Arizona Bill Caps Scottsdale Property Taxes at 3 Percent Starting 2027

Arizona House Bill 2045 sets a 3 percent annual limit on property tax increases for owner-occupied homes beginning with 2027 assessments. Scottsdale residents who own and live in their primary residences stand to receive the cap, while owners of commercial buildings and investment properties receive no equivalent limit.

Why the Bill Matters for Scottsdale Now

Maricopa County recorded a 12 percent average rise in residential assessed values between 2024 and 2025, according to county assessor records. The new state limit responds to those increases by restricting how much local governments can collect from qualifying homeowners each year.

Scottsdale households in ZIP codes 85251 and 85258, where median home values exceed $650,000, face typical annual tax bills of $4,800. Under the cap those bills would rise by no more than $144 in the first year of implementation, while commercial parcels along Scottsdale Road would continue to face full reassessment.

Budget Figures and Who Receives Relief

The legislation projects $12.4 million in cumulative tax relief for Scottsdale primary residences through 2029, based on 2025 assessment rolls. No additional state funds are appropriated; the cap simply reduces the growth rate of existing local levies.

Local advocates note that renters in the city’s 31,000 multifamily units will see no direct benefit, because the bill does not require landlords to adjust rents when their own tax obligations remain uncapped. City budget documents show that Scottsdale derives 38 percent of its general fund revenue from property taxes, so slower growth in residential collections will require future adjustments to spending or other revenue sources.

County assessors will begin applying the 3 percent cap to 2027 tax statements mailed in late 2026. Homeowners must file a one-time primary residence affidavit with the Maricopa County Assessor’s Office by October 2026 to qualify, with annual verification required thereafter.