State Tax Appeal

NOTICE OF APPEAL / PETITION FOR REVIEW OF STATE TAX ASSESSMENT

Arizona — State Board of Tax Appeals or Arizona Tax Court

TABLE OF CONTENTS

1. Caption and Parties
2. Forum and Track Selection
3. Jurisdiction and Timeliness
4. Statement of Material Facts
5. Issues Presented
6. Grounds for Relief
7. Burden of Proof
8. Collection During Appeal (No Injunction Available)
9. Relief Requested
10. Verification
11. Signature and Certificate of Service
12. Sources and References

1. CAPTION AND PARTIES

BEFORE THE [ARIZONA STATE BOARD OF TAX APPEALS / ARIZONA TAX COURT (Tax Department, Superior Court of Arizona in Maricopa County)]

Docket / Case No.: [assigned on filing]

Petitioner: [TAXPAYER LEGAL NAME], a [state] [individual / corporation / LLC / partnership], Taxpayer ID / License No. [____________], address [____________].

Respondent: Arizona Department of Revenue, Legal Services Section [or the named county and its assessor/treasurer for property-tax appeals].

Assessment under appeal: Notice/Assessment No. [____________], dated [__/__/____]; Department final decision/order dated [__/__/____]; total in dispute $[amount] (tax, interest, and penalties) for tax period(s) [____________].

2. FORUM AND TRACK SELECTION

Check the single track that applies:

☐ Track A — Non-property tax (income, transaction privilege/sales, use, luxury, estate).
Petitioner appeals a final decision or order of the Arizona Department of Revenue.

• ☐ A-1: Appeal to the State Board of Tax Appeals under A.R.S. § 42-1253.
• ☐ A-2: Action in the Arizona Tax Court under A.R.S. § 42-1254 (trial de novo). The Tax Court is the tax department of the Superior Court in Maricopa County (A.R.S. § 12-161).
• ☐ A-2(a): Small Tax Claims procedure elected under A.R.S. § 12-172 (amount of tax, interest at assessment, and penalties in dispute is less than $5,000). NOTE: there is no right of appeal from a Small Tax Claims judgment (A.R.S. § 12-174).

☐ Track B — Property-tax valuation or classification.
Petitioner appeals the full cash value and/or legal classification of property. After administrative review by the county assessor (A.R.S. § 42-16051) and/or the Board of Equalization, judicial appeal lies to the Arizona Tax Court under A.R.S. §§ 42-16201 to 42-16205.

• ☐ B-1: Small Tax Claims property valuation appeal elected under A.R.S. § 12-172 (Class Three residential property of any value, or property with a full cash value of $2,000,000 or less).

☐ Track C — Property-tax error correction under A.R.S. §§ 42-16251 to 42-16259 (notice of claim under § 42-16254; appeal to court within 60 days of the Board's decision).

3. JURISDICTION AND TIMELINESS

3.A Non-property tax (Track A)

1. Administrative prerequisite. Except for individual income tax, Petitioner filed a written petition for hearing, correction, or redetermination with the Department within 45 days after the notice of proposed assessment was received (A.R.S. § 42-1251(A)). For individual income tax, the period is 90 days after the notice was mailed. Any unprotested amounts of tax, interest, and penalties were paid at the time the protest was filed, as required by § 42-1251(A).

2. Finality. The Department's order or decision became final 30 days after notice was received by Petitioner (A.R.S. § 42-1251(E)).

3. Timely appeal.
   - ☐ (Board) This appeal to the State Board of Tax Appeals is filed within 30 days after the Department's decision or order became final (A.R.S. § 42-1253(A)); or
   - ☐ (Tax Court) This action is filed in the Arizona Tax Court within 30 days after the decision or order of the Board or the Department became final (A.R.S. § 42-1254(C)–(D)(2)). Except for individual income tax cases in which the amount in dispute is less than $5,000, Petitioner may bypass the Board and proceed directly to Tax Court.

