Questions about the CAGRD assessment on your tax bill?
The CAGRD replenishment assessment on your tax bill is based on the volume of groundwater you use at your home that needs to be replenished by CAGRD. If your groundwater use has increased, your replenishment assessment may be higher. You can check with your water provider.
If your water consumption has been the same over the years, and your CAGRD tax line item is higher this year, it could be due to a different/lower groundwater allowance applied by your Water Provider to offset the groundwater volume used.
Each subdivision is granted a Groundwater Allowance by the Arizona Department of Water Resources, reflecting an amount of water that can be delivered to the subdivision without needing to be replenished. Your water provider decides how much Groundwater Allowance to use for your subdivision each year. All groundwater volume usage must be replenished once the Groundwater Allowance is used up. This will increase your CAGRD assessment even if your usage has remained similar to previous years.
For more information about CAGRD and replenishment assessments, see the FAQ section below. If you have more questions about your specific situation, please email us with your parcel number: CAGRD2@cap-az.com or call 623-869-2333 M-TH.
If your water consumption has been the same over the years, and your CAGRD tax line item is higher this year, it could be due to a different/lower groundwater allowance applied by your Water Provider to offset the groundwater volume used.
Each subdivision is granted a Groundwater Allowance by the Arizona Department of Water Resources, reflecting an amount of water that can be delivered to the subdivision without needing to be replenished. Your water provider decides how much Groundwater Allowance to use for your subdivision each year. All groundwater volume usage must be replenished once the Groundwater Allowance is used up. This will increase your CAGRD assessment even if your usage has remained similar to previous years.
For more information about CAGRD and replenishment assessments, see the FAQ section below. If you have more questions about your specific situation, please email us with your parcel number: CAGRD2@cap-az.com or call 623-869-2333 M-TH.
Member Land FAQ
Regarding Member Lands (MLS)
What is the CAGRD?
Central Arizona Groundwater Replenishment District (CAGRD) was established in 1993 by the state legislature to serve as a groundwater replenishment entity for its members. It provides a method for property owners and water providers to demonstrate a 100-year assured water supply under Arizona law by agreeing to have the CAGRD recharge amounts of groundwater over the limits established by the assured water supply rules. The CAGRD is operated by the Central Arizona Water Conservation District (CAWCD), which also oversees the Central Arizona Project (CAP). The 15-member CAWCD Board of Directors governs the CAGRD but is a legal and financial entity separate from the CAWCD. The CAGRD includes three Active Management Areas (AMA) within Phoenix, Tucson, and Pinal County.
I have a Central Arizona Groundwater Replenishment District (CAGRD) assessment on my property tax bill. What is this?
Under current State of Arizona law, your house could not have been built without enrollment as a Member Land of the CAGRD. Residential subdivisions developed after February 1995 can no longer rely solely on unreplenished groundwater for their homes. The developer of your subdivision enrolled your home in the CAGRD so that the CAGRD would replenish or replace the groundwater pumped to serve your home. In other words, the water you use must be replaced through artificial recharge.
Do I have to pay the CAGRD tax?
Yes. You must pay the cost of replacing the groundwater you use. This cost is included as a line item on your property tax bill and must be paid to the county along with your property tax payment. The county then transfers that money to CAGRD, which purchases water to replenish the aquifer.
How does the CAGRD determine what I have to pay?
Each year, the CAWCD Board of Directors approves a replenishment rate for the CAGRD. This rate is applied to the excess groundwater reported to the CAGRD by your water provider to determine the replenishment assessment shown on your property tax statement. CAGRD replenishment rates are based on projections of water demand, Central Arizona Project delivery costs, and administrative costs. If you would like to calculate an estimate of your CAGRD Assessments, please click here.
Why is the CAGRD assessment on my home different from my neighbor's?
If you use more groundwater at your home than your neighbor, the replenishment assessment on your property tax bill will be higher than your neighbor's.
How can I reduce the assessment I have to pay to the CAGRD?
The CAGRD replenishment assessment you must pay is based on the volume of water you use at home. Therefore, reducing your water consumption will reduce your replenishment assessment and water bill. For more information on how to conserve, click here. For more information regarding the CAGRD assessment, contact Monika Tkaczyk at mtkaczyk@cap-az.com or 623-869-2279.
My property tax bill has a CAGRD replenishment assessment, but my neighbor across the street does not. Why?
There are several possible explanations:
- New water laws became effective in Arizona in 1995. If your neighbor's house was built prior to 1995, there would be no replenishment obligation for water delivered to their home.
- If your neighbor's home was built after 1995, it may be located within the service area of a water provider that has enrolled as a Member Service Area of the CAGRD. If this is the case, their replenishment assessments are collected by their water provider along with their monthly water bills.
- Their water provider may not be delivering groundwater to their home. If this is the case, then there is no replenishment obligation and, consequently, no assessment.
- Their water provider may have the capability to perform replenishment services. If this is the case, there would be no CAGRD replenishment assessment. The water provider's costs of doing its own replenishment are likely included in its monthly water rates.
How can I get my home out of the CAGRD?
Under current law, there is no way for you to get your home out of the CAGRD. The reason for this is to ensure that there will be sufficient water supplies to meet all future demands in the Active Management Areas in Arizona. However, if your water provider converts entirely from groundwater to renewable water supplies (reducing groundwater deliveries to your home to zero), then you would only be responsible for paying the Annual Membership Dues.
Is my water bill affected by membership in the CAGRD?
No. The CAGRD assessment is a line item collected through your property taxes to pay the costs of replenishing groundwater delivered to your home.
How does the CAGRD know how much groundwater I used?
Each year, your municipal water provider is required by law to submit a report to the CAGRD. This report shows how much groundwater the municipal provider delivered to each individual parcel in your subdivision (including your home).
Why is my CAGRD tax higher than in the past?
Each subdivision is granted a Groundwater Allowance by the Arizona Department of Water Resources, reflecting an amount of water that can be delivered to the subdivision without needing to be replenished. Your water provider decides when to use the Groundwater Allowance for your subdivision. Once the Groundwater Allowance is used up, each property owner must replenish all of the pumped groundwater. This will increase your CAGRD assessment even if your usage has remained similar to previous years.
Another reason could be increased water use at the property in the past year, which results in higher CAGRD taxes based on higher groundwater usage. Common reasons for an increase include installing a pool, increasing irrigation use, landscaping changes, and remodeling (adding a bathroom). If you are still questioning your usage, please contact your water provider; although infrequent, mistakes do happen.
Another reason could be increased water use at the property in the past year, which results in higher CAGRD taxes based on higher groundwater usage. Common reasons for an increase include installing a pool, increasing irrigation use, landscaping changes, and remodeling (adding a bathroom). If you are still questioning your usage, please contact your water provider; although infrequent, mistakes do happen.
I maintain taxes for an HOA, and a parcel that was taxed in the past shows a 0 balance on the Assessor's Website; what do I do?
Regarding taxes on HOA-owned parcels and common areas, the county may levy taxes on one or several parcels associated with the same HOA, or the water provider may report water use on different parcels from year to year. Please review all HOA-owned parcels' tax records to ensure you get all the assessments.
