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Peoria Unified to refund estimated $7.2M in Maricopa County tax lawsuit

District had no fault as county misclassified residential property

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Hundreds of thousands of residential Maricopa County properties had to be revalued and hundreds of entities must pay back property tax dollars as a result of a recent class-action lawsuit.

Peoria Unified School District is one of those entities and will have to refund taxpayers to the tune of an estimated $7.2 million.

The lawsuit — Qasimyar v. Maricopa County — stems from a resident challenging the way the county calculated how it charged homeowners for property taxes.

The Arizona Court of Appeals upheld the ruling that Maricopa County overtaxed many property owners from 2015 to 2023.

As a result, county taxing authorities — including PUSD — must refund revenue previously received or budgeted funds because of excessive property valuations.

PUSD CFO Michele Myers said the ruling is affecting school districts across the county through no fault of their own.

“The districts will be required to refund revenue cash payments previously received related to those years that were collected and levied to support school districts’ budgets,” she said. “(This) will pull back any monies that have been deposited resulting in negative cash amounts for the related school districts.”

The situation has been continually evolving and the processing of the refunds will not start until July 2025, Myers said.

In 2021, the Arizona Court of Appeals upheld a decision that said a “property’s limited property value must be calculated using a specific statutory calculation” if there is a change in use from a primary residence to a non-primary residence or rental or vice-versa, according to a Maricopa County press release.

The method by which Maricopa County calculated taxing residential property taxes was done the same way in all the other counties in Arizona, said Jason Berry, a county spokesman.

“Only Maricopa County got sued over the issue,” Berry said.

Those impacted property owners will receive a refund check in the mail for each of the seven years plus interest that’s accrued along with a letter explaining the reason for the refund, according to Jordan Dale, a spokesman for the Office of the Arizona State Treasurer.

The issue will not go beyond the 2023 tax year as the state Legislature changed the laws regarding how those properties are classified.

Editor’s note: Independent Newsmedia reporter Brent Ruffner contributed to this report.

Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.

Peoria Unified, Arizona, residential property, Maricopa County, property taxes, class-action lawsuit

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