If you run a business in Maricopa County, personal property tax is an annual tax on the tangible things your business owns and uses: desks, computers, machinery, tools, equipment.1Maricopa County Assessor’s Office. Business Personal Property FAQs Starting January 1, 2026, Arizona exempts the first $500,000 of depreciated business personal property value, so many smaller operations now owe nothing.2Arizona Legislature. SB1749 Summary Businesses above that threshold report their assets to the Maricopa County Assessor each spring, and the Treasurer bills the tax in two installments the following fiscal year.
Who Owes and What Counts
The tax applies to tangible property a business owns and uses that is not real estate. Think office furniture, computer hardware, specialized machinery, tools, and heavy equipment.3Maricopa County Assessor’s Office. Business Personal Property
Several things are not taxed. Household goods you use in your own home are constitutionally exempt, so your kitchen appliances and living-room furniture stay off the books.1Maricopa County Assessor’s Office. Business Personal Property FAQs Business inventory, raw materials, and merchandise held for resale are exempt as well.4Arizona Department of Revenue. Arizona Personal Property Tax Intangible assets like patents, goodwill, stocks, and accounts receivable are generally not subject to personal property tax in Arizona.
The $500,000 Small-Business Exemption
Arizona raised the business personal property exemption from roughly $207,000 to $500,000 in depreciated value, effective January 1, 2026.2Arizona Legislature. SB1749 Summary If all of your taxable personal property, after the Assessor’s depreciation factors are applied, totals $500,000 or less, you owe no personal property tax.
A few rules shape how the exemption works:
- It applies to depreciated value, not original cost. A business that bought $800,000 of equipment years ago may still qualify once depreciation brings the current value below the threshold.
- You get one exemption per entity statewide. Operating in multiple counties doesn’t give you a separate $500,000 cap in each; the combined depreciated value of all your accounts determines eligibility.
- Businesses above the threshold must continue filing annually with the Assessor.
Filing the Business Property Statement
The reporting form is the Arizona Business Property Statement, DOR Form 82520, commonly called the “520 form.”5Maricopa County Assessor’s Office. Business Personal Property Forms The Assessor mails it in January. You can also download it from the Maricopa County Assessor’s website or file through the county’s e-filing portal.3Maricopa County Assessor’s Office. Business Personal Property
For each asset, provide a description, the year of acquisition, and the full acquisition cost. Full cost includes the purchase price plus freight, installation, special wiring or plumbing, and sales tax.1Maricopa County Assessor’s Office. Business Personal Property FAQs Report everything in your possession as of December 31 of the prior year. A running ledger with receipts beats reconstructing numbers from memory every spring.
The completed form must reach the Assessor no later than April 1. If you mail it, the U.S. Postal Service postmark has to show April 1 or earlier; internal company postage meters don’t count.1Maricopa County Assessor’s Office. Business Personal Property FAQs Missing the deadline or failing to report property exposes you to a penalty equal to 10 percent of the taxes owed on any unreported property.6Arizona Legislature. Arizona Code 42-15053 – Duty to Report Personal Property; Exemption The obligation to report is yours even if the Assessor never mails you a form.
How the Bill Is Calculated
You report what you paid; the Assessor applies standardized depreciation factors based on each item’s age and type to arrive at a “full cash value” that approximates open-market resale value.3Maricopa County Assessor’s Office. Business Personal Property Commercial and industrial personal property is Class One, assessed at 18 percent of full cash value.7Arizona Department of Revenue. Arizona Department of Revenue – Property Classification The combined tax rates for the county, city, school district, and any special districts where your business sits are then applied to that assessed value. Equipment with a $100,000 full cash value becomes $18,000 in assessed value, and the local rates run against the $18,000.
Payment Schedule and Late Interest
After values are finalized, the Maricopa County Treasurer mails tax bills in the fall. Payment splits into two halves:8Arizona Department of Revenue. Property Tax FAQs
- First half due October 1, delinquent after 5:00 p.m. on November 1.
- Second half due March 1 of the following year, delinquent after 5:00 p.m. on May 1.
- If your total tax is under $100, the full amount is due by November 1.
You can pay through the Treasurer’s online portal, by mailing a check, or in person at a county office. Once a payment goes delinquent, interest accrues at 16 percent per year, calculated as simple interest and prorated monthly, with any partial month counted as a full one.9Arizona Legislature. Arizona Code 42-18053 – Interest on Delinquent Taxes; Exceptions; Waiver That rate runs higher than most commercial credit lines, so there’s no financial reason to let a balance sit.
Appealing Your Valuation
If the Assessor set your property’s full cash value too high or used the wrong classification, you can file a Petition for Review with the Assessor. The deadline is 60 calendar days from the date the notice of valuation was mailed, and that date is printed on the notice itself.10Arizona State Board of Equalization. How to File a Notice of Valuation Appeal Miss it and you lose the right to challenge that year’s value.
Your petition has to include your opinion of value and the method you used to reach it: comparable sales, cost to replace the asset, or an income approach. Concrete support (recent purchase prices, appraisals, listings for similar equipment) carries the case.
If the Assessor rules against you, you can escalate to the State Board of Equalization within 25 days of the date the Assessor’s decision was mailed.11Arizona State Board of Equalization. How to File an Appeal The Board reviews independently and can override the local assessment.
Closing, Moving, or Selling the Business
If you close your business or move it out of Maricopa County, notify the Assessor in writing. You can write directly on the front of your property statement or send a separate letter with your business account number and the closure or relocation date.12Maricopa County Assessor’s Office. Frequently Asked Questions Without that notice, the Assessor keeps generating bills based on the assets you last reported.
When you sell a business, the property statement reflects whatever was in your possession on December 31 of the prior year. If the sale closes mid-year, the original owner is typically on the hook for the full tax year’s liability unless the purchase agreement assigns it differently. Spell this out in the sales contract.
A Note on Mobile Homes
Mobile homes in Maricopa County are taxed as personal property by default, even though the owner isn’t running a business. If you own both the home and the land underneath it, you can file an affidavit of affixture with the county recorder to reclassify the home as real property.13Maricopa County Assessor’s Office. Mobile Homes General Information Doing so changes how the home is assessed and taxed and transfers ownership from the MVD title to the real property deed.14Arizona Legislature. Arizona Code 42-15203 – Affidavit of Affixture Any delinquent personal property taxes on the home have to be cleared first.