Property tax hikes would have new impact on Pinal County residents
By Pinal County Supervisor Anthony Smith
Toward the end of the legislative session, an important issue escaped media attention but might have a significant impact to the counties, cities and other taxing districts within Pinal County.
Arizona’s budget contains a new provision that shifts the property tax liability associated with the 1 percent constitutional cap to local primary property taxing jurisdictions (counties, community college districts, cities and towns). Adding to my discomfort is the fact that the formula associated with this provision is very complex and subject to interpretation by an appointed commission.
A couple of weeks ago, the Board of Supervisors voted on several budget-related issues for the purpose of giving the county manager directions to prepare the fiscal year 2016 budget. On a narrow 3-2 vote, the board directed the county manager to prepare next year’s budget using a 20-cent increase in the primary property tax rate, taking it from 3.79 to 3.99 per $100 of net assessed value.
At the meeting, I expressed concern about the cascading impact raising Pinal County’s tax rate may have on other cities and taxing districts that are over or nearly over the maximum on the taxing formula. If Pinal County raises its primary property tax rate, the city of Maricopa estimates that it will cost them approximately $60,000. Because of its high tax rate, the city of Superior may very well be impacted too. I’m very concerned that there may be more taxing districts that will see an additional cost similar to the two I already identified.
