming all power and authority vested in the Territorial Board of Equalization. The measure repealed the Territorial Board of Equalization (Revised Statutes of Arizona, Chapter IV, Title LXII) and transferred all records, documents and equipment to the State Board.
Laws 1913, Third Special Session, Chapter 71 further described the powers and duties of the State Board of Equalization. These provisions were codified in the 1913 Civil Code at §§4834, et seq. which set the valuation and assessment of property in the state. The State Tax Commission investigated complaints and determined if the current system was unequal or oppressive (Civil Code, 1913 §§4820 et seq.).
Laws 1967, Chapter 107 repealed the State Board of Equalization, and established the State Board of Property Tax Appeals, with the power to “equalize the valuation of all property throughout the state.” This Board was independent of the State Tax Commission and the State Department of Property Valuation.
Laws 1973, Chapter 123 established the Department of Revenue and gave it the powers and duties of the Department of Property Valuation, Estate Tax Commissioner, and some powers of the State Tax Commission. The measure also repealed the State Board of Property Tax Appeals and established State Board of Tax Appeals as an independent agency, separate from the Department of Revenue and the State Tax Commission. The State Board of Tax Appeals assumed the functions of the State Board of Property Tax Appeals and served as an appellate board for other taxes. Additionally, the State Board of Tax Appeals was authorized to equalize the valuation of all property in the state, and to hear and decide all appeals from decisions of the Department of Revenue.
Laws 1994, Chapter 323 reestablished the State Board of Equalization as an independent agency, not subject to supervision or control of the Department of Revenue or the State Board of Tax Appeals.
Laws 1995, Chapter 249 modified provisions related to the appeal process for county boards of equalization and the State Board of Equalization.
Laws 1997, Chapter 150 recodified the state tax code, transferred the tax appeals sections of the law to Title 42, Chapter 16, Article 4 and renumbered relevant sections, from A.R.S. §§42-172.01 et seq. to A.R.S. §§42-16151 et seq.
A second measure enacted in 1997 contained the omnibus tax code corrections in conjunction with the recodification measure of 1997. It made numerous technical, clarifying and conforming changes including several related to the property valuation appeals process. Laws 1997, Chapter 247.
Laws 2010, Chapter 80 increased the number of members on the Board, modified administrative responsibilities and created the Property Tax Appeals Study Committee. A report was due to the President of the Senate and the Speaker of the House of Representatives by December 15 of each year. The Committee was repealed on January 1, 2013.
Sources
- A.R.S.§§42-16151 et seq.
- Civil Code, 1913
- §§4820 et seq. (State Tax Commission)
- §§4834 et seq. (State Board of Equalization)
- Session Laws
- Laws 1912, Chapter 23 and Chapter 31
- Laws 1913, 3rd Special Session, Chapter 71
- Laws 1967, Chapter 107
- Laws 1973, Chapter 123
- Laws 1994, Chapter 323
- Laws 1995, Chapter 249
- Laws 1997, Chapter 150 and Chapter 274
- Laws 2010, Chapter 80
Arizona State Board of Equalization website
Related collections at Arizona State Archives
- Record Group 080 – State Tax Commission
- Record Group 084 – Territorial Board of Equalization
- Record Group 169 – Department of Revenue
- Record Group 192 – Board of Tax Appeals
- Record Group 196 – Arizona Board of Appraisal
- Record Group 225 – Arizona Board of Equalization
- Manuscript Group 78 – Arizona Tax Research Association