While Pima County Board of Supervisors was voting to approve a tax rate increase to support a $1.2 billion budget on Monday, Maricopa County Board of Supervisors voted to reduce property owners’ tax bills in 2013-2014.
The increase for Pima County residents sets the primary tax rate at $3.66 per $100 of assessed value, a 7.3% increase from the current $3.41 tax rate. While Maricopa Supervisors voted to leave the rate at $1.46 per $100 of assessed value, a move to cut property taxes in Maricopa by $32.9 million. The reduction was made possible by Maricopa Board’s decision two months ago to reduce the general fund budget from the previous year and the most recent calculations showing property valuations on the rise in Maricopa.
Maricopa Board Chairman, Andy Kunasek is quoted in a written release, “What we have done is balance the desire to lower property taxes during a time of lingering economic hardship with the increasing needs of the organization, especially criminal justice and law enforcement. It was a good, sound conservative budget, and it has resulted in another drop in county taxes for our residents. It was not easy, but it was accomplished.”
Maricopa Board of Supervisors vote was unanimously in favor.
Pima County officials say the increase in tax rate is necessary to maintain service levels to residents. However, they also claim the average taxpayer will essentially be paying the same amount as last year given an estimated 8% drop in property values countywide that will offset the 7.3% tax increase. Property tax calculations are based on two-year-old (2010) assessments, set during a low point in the housing market recession.
However, property valuations are on the rise from the most recent reports and up by 12.45% for the first half of the year in Pima County. If the annual bill on a home were based on a value of $159,900 – the current Pima County median price – the increase in County taxes would be about $40. See full story on July residential valuations here: https://realestatedaily-news.com/tucson-home-prices-up-12-45-inventory-low/
The vote at the Pima County Board was 3-2 for the tax rate hike. Ray Carroll (District-4) and Ally Miller (District-1), the two Republicans on the Board, were opposed to the increase.
There are 94 separate taxing jurisdictions within Pima County. Only four are controlled by Pima County and debt service for example on three of those four are lower than a decade ago, at $1.85 per $100. The exception is the Library District. Ten years ago, when the City of Tucson and the County shared costs for the library system, that rate was 21 cents. Since the County assumed full responsibility for the library system in 2006, the rate has increased to 37 cents per $100. Bringing the total debt service to $2.22, that alone is 34% higher than the $1.46 primary tax rate per $100 in Maricopa County.
While Pima County’s primary tax rate increased by 7.3% over the rate from last fiscal year, the City of Tucson’s and the City of South Tucson’s primary tax rates increased by 27.2% and 9.7%, respectively, according to Pima County officials written statement.