Ariz. Rev. Stat. § 48-524
The owner of any property assessed, who is entitled to compensation under the award made by the judgment, may, at any time after the assessment becomes payable, and before the sale of the property for nonpayment, as provided in this article, demand of the street superintendent that the assessment, or any number of assessments, be set off against the amount to which he is entitled under the judgment. If the amount of setoff is equal to or greater than the assessments, including penalties and costs due thereon, the assessments shall be marked "paid by setoff." If the amount is less than the assessments, and penalties and costs due thereon, the person demanding the setoff shall at the same time pay the difference to the street superintendent, and the assessments shall, upon payment be marked paid, the entry showing the portion paid by setoff and the portion paid in money. As a condition of the setoff, such person shall execute to the city or town, and deliver to the street superintendent, duplicate receipts for such part of the amount due him under the judgment as is set off against the assessments, penalties, and costs. One of the duplicates shall be filed by the street superintendent in his office, and the other with the clerk of the superior court, and the clerk shall satisfy the judgment to the extent paid by the assessment.
A.R.S. § 48-524