Ever wondered what happens to your property taxes if the government takes part of your land in Arizona? You’re not alone. It’s a common question for homeowners and landowners facing a “partial taking,” which is when only a portion of your property is acquired for public projects like new highways, utility lines, or sidewalks. This guide breaks down how Arizona property tax partial taking works, what changes you can expect, and what steps you can take if you think your taxes are too high or not adjusted fairly.

What Is a Partial Taking?

A partial taking happens when the government uses its eminent domain power to acquire just a section of your property, not the whole thing. For example, let’s say your house sits on a large lot, and the city decides to widen the street in front. They might take a strip from the front of your yard. You keep the rest of your land and your house, but you lose that portion. Sometimes, the government might also take away a corner for a new traffic signal or use part of a backyard for a public trail. The key is that you still own what’s left, called the “remainder.”

This isn’t just about losing square footage. A partial taking can make the rest of your property less valuable or less useful, especially if it affects access, privacy, or how you use your land. For example, losing a driveway entrance or a row of mature trees can change how your property feels and functions.

How Property Taxes Are Calculated in Arizona

Before we dive into changes, let’s quickly cover how property taxes usually work. In Arizona, property taxes are based on two main things: the assessed value of your property and the tax rate set by your local government. The county assessor reviews properties each year to determine their value. This includes both the land and any buildings or improvements on it. If your property is worth less, you pay less tax. If it’s worth more, you pay more.

When the government takes part of your property, it makes sense to wonder whether your taxes will go down. After all, you own less land, and sometimes, the rest of your property may be worth less than before.

What Happens to Property Taxes After a Partial Taking?

When a partial taking occurs, your property should be reassessed. The county assessor is supposed to update the value of your property to account for the land or improvements (such as outbuildings, fences, or landscaping) that were taken. This reassessment is required by Arizona law, but it doesn’t always happen automatically or right away. Sometimes, the paperwork from the government project doesn’t reach the assessor, or the impact on your property isn’t fully understood.

The Reassessment Process

When a public project takes part of your property, the government agency leading the project (like the city or county) should notify the county assessor. The assessor then reviews exactly what was taken and figures out how it affects your property’s market value. Sometimes, the loss is straightforward, if you lose 20 percent of your lot, you might expect your assessment to drop by a similar amount. But often, it’s more complicated.

For example, if the taking leaves your property oddly shaped, makes it hard to use, or damages landscaping, the remainder might be worth much less than just the lost land. These extra losses are called “severance damages.” Maybe your backyard used to be private, but now a sidewalk runs through it. Or maybe you lost the only driveway entrance, making it tough to access your home. The assessor should look at both the loss of land and the drop in value to the remainder, sometimes called an Arizona remainder assessment.

In practice, this review can take time. It might involve site visits, appraisals, and discussions with you about how your property changed. If the reassessment doesn’t seem fair or complete, you have the right to appeal.

Seeking Arizona Property Tax Relief After a Taking

If you notice your property taxes haven’t changed after a partial taking, or if you think the decrease isn’t enough, you may need to take action. In Arizona, you have the right to appeal your property’s assessed value. The process starts by contacting your county assessor’s office and explaining your situation. Providing documentation is key. This might include maps showing what was taken, the government’s condemnation order, and any appraisals done for the settlement.

A common scenario: let’s say your property value drops by $50,000 after a partial taking, but your tax bill only goes down a few hundred dollars. You can appeal, showing how the change affected your home’s resale value, privacy, or usability. Arizona counties have specific deadlines for appeals, usually within a few months of getting your assessment notice. Missing the deadline can mean waiting another year.

Sometimes, property owners also work with appraisers or tax professionals to gather evidence. If your situation is especially complex, like if you lost commercial parking, or your business access changed, a property tax attorney can help make your case.