Thresholds & Valuation
12 entries in this section. Every term is a link — open one for the full definition, its sources, and related entries.
- Alteration threshold The line above which alteration work becomes Modification. A percentage of the parcel's full cash value on residential property, a flat figure on everything else.
- Commercial property Everything the residential paragraph does not name. The threshold there is a flat $750,000 that does not move with the property's value.
- Contract amount The figure the alteration threshold is tested against: the contract price on a contract that is all alteration, and the alteration charges alone on a mixed contract.
- County assessor The county office that sets full cash value. For a contractor it is the source of the residential threshold denominator, and the figure is public before the bid goes out.
- Full cash value The county assessor's valuation that governs the residential alteration threshold. Limited property value is not the measure.
- Limited property value 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.
- Notice of Value The annual card the assessor mails an owner. It carries two values side by side, and only one of them is the alteration threshold denominator.
- Parcel The unit the county assessor values, land and improvements together. The residential threshold is a percentage of the whole parcel, not of the house.
- Property tax class The legal class the assessor assigns a parcel. For contracting it does one thing: it decides whether the residential percentage threshold or the flat commercial figure applies.
- Residential property Defined for the alteration threshold by property tax class, not by what the building looks like. Class three, class four, and two narrow class two subdivisions.
- The 25% cushion An overrun allowance that keeps a project an alteration when it finishes above the threshold. The statute grants it for any reason; ADOR's guidance grants it more narrowly.
- Valuation year The year an assessor's value belongs to. It matters because the residential threshold asks for the most recent value as of two different dates, and takes the higher.