Homeowners associations paying separate taxes on each common area parcel need to STOP! In March of 2000 the Arizona Department of Revenue issued a publication addressing A.R.S. §§ 42-13401 through 13404. In summary, these statutes, and subsequent amendments, allow associations to consolidate all of their tax parcels and only be assessed up to $500 per parcel.
This tax benefit is available when common area is deemed “qualified residential common area.” Qualified common area is generally any common area within an association. It is important for you to consult with an attorney familiar with these laws to determine whether you can take advantage of them. Frankly, we’ve seen communities save tens of thousands of dollars every year simply by consolidating their parcels.