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WhatsNew:

Prop 13 Arizona has filed for the 2012 ballot!.

June 27, 2011

The Prop 13 Arizona initiative has officially begun!

CurrentNews:

SB1041- Special Property tax breaks for the chosen few

SB1041 provides a 75% reduction in property taxes for politically chosen properties:
Read the full article here

 

 

 

RecentEvents:

Coming soon

 

 

Here are some answers to questions we are frequently asked

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  1. Why do we need an initiative?
  2. What does the initiative actually say?
  3. Will it lower my property taxes this year?
  4. If I rent, will this eliminate my landlord increasing my rent due to property taxes?
  5. Will the initiative prevent all tax increases?
  6. If this initiative passes, on average, how much will my taxes go down?
  7. How will this impact Police and Fire departments?
  8. How will this impact school districts?
  9. Why should businesses get a reduction on their property taxes?
  10. Does this mean the County Assessors office won't be speculating on the value of my home to determine my property tax bill?
  11. How do property taxes affect the value of my home?
  12. Will Prop 13 Arizona bring new businesses into the state?
  13. Will this impact the states economy?
  14. Is a 2% annual increase enough money for government?
  15. How many signatures are required for the initiative to qualify for the 2012 ballot?
  16. What is the current formula to determine property taxes?
  17. Since our property tax bills will no longer have "primary" and "secondary" designations, how will the money be distributed to the taxing districts?
  18. Without secondary taxes, what happens to existing debt and bond obligations?
  19. What if we want to issue new bonds for a project?

Why do we need an initiative?

  • Some  of our elected officials have introduced legislation that would limit property tax increases and protect property owners.  Unfortunately, they have been unable to get the necessary votes to pass the legislation.  An initiative goes straight to the citizens and allows them to make the desired changes in our laws.
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What does the initiative actually do?

  • The initiative uses purchase price as the basis for taxation.  Properties purchased prior to January 1, 2004 will use the County Assessor 2003 Full Cash Value as the tax basis until the property is sold and a new purchase price is established.  It caps the total tax rate at 0.5% for all residential property and 1% for all other real property, limits valuation increases to no more than 2% per year, and eliminates exceptions to these limits.
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Will it lower my property taxes this year?

  • The initiative will be on the ballot in November of 2012 and if passed into will go into effect in January 2013.  Most property owners will see some reduction in their tax bill.  More importantly, you will have protection from unaffordable tax increases for as long as you own your property.
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If I rent, will this eliminate my landlord increasing my rent due to property taxes?

  • With property tax increases limited to 2% per year, your landlord will only need to pass on that small amount to you through a rent increase.
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Will the initiative prevent all tax increases?

  • No, your tax could increase by 2% per year.  When property is sold, the new purchase price resets the basis for taxes due which could be higher than what the previous owner paid.
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If this initiative passes, on average, how much will my taxes go down?

  • The current complex system of property taxation makes an average tax reduction  per property owner difficult to determine.  Over the past several years, valuation increases had wide disparities throughout the state and even within communities.
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How will this impact Police and fire Departments?

  • Public safety usually takes top priority in municipal budgets and should not be affected by property tax limitations.
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How will this impact School districts?

  • Schools have received windfall revenues as a result of valuation run-ups over the past several years.   Prop 13 Arizona will for the most part restore school financing to where levels would have been without the valuation run-ups during the housing bubble.
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Why should businesses get a reduction on their property taxes?

  • Property taxes are passed on to consumers by various means including higher prices on the products or services the business offers.
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Does this mean the County Assessors office won't be speculating on the value of my home to determine my property tax bill?

  • That is correct.  After Prop 13 Arizona is implemented, there will be no need to speculate about home valuations.
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How do property taxes affect the value of my home?

  • According to The Wall Street Journal, every $100. increase in your property taxes reduces the value of your home by $1,200.
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Will Prop 13 Arizona bring new businesses into the state?

  • That is quite probable. We currently have one of the highest commercial property tax rates in the nation which hurts our ability to attract new businesses with good jobs.  Reducing the rate to 1% makes us competitive with other states including California which has had a 1% rate for the past 33 years.
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Will this affect the states economy?

  • Yes, Prop 13 Arizona will have a positive impact on the state's economy.   After California passed Prop 13 it kicked off 12 years of unprecedented growth and economic prosperity in their state.  Businesses and homeowners want to budget and plan for their tax obligations and Prop 13 Arizona gives them that ability.
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Is a 2% annual increase enough money for government?

  • Many of our citizens get less than a 2% income increase per year.    Arizona is a retirement state.  Those on fixed income receive only cost of living increases in their Social Security checks and no increase in their pension checks.  Only government retiree pension checks offer cost of living increases.  Government budgets need to stay in line with citizen's income.  California's Prop 13 has resulted in a 7.5% average annual increase in Los Angeles County property tax revenue over the past 30 years.
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How many signatures are required for the initiative to qualify for the 2012 ballot ?

 

  • We need 259,213 valid voter signatures to qualify for the ballot.
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What is the current formula to determine property taxes?

  • Valuation X Rate = Tax Due.  During the run-up in valuations over the past few years, most taxing districts did not lower their rate and instead took in windfall revenues.  Now that valuations are more stable, the City of Phoenix and some school districts have already raised their rates so as to collect more tax revenues and continue expanding their budgets.
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Since our property tax bills will no longer have "primary" and "secondary" designations, how will the money be distributed to the taxing districts?

  • The Legislature will resolve any new questions as to how property tax revenue will be distributed.
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Without secondary taxes, what happens to existing debt and bond obligations?