Truth in Taxation Notice: Total Rate Unchanged, Property Tax Levy Will Decrease

Truth in Taxation Notice: Total Rate Unchanged, Property Tax Levy Will Decrease

Phoenix, AZ – June 7, 2010 – (RealEstateRama) — The city of Phoenix is publishing a Truth in Taxation notice which is required by Arizona Revised Statutes. As the state law requires, the notice only addresses the primary portion of the city’s property tax levy. However, the city’s total property tax rate remains unchanged.

As a result of declining property values and maintaining the $1.82 total combined rate, the total city of Phoenix levy for 2010-11 will decrease by approximately $37,675,000 which is a reduction of 11.7 percent.  Property taxes are comprised of two separate levies – primary and secondary. The primary portion of the property tax supports our General Fund and pays for city services such as police and fire protection, parks and recreation programs, libraries and community centers. The secondary portion of the property tax is used to pay for bonds like the 2006 Bond Program.

Although the primary property tax rate and levy is increasing next year, the city of Phoenix will offset this increase by reducing the secondary property tax rate and levy. Phoenix’s property tax rate is $1.82 per $100 of assessed value. This rate has not changed in 14 years and will not change as a result of this notice.

For example, the city of Phoenix total property tax levy on a $100,000 home is $182 this year and will remain at $182 next year. The following table shows the city primary and secondary rates for the last three years.

As a result of maintaining the combined $1.82 rate and a decline in property tax values, the total amount of property tax revenue received by the city will decrease in 2010-11.  State law requires us to publish this notice (below) any time there is an increase to the primary portion of the property tax levy even if the total property tax levy is reduced.

The following is the complete text of the legally required Truth in Taxation Hearing notice:

TRUTH IN TAXATION HEARING NOTICE OF TAX INCREASE

In compliance with section 42-17107, Arizona Revised Statutes, the city of Phoenix is notifying its property taxpayers of the city of Phoenix’s intention to raise its primary property taxes over last year’s level. The city of Phoenix is proposing an increase in primary property taxes of $6,512,701 or 5.1 percent.

For example, the proposed tax increase will cause the city of Phoenix’s primary property taxes on a $100,000 home to increase from $84.01 to $88.32.  The proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held June 23, 2010 at 3 p.m. at the city of Phoenix Council Chambers, 200 W. Jefferson St.

For more information about this property tax notice, call 602-262-4800.

Media Contacts:

Cathleen Gleason 602-262-4800
Mark Cernetic 602-262-4800
Sina Matthes 602-534-6648
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