Example of Property Tax Savings

This is a 3-part example using hypothetical dollar amounts and tax rates. The calculations shown apply to Property Tax Bills in Arizona. This example assumes a residential property having a value of $600,000 before Appeal and $500,000 after Appeal.


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Part 1 of 3: TaxDetective lowered the property valuation.

Proof 1: TaxDetective's benefit (estimated).

These are estimates of the tax rates for the Tax Year appealed. For an explanation of why estimated tax rates are used, Click Here


Before Appeal After Appeal Estimated Tax Savings
Limited Value $600,000 $500,000
Assessment Ratio 10.0% 10.0%
Assessed Value $60,000 $50,000
Primary Tax Rate 0.08297 0.08297
Primary Estimated Tax $4,978.20 $4,148.50 $829.70
Limited Value $600,000 $500,000
Assessment Ratio 10.0% 10.0%
Assessed Value $60,000 $50,000
Secondary Tax Rate 0.03025 0.03025
Secondary Estimated Tax $1,815.06 $1,512.55 $302.51
Total Property Tax $6,793.26 $5,661.05 $1,132.21
Invoice Amount $566.11

Finding 1: Owner saved an estimated $1,132.21 in property tax.


Part 2 of 3: Owner receives Property Tax Bill for Tax Year successfully appealed.

Owner notices that PropertyTax Bill says the difference in property tax savings between previous tax year and curent tax year is less than the estimated tax savings and wonders why. (As stated earlier, comparing your property taxes between last year and this year does not show TaxDetective's benefit to you.)


Proof 2. TaxDetective's actual benefit
In this example, actual tax rates for the Tax Year appealed increased by 10% over actual tax rates from the previous year.


If Valuation Had Not Been Lowered Actual Tax Rates Difference
Limited Value $600,000 $500,000
Assessment Ratio 10.0% 10.0%
Assessed Value $60,000 $50,000
Primary Tax Rate 0.091267 0.091267
Primary Property Tax $5,476.02 $4,563.35 $912.67
Full Cash Value $600,000 $500,000
Assessment Ratio 10.0% 10.0%
Assessed Value $60,000 $50,000
Secondary Tax Rate 0.03328 0.033328
Secondary Property Tax $1,996.57 $1,663.81 $332.76
Total Property Tax $7,472.59 $6,227.16 $1,245.43

Finding 2. Calculation shows that if TaxDetective had not lowered your valuation, property tax would have been $1,245.43 higher.


Part 3 of 3. For "the Record" what was Owner's actual property tax savings?

The actual property tax savings was actually greater than the estimated property tax savings.


Proof 3. Estimated versus Actual Property Tax Savings


Actual Property Tax Savings $1,245.43
Estimated Property Tax Savings $1,132.21
Difference $113.22

Finding 3. Owner's actual property tax savings was greater ($113.22) than TaxDetective's estimate.
Owner actually paid less than 50% ($56.61 less) of property tax savings to TaxDetective.


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