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Voters must weigh the potential improvement in K-12 education against higher marginal tax rates and the potential loss of new business investment. In various surveys, Arizona’s K-12 public schools consistently rank near the bottom. In response, in 2018 Governor Ducey signed the 20×2020 law, which increased teacher pay by 20% and spending on education by $1 billion when fully implemented. Prop. 208 promises to raise an additional estimated $827 million in revenue in 2021. After covering the administrative costs of implementing and administrating the new program, revenue generated by Prop. 208 will be distributed as grants into several buckets: 50%…
A successful property tax appeal of new construction can reduce a property’s tax liability over the property’s life due to Arizona’s “Rule B” ratio. “RULE B” VALUATION To understand the effect of a “Rule B” valuation, let’s take a simple example of a newly constructed apartment. Suppose construction of your new apartment was completed in March 2020. The county assessor sends out a supplemental valuation for tax year 2021 in September 2020 and sets a full cash value of $28,000,000. In Arizona, the full cash value (FCV) is typically synonymous with market value. This is the easy part. Just to…
Recent federal spending and the outcome of the November elections could lead to a reduction in the combined estate and gift tax exemption, perhaps as soon as January 1. The federal government imposes an estate tax when a person dies. The federal government also imposes a gift tax when gifts are made during a person’s life.1 However, everyone is entitled to a combined estate and gift tax exemption from federal taxes. (Arizona does not impose an estate or gift tax.) For persons who die or make gifts during calendar year 2020, the combined estate and gift tax exemption is $11.58…
Arizona law provides that penalties for non-payment or late payment of certain taxes may be waived or abated upon a showing of reasonable cause for failure to comply. Arizona law provides that these penalties may be waived or abated upon showing of reasonable cause for failure to comply. “Reasonable cause” means that the taxpayer exercised ordinary business care and prudence but was nevertheless unable to file the return, furnish the requested information, or provide for payment of a tax liability within the prescribed time. Aside from demonstrating reasonable cause, taxpayers must also show that their failure to timely pay or…
Ruling reaffirms the commonly used valuation method for LIHTC properties. See the Tax Court’s decision in El Rancho Affordable Housing L.P. v. Maricopa County . The Low-Income Housing Tax Credit (LIHTC) program is the most important resource for creating affordable housing in the United States. Congress instituted the LIHTC program in 1986. Between 1987 and 2017, approximately 3.13 million housing units have been placed in service nationwide, including 16,000 housing units in Arizona. Arizona currently has the nation’s third-worst affordable housing shortage for low-income earners, and the Phoenix metro area is tied for the eighth-worst among large U.S. metropolitan areas.…
The Arizona Limited Liability Company Act, which went into full effect September 1, 2020, poses potential consequences for LLCs that have inadequate operating agreements. Effective September 1, 2020, the Arizona Limited Liability Company Act (ALLCA) repealed Arizona’s 1992 LLC law and put in its place a comprehensive array of default provisions that, in the absence of a properly worded operating agreement, can change the way your LLC functions and is governed – with potential consequences to the LLC’s members. If your LLC does not have an operating agreement, and you take no remedial steps, the ALLCA’s default provisions will apply…
Thirteen Frazer Ryan attorneys were among The Best Lawyers in America ® selections announced on August 20, including first-time honoree and mental health attorney Josh Mozell (Trusts and Estates) and “Ones to Watch” honoree Colleen Thomas (Litigation – Trusts & Estates). Repeating as honorees are Chick Arnold, Scott Erickson,   John Fitzpatrick,   Yale Goldberg,   Marsha Goodman,   Doug John,   Josh Moya,   Phil Rupprecht,   Jim Ryan,   T.J. Ryan  and of counsel Chuck Whetstine .…
A well-respected member of the Phoenix legal community, Phil has for many years held the AV Preeminent® peer rating granted by Martindale-Hubbell, and he has been recognized by the National Law Journal among its top-rated lawyers in business and commercial litigation.  Phil earned his law degree in 1987 at the University of California Hastings College of Law.  Active in the community, Phil is a member of the North Phoenix Lions Club and a past district governor of Lions Club International. He is a Scottsdale Leadership alumnus and a member of the Central Arizona Dental Society Foundation board of…
Although Nakamoto, whose name is thought to be a pseudonym for an individual or group, has been silent since 2011, his prototyped cryptocurrency system continues to explode, with many new forms of cryptocurrency available. Its blockchain structure, in which a publicly available ledger tracks all transactions, has potential applications beyond currency. For example, self-enforcing agreements embedded in computer code and managed by a blockchain, known as “smart contracts,” may be used to replace certain contracts, since they allow parties to digitally facilitate and enforce the performance of contracts. Because of its decentralized nature, there is no need to pay intermediaries,…