Arizona Tax Revolt measure's impact far-reaching

The Daily News
By JIM SECKLER

7/17/2007

KINGMAN - A 2008 ballot measure filed last week could have an impact on schools, fire departments and other taxing districts.

Arizona Tax Revolt is a taxpayers group founded by Bullhead City resident Marc Goldstone. The group has until July 3, 2008, to collect 230,047 signatures statewide in order for the measure to be placed on the ballot for the November 2008 election. If passed, the measure would go into effect in 2009. “I believe we'll get twice that many signatures,” Goldstone said.

The initiative, called the property tax levy rollback, would require secondary taxing districts to return to the levies used in 2005. The levy could increase after that by the percentage of new growth plus 2 percent inflation. Tax rates are calculated on what the levy is based. Secondary taxing districts include fire, school and flood control districts.

Goldstone said the measure would benefit fire and school districts by cutting out waste and inefficiency. It would also keep taxes under control and taxpayers will not see double-digit property tax increases. Taxing districts could still exceed the 2 percent inflation or to fund bonds but it would take a two-thirds majority by voters in the next November election.

In the next week or two, Goldstone also plans to file a second ballot measure in the 2008 election called property tax valuation rollback that would roll back property baseline valuation to 2003 values for any property, whether residential or commercial. That will help reduce the inflation of property values.

If passed, the property tax valuation rollback would go into effect in 2010. Goldstone's group will also need 230,047 signatures for the second measure to be placed on the 2008 ballot. Both measures are based on California's Proposition 13, which was passed in that state in 1978.

Arizona voters approved Proposition 101 in November that limits the primary tax rate that counties, cities and community colleges use for revenue. The proposition limits tax levy rates to 2 percent each year plus new construction.

Mohave County District 1 Sup. Pete Byers has criticized efforts to cut primary property taxes, which decrease county revenues while county expenses increase because of the county's growth.

More people move into the county, which affects county departments such as courts, jails, senior meal programs, libraries and sheriff's deputies. One of the largest expenses in the county's budget is state-mandated health care, he said.

Byers also said the tax revolt groups say the county should cut waste but no one can identify what exactly is waste. “And yet I still get calls from tax revolt terrorists who get their expertise while sitting in recliners and listening to Rush Limbaugh,” Byers said.

Bullhead City Fire Chief Rick Southey said he is meeting with Mohave County Assessor Ron Nicholson on the impact of the 2008 levy initiative. He also said he preferred state legislation, which would be better than a more restrictive initiative.

“However, I'm quite sure that the impact will be significant and detrimental to the current course the district is pursuing of providing improved service to the citizens of Bullhead City,” Southey said. “I believe that all special taxing districts will see some challenges in the years ahead.”

Southey also said the Arizona Tax Research Association, a tax watchdog group, is not in favor of the initiative.

Colorado River Union High School District Supt. Nancy Silk-Sinagoga said at this point she is not sure of the impact without seeing specific numbers but the measure could possibly impact her school district. The secondary tax levies is formula driven and is determined by the state, she said.

Phil Sauceman, superintendent of the Mohave Valley Elementary School District, is also unsure of the impact of the measure but voters in his district passed a $10 million bond 10 years ago for two new schools. “If voters approve a bond, it has to be paid for and you do that with a tax levy,” he said.

Sauceman also said in 2003, the secondary property tax rate was 1.179 percent per $100 assessed value. For the 2007-08 school year, the secondary property tax rate is 0.422 percent. In 2005, the secondary property tax rate was 0.426 percent.