4. Trial de novo. An action in the Tax Court is heard and determined as a trial de novo (A.R.S. § 42-1254(D)(3)).

3.B Property-tax valuation/classification (Track B)

1. Petitioner ☐ did / ☐ did not file an administrative Petition for Review of Valuation with the county assessor within 60 days of the mailing of the Notice of Valuation (A.R.S. § 42-16051).

2. Timely judicial appeal. This appeal is filed with the Arizona Tax Court:
   - ☐ directly, on or before December 15 of the year in which the Notice of Valuation was sent (administrative appeal not required); or
   - ☐ within 60 days of the date of the last administrative decision, but no later than December 15 of the year the Notice of Valuation was sent (A.R.S. §§ 42-16201 to 42-16205).

3. Payment prerequisite. All taxes levied and assessed against the property that become due during the pendency of this appeal will be paid before they become delinquent, as required to preserve the Tax Court's jurisdiction.

3.C Property-tax error (Track C)

Petitioner filed a Notice of Claim under A.R.S. § 42-16254 on [__/__/____]; the tax officer disputed the claim; and this appeal to the court is filed within 60 days after the Board of Equalization's decision was mailed. Any additional taxes determined to be due will be paid before delinquency so the court retains jurisdiction (A.R.S. § 42-16254(G)).

4. STATEMENT OF MATERIAL FACTS

1. On [__/__/____], the Respondent issued the Assessment/Notice alleging tax, penalties, and interest totaling $[amount] for the period(s) [____________].
2. Petitioner timely protested and pursued the administrative remedies described in Section 3.
3. Following administrative review, the Respondent issued the final decision/order dated [__/__/____] upholding the Assessment in whole or in part.
4. Petitioner disputes the legal and/or factual bases for the Assessment, as set forth below.
5. [Add numbered, specific factual allegations — audit findings, transactions, valuation data, exemptions claimed, etc.]

5. ISSUES PRESENTED

1. Whether the Respondent correctly determined that the receipts/property/transactions at issue are taxable under [cite the specific Title 42 classification or chapter, e.g., transaction privilege tax under A.R.S. § 42-5061 et seq.].
2. Whether an applicable exemption, deduction, or exclusion was denied in error [identify].
3. Whether penalties were properly assessed given reasonable cause and the absence of willful neglect.
4. Whether interest was correctly calculated.
5. [For property appeals] Whether the full cash value and/or legal classification exceeds the value or classification supported by the evidence.

6. GROUNDS FOR RELIEF

Petitioner asserts the following grounds, each supported by the facts above and the authorities in Section 12:

a. [Legal ground — e.g., the receipts are not subject to the transaction privilege tax because ...]
b. [Factual ground — e.g., the audit overstated taxable receipts by ...]
c. [Exemption/deduction ground — cite statute]
d. [Penalty abatement — reasonable cause]
e. [Valuation ground, property appeals — the assessor's full cash value is excessive because ...]

7. BURDEN OF PROOF

☐ Track A (non-property tax). Under A.R.S. § 42-1255, the Department has the burden of proof by a preponderance of the evidence on any factual issue relevant to ascertaining the taxpayer's tax liability, provided that the record shows Petitioner (1) asserts a reasonable dispute regarding the issue, (2) has fully cooperated with the Department, and (3) has kept and maintained the records required by Title 42, Title 43, or the Department. Section 42-1255 does not relieve Petitioner of any statutory duty to substantiate an item of income or expense.

☐ Track B / C (property tax). In a property-tax valuation or classification appeal, the valuation or classification determined by the assessor or the department is presumed correct, and Petitioner bears the burden of overcoming that presumption (A.R.S. § 42-16212). Valuation is determined according to the property's current use (A.R.S. § 42-11054(C)).

8. COLLECTION DURING APPEAL (NO INJUNCTION AVAILABLE)

Arizona law bars injunctive relief against tax collection. Under A.R.S. § 42-1254(D)(1), "an injunction, writ of mandamus or other legal or equitable process may not issue in an action in any court in this state against an officer of this state to prevent or enjoin the collection of any tax, penalty or interest." Petitioner therefore does not seek, and this appeal does not create, any stay or injunction against collection.

