Move to limit property taxes under way in Ariz.

From KVOA TV, Tucson

July, 2007

PHOENIX -- A movement is under way to give Arizona property owners tax breaks while cities, school districts, fire districts and other taxing bodies would face limits on the amount of money raised.

A group calling itself Arizona Tax Revolt filed the necessary papers Tuesday to get a ballot measure before voters next year.

"Why should taxes go up 30 percent if home values go up 30 percent," asked Marc Goldstone, a Bullhead City resident and chairman of the self-described grass-roots taxpayer group.

"All the governments and taxing entities are reaping a major amount from the increase in values," Goldstone said.

The measure called the Property Tax Levy Rollback, would require taxing bodies to return to the levy amounts they used in 2005, unless certain spending restraints are met. After that, taxing districts and cities could increase the levy only by the percentage that new growth contributed to the taxing district, along with up to 2 percent for inflation.

Levies are the basis on which tax rates are calculated. Goldstone said such a move would cut taxes equally for all classes of property owners.

Not everyone agrees including representatives of Arizona towns and cities.

"There is no direct link between valuation increases and taxes," said Ken Strobeck, executive director of the Arizona League of Cities and Towns. "If your valuations go up 40 percent, your taxes don't go up 40 percent," he said.

The Arizona chapter of the National Association of Industrial and Property Owners said the ballot measure should send a loud signal to policy makers statewide. "This is just the first tremor that's coming," said spokesman Tim Lawless, whose group has been advocating property-tax relief for businesses.

But instead of Goldstone's measure, policy makers should hold back on spending without a constitutional mandate, Lawless said.

"Policy makers need to wake up," he said.