Monday, May 28, 2012

Scottsdale property tax increase to offset lower home values

To offset plunging home values, Scottsdale property owners will pay a higher property-tax rate for the fiscal year beginning July 1.

The city issued a "Truth in Taxation" notice, saying that next year's combined tax rate is expected to increase to about $1.23 per $100 of a home's assessed value, up from about $1.09.

Priciest home sales | Photos


The owner of a $100,000 home, for example, would pay about $122.50 in city property taxes.

A public hearing is scheduled at 5 p.m. June 5 in City Hall, 3939 N. Drinkwater Blvd.

Arizona has a two-tiered property-tax system. The "primary" tax covers government operations while a "secondary" tax supports bond debt for capital projects.

During budget talks, a majority of the Scottsdale City Council opposed a 2 percent increase allowed in the primary "levy," which represents the total amount collected in taxes.

But as property values plunge, the tax rate increases to offset lower land values. The total amount collected -- the levy -- remains similar.

The primary rate is expected to rise to about 50 cents of every $100 of assessed valuation, up from about 44 cents.

Likewise, the secondary rate will rise to about 72 cents, from about 65 cents.

While the amount collected in secondary taxes will drop by $300,000, assessed valuations have also fallen, resulting in the higher rate, said Scottsdale Finance Manager Lee Guillory.

In Scottsdale, about 13 cents of every dollar in property taxes goes to the city. The rest are taxes for public schools, the county, community colleges and special taxing districts.

by Beth Duckett - May. 23, 2012 08:54 AM The Republic | azcentral.com



Scottsdale property tax increase to offset lower home values

No comments:

Post a Comment

Real Estate News