Sponsored by

Voters approve Prop 117 limiting property valuation increases

Thanks to

PHOENIX – Voters on Tuesday approved a ballot measure to limit increases in property valuations that determine how much property taxes people pay.

Unofficial returns showed Proposition 117 winning by a wide margin.

The measure, which will take effect in 2015, will place a 5 percent annual limit on how much the assessed value of property can rise. That will shield owners from the kinds of spikes seen during the real estate bubble of the last decade, supporters said.

Kevin McCarthy, president of the Arizona Tax Research Association, which led the campaign for Proposition 117, said the ballot measure also will bring "dramatic simplification" to the current system.

"It's going to make the tax system simpler for taxpayers to understand and stabler for local governments to manage," McCarthy said.

Opponents had argued that the change would add uncertainty to the current property tax system and could lead to unfair and inequitable taxation.

"There's a lot of concern about whether this proposition will lower property taxes, which impacts our cities and our counties," said Lea Marquez Peterson, president and CEO of the Tucson Hispanic Chamber of Commerce. "In the long term, it'll result in less money for cities and counties to spend on core services."

Supporters said Arizona's property tax valuation system is one of the most complicated in the nation. Since 1980, property owners have been assessed on two taxable values: the full cash value – or market value – and limited property value – or secondary value.

Thanks to our donors and sponsors for their support of local independent reporting. Join Ronald P. Spark, Heidi Rowley, and Bryn Bailer and contribute today!

Full cash value is used to compute secondary taxes ranging from bonds to special districts for services such as fire and flood control. Limited property value is used to compute taxes for maintenance and operation of school districts, cities and counties.

The limited property value currently can grow by 10 percent each year and, during a real estate boom, can grow every three years by 25 percent of the difference between the two values.

A group called "Yes on 117" registered with the Arizona Secretary of State's Office had received $128,500 in contributions through Oct. 25. The largest amount, $55,000, came from the Arizona Tax Research Association, a watchdog group of which McCarthy is president.

A group called "Truth & Concerns on Prop. 117" reported receiving $39,400 through Oct. 25, of which $32,500 came from Sage Tax Group, an Arizona company that consults on property tax appeals.

- 30 -
have your say   

3 comments on this story

3
1464 comments
Nov 7, 2012, 2:41 pm
-0 +0

@Dylan SmithDylan Smith said:

     
     
@HipHopOPotomus
I don’t quite follow - should you instead be taxed on property you don’t own?

     
     
     

That’s hilarious! Thanks for making me smile on this largely depressing day.

I will say that this is one of the ones voters got right.

“There’s a lot of concern about whether this proposition will lower property taxes, which impacts our cities and our counties,” said Lea Marquez Peterson, president and CEO of the Tucson Hispanic Chamber of Commerce. “In the long term, it’ll result in less money for cities and counties to spend on core services.”

What would the reaction be if I started a white chamber of commerce?

Anyway, this is part of the problem right there….taxpayers are not a blank check, and this prop helps reign in politicians who think that they are. Who the hell said this is going to lower taxes, anyway? All it does is put a 5% annual cap on any potential increases. I’m not seeing a problem with that. Rather, I think it’s a very prudent and responsible law.

2
402 comments
Nov 7, 2012, 12:55 pm
-0 +0

@HipHopOPotomus

I don’t quite follow - should you instead be taxed on property you don’t own?

1
2 comments
Nov 7, 2012, 12:48 pm
-0 +0

The fact that you have to pay taxes on the property you already own is 8ull $h!t.  At least the government’s ability to take your home away has been limmited.

Sorry, we missed your input...

You must be logged in or register to comment

  • A
  • A
  • A
  •   Share:
  • more»
Show previews