PROPERTY TAX RELIEF NEEDED NOW

Abraham Lincoln used to say, ‘no person’s life or property is safe as long as the state legislature was in session’ (emphasis added).  This year, our colleagues and the Governor have an opportunity to reverse that historic perception by enacting across the board property tax relief on the heels of our positive steps last session.

There are three key reasons we should enact property tax reductions as part of the tax relief package this session and why elimination of the county equalization property tax rate is good policy.  The key reasons are:

1)      Valuation increases - residential and commercial valuations will increase 30-50% statewide for next year and 41% in Maricopa County alone.  Without reductions in the property tax rates imposed by cities, counties, and community college districts, valuation increases will result in higher tax bills and further difficulty for the many Arizonans living on a fixed income.

2)      Economic development - both legislative and executive commissions have found that in order to make our state more economically competitive, we need to reduce overall property tax burdens.

3)      State budget surpluses – this “profit” should be returned to the people who produced it, especially since much of the surplus is due to real estate growth and capital gains.

The specific reasons for enacting reductions in the county equalization property tax rate:

1)       A tax is eliminated - this proposal totally eliminates an arbitrarily state-imposed property tax and leaves ample revenue to pursue other state priorities while protecting resources for education and healthcare.

2)       Equitable tax relief for everyone – this proposal gives relief across the board at a set rate of 43 cents per $100 in assessed valuation to all residents owning property.

When property tax bills are mailed this September, frustrated taxpayers will try to determine who is responsible for their higher taxes.  Arizona’s uniquely complicated property tax system provides unfortunate cover for local officials at county, city, community college and school district levels to blame everyone but themselves.  This reform is one way we can guarantee relief from Arizona’s complicated and frustrating property tax system.