Tucson Mechanical Contracting, Inc. v. Arizona Department of Revenue
In Tucson Mechanical Contracting, Inc. v. Arizona Department of Revenue, 175 Ariz. 176, 178, 854 P.2d 1162, 1164 (App. 1992), the Court compared the origins of property taxes and transaction privilege taxes. The Court noted that "unlike liability for property taxes, which arises from the affirmative act of the state or county government, liability for transaction privilege taxes arises automatically when a taxpayer engages in taxable business activity in Arizona." Id.
Property taxes, therefore, become an inherent liability of the land only when the government takes action to value the land and levy the tax.