County reduces property taxes

The Wickenburg Sun

8-23-07

The Maricopa County Board of Supervisors recently approved the lowest overall county-controlled combined property tax rate for Maricopa County in 28 years.

The 9.6 percent reduction is the largest rate reduction since 1981. Both the primary and county-controlled secondary tax rates have been lowered.

Maricopa County’s primary property tax rate has been cut by 7.48 cents per $100 of assessed valuation. When combined with the Flood and Library District secondary rates, which also are controlled by the Board of Supervisors, the overall property tax reduction is 13.78 cents per $100 of assessed valuation.

“Reducing the burden on property owners is our objective,” stated Supervisor Max Wilson, District 4. “Once again, we have followed through on this commitment.”

By law, the primary property tax levy can increase only 2 percent each year on existing properties. Although the secondary property taxes for Flood and Library Districts are not similarly restricted by law, the Supervisors voluntarily lowered those tax rates to off-set potential increases resulting from increased valuations.

President of the Arizona Tax Research Association Kevin McCarthy applauded the Supervisors’ actions.

“The seeds of property tax revolts are sown when elected officials demonstrate they cannot be trusted with the extraordinary power granted to them through a valuation-based property tax system, McCarthy explained. “In contrast, Maricopa County Board of Supervisors deserves great credit for voluntarily reducing their secondary tax rates for special districts in recognition of the sharp increase in values.”

The county-controlled combined property tax rate (the portion of property taxes overseen by the County Board of Supervisors) makes up about 15 percent of an individual’s tax bill. Other factors, including increased property values and other property taxes levied by cities, community colleges, and school districts also affect a property owner’s total tax bill.

Of course we know that the reduction in tax rates was required by the levy limitations in place since 1981 and reaffirmed last year with Prop 101. As valuations rise the tax rates fall so as not to exceed the levy limit. As this article alluded, it is those taxing entities which have no levy limits and which increase their property tax revenue by double digits each year that necessitate the Tax Revolt.