To protect against collection while preserving the dispute, a taxpayer may instead:

• ☐ Pay the disputed tax under protest and file a claim for refund within the limits of A.R.S. § 42-1106 and the refund procedure of A.R.S. § 42-1118; a timely refund action then proceeds under A.R.S. § 42-1254; or
• ☐ Pay all unprotested amounts as required by A.R.S. § 42-1251(A) and negotiate an installment or collection arrangement with the Department; or
• ☐ (Property tax) Pay all taxes levied before they become delinquent, as required to retain the Tax Court's jurisdiction (see Section 3.B/3.C).

Interest continues to accrue on unpaid amounts during the appeal.

9. RELIEF REQUESTED

Petitioner respectfully requests that the [State Board of Tax Appeals / Arizona Tax Court]:

a. Vacate or modify the Assessment to reflect a correct tax liability not exceeding $[disputed amount];
b. Abate penalties and correct interest accordingly;
c. [Property appeals] Reduce the full cash value to $[amount] and/or correct the legal classification to [class];
d. Order a refund of amounts paid under protest, with statutory interest, if applicable;
e. Award statutory costs and any attorneys' fees permitted by law; and
f. Grant such other relief as is just.

10. VERIFICATION

I, [Name], declare under penalty of perjury under the laws of the State of Arizona that I am the [Petitioner / Title] in this matter, that I have read the foregoing Petition/Notice of Appeal, and that the factual statements in it are true and correct to the best of my knowledge, information, and belief.

Executed on [__/__/____] at [City, State].

________________________________________
[Name], [Title]

State of Arizona, County of [____________]

Subscribed and sworn to before me on [__/__/____] by [Name].

________________________________________
Notary Public — My commission expires: [__/__/____]

11. SIGNATURE AND CERTIFICATE OF SERVICE

Respectfully submitted on [__/__/____].

________________________________________
[ATTORNEY NAME], Esq. (State Bar of Arizona No. [______])
[or [Petitioner], self-represented; or, before the Board where the dispute is under $25,000, a CPA or enrolled agent under A.R.S. § 42-1253(D)]
[LAW FIRM / ADDRESS / TELEPHONE / EMAIL]
Counsel for Petitioner

CERTIFICATE OF SERVICE

I certify that on [__/__/____] I filed the foregoing with the [Clerk of the Arizona Tax Court / State Board of Tax Appeals] and served a copy on the [Arizona Department of Revenue, Legal Services Section / county attorney] at [address] by [method of service].

________________________________________
[Name]

12. SOURCES AND REFERENCES

• A.R.S. § 42-1251 — Appeal to the department; hearing (45-day protest; 90-day individual income tax; pay unprotested amounts): https://www.azleg.gov/ars/42/01251.htm
• A.R.S. § 42-1253 — Appeal to State Board of Tax Appeals (30 days; CPA/EA representation under $25,000): https://www.azleg.gov/ars/42/01253.htm
• A.R.S. § 42-1254 — Appeal to Tax Court (30 days; trial de novo; § 42-1254(D)(1) injunction bar): https://www.azleg.gov/ars/42/01254.htm
• A.R.S. § 42-1255 — Burden of proof (Department bears burden on factual liability issues): https://www.azleg.gov/ars/42/01255.htm
• A.R.S. § 12-161 — Definition of Arizona Tax Court: https://www.azleg.gov/ars/12/00161.htm
• A.R.S. § 12-172 — Small claims tax procedures (thresholds): https://www.azleg.gov/ars/12/00172.htm
• A.R.S. §§ 42-16201 to 42-16205 — Property valuation appeals to court (Dec. 15 deadline); § 42-16051 administrative petition (60 days): https://www.azleg.gov/arsDetail/?title=42
• A.R.S. § 42-16254 — Property tax error; notice of claim; appeal; payment before delinquency: https://www.azleg.gov/ars/42/16254.htm
• Arizona Tax Court Rules of Practice (17C A.R.S.), amended eff. July 1, 2025; forms via Maricopa County Superior Court Law Library Resource Center.