Additional Depreciation

Property Tax Liability Reduction
To encourage new capital investment by reducing personal property tax liability. The additional depreciation schedule is applied to the first 5 years of the property assessment and accelerates depreciation by 5% per year for 5 years.

Depreciation Schedule
Year
Additional Rate
 Year 1
 30%
 Year 2
 46%
 Year 3
 62%
 Year 4
 78%
 Year 5
 94%

Arizona Department of Revenue Schedules
After the 5th year, taxable value continues to be determined using Arizona Department of Revenue (ADOR) schedules. The additional depreciation schedule is based on ADOR replacement cost new less straight-line depreciation schedules. This program applies to Class 1 Commercial and Industrial personal property and Class 2 Agricultural personal property.