Glossary · Thresholds & Valuation
Full cash value
In short
The county assessor's valuation that governs the residential alteration threshold. Limited property value is not the measure.
In full
Full cash value is the figure the residential alteration threshold is measured against, and A.R.S. § 42-11001(6) defines it in two steps. It means the value determined as prescribed by statute; where no statutory method is prescribed, it is synonymous with market value, meaning the estimate of value derived annually using standard appraisal methods and techniques.
A ceiling governs both steps. Full cash value shall not be greater than market value regardless of the method prescribed to determine it. So a statutory method may produce a figure below market value but never above it.
For the residential alteration threshold, full cash value governs. A.R.S. § 42-5075(S)(1)(a) names it and does not mention limited property value at all, and ADOR Tax Policy confirmed in writing on August 13, 2026 that full cash value is the figure, directing contractors to the county assessor's website for the parcel. That response also states the test from the inclusive direction: the value of the alteration contract should be 25% or less of the parcel's full cash value. On a contract that combines alteration with other work, only the alteration charges are compared with that figure, as ADOR Tax Policy confirmed in writing on September 30, 2026.
The two valuations divide the property tax system between them. Full cash value is the basis for assessing and levying primary and secondary property taxes on the property described at A.R.S. § 42-13304; limited property value is the basis for all other property. Both appear on the same assessor record, and nothing on it says which one a contractor wants.
They are frequently different figures, and using the wrong one can place a contract on the wrong side of the threshold. Full cash value is obtained from the assessor for the county the parcel is located in.
A.R.S. § 42-11001(6); A.R.S. § 42-5075(S)(1)(a); ADOR Tax Policy information letter, 2026-08-13; ADOR Tax Policy information letter, 2026-09-30