Truth in Taxation notice published; city property taxes to remain a fraction of owners’ total tax bill

May 18, 2009 – (RealEstateRama) — Scottsdale this week is publishing a Truth in Taxation notice, as required by Arizona state law, which deals solely with the city’s primary property tax levy. The city’s “combined” (primary and secondary) property tax rate is expected to remain unchanged next year.

Under Arizona’s two-tiered property tax system, primary, or “limited,” property taxes pay for government operations. The secondary, or “unlimited,” property taxes pay for voter-approved bonds which fund construction of public facilities and infrastructure. About 11 cents of every dollar in property taxes paid by Scottsdale property owners goes to the city for these two uses, and the remainder goes to public schools, the county, community colleges and various special taxing districts (see graph).

The city’s combined rate will stay flat at 79 cents for fiscal year 2009-10. The owner of a home valued at $100,000, for example, would pay about $79 in city property taxes. The amount of the property tax bill on each individual property depends on the tax rate and the property’s assessed value. The Maricopa County Assessor’s Office determines property values used to calculate tax bills — not the city of Scottsdale.

The City Council is set for tentative adoption of the 2009-10 budget at 5 p.m. Tuesday, May 19, and final adoption of the budget at 5 p.m. Tuesday, June 2, in the City Hall Kiva, 3939 N. Drinkwater Blvd. A legally required public hearing on the proposed property tax levy will be held immediately prior to the final budget adoption on June 2.

Citizens with questions regarding the city property tax rate or other budget issues may contact the Financial Services Department at (480) 312-7084.

Contact: Pat Dodds, Public Affairs Officer, (480) 312-2336