By Teri Carnicelli
It’s that time of year again, when some Valley school districts decide to help their budgets through a hike in residents’ property tax rates. And while the city of Phoenix itself is not raising its rate (for the second year in a row), the city does expect to see its tax revenue increase thanks to the rising value of properties around town.
The Phoenix Union High School District Governing Board voted on June 20 to raise its primary property tax levy by $3 million, which will increase the primary property tax of a $100,000 home within the district boundaries from $124.27 to $130.70. State law allows school districts to increase their tax levy by a certain amount each year without voter approval.
Homeowners citywide also can expect to see another bump in their primary property taxes this year. The city of Phoenix’s primary property tax supports the General Fund services such as police and fire, parks and recreation, libraries and senior and community centers. The city’s primary property tax rate for 2017-18 will be unchanged from last year’s rate of $1.3359 per $100 of assessed valuation.
Of course, the city of Phoenix does not control property values. But as the economy grows, property values have increased and some property owners likely will pay more in taxes as a result. The city anticipates a 4-percent increase in its primary property taxes. By law it is required to adopt its tax levy, which the Phoenix City Council will do on July 6 at its regularly scheduled meeting.
Though it hardly will be noticeable, the city’s secondary property tax rate for 2017-18 will decrease by $0.01, from $0.8341 to $0.8241 per $100 of assessed valuation. Secondary property taxes pay the bonded debt service for facilities like libraries, police and fire stations, storm drains and parks. For more information, visit www.Phoenix.gov/budget.
In addition, the Maricopa County Board of Supervisors, which also governs the Flood Control, Library, and Stadium districts, adopted a budget of $2.49 billion on June 19. As part of that budget, the board agreed to put forth a primary property tax increase of $17.8 million, or 3.5 percent, which would raise primary property taxes on a $100,000 home from $135.33 to $140.09. But the board also voted to issue two secondary property tax increases: $2,874,615 or 4.9 percent for the Flood Control District, which would increase secondary property taxes on a $100,000 home from $17.08 to $17.92; and $710,702 or 3.5 percent for the Library District, which would increase secondary property taxes on a $100,000 home from $5.37 to $5.56.
Maricopa County is required to stay below a maximum levy each year. With the adoption of the Fiscal Year 2018 budget, the county will be $148.2 million below that limit. Maricopa County receives only 12 percent of every dollar paid in property taxes.
In accordance with State statute, the Maricopa County Board of Supervisors will vote on the final tax levy proposal 10 a.m. Monday, Aug. 21, at 301 W. Jefferson St. All interested citizens are invited to attend. If approved, the tax increases will go into effect in the next round of property tax bills, which will be sent out beginning in September.