Glossary · Thresholds & Valuation
Limited property value
In short
The other number on an assessor's record, and the wrong one for the alteration threshold. It exists to slow property tax growth, not to measure what a property is worth.
In full
Limited property value is a statutory brake on property tax growth. Each year it is the prior valuation year's limited property value plus five percent, and it may never exceed the parcel's current full cash value. It is shown on notices and tax rolls as one total for the property, with no separate figures for land and improvements.
It is not the measure for the alteration threshold. A.R.S. § 42-5075(S)(1)(a) names full cash value and does not mention limited property value at all. ADOR Tax Policy confirmed in writing on August 13, 2026 that the most recent full cash value governs, not the limited property value.
The entry exists so the wrong number is identifiable, because the two appear side by side on the same record and nothing labels one as the tax figure. Limited property value climbs five percent a year regardless of the market, while full cash value tracks market conditions. In a rising market the limited figure runs materially below the full cash value.
Using it produces a smaller denominator, which produces a smaller threshold, which pushes contracts over the line that are in fact under it. The error runs toward over-taxing the contract, not under-taxing it.
Limited property value has its own purposes elsewhere: computing levy limitations for counties, cities, towns and community college districts, and levying primary and secondary property taxes on all property except the categories at A.R.S. § 42-13304.
A.R.S. §§ 42-11001(7), 42-13301, 42-5075(S)(1)(a); ADOR Tax Policy information letter, 2026-08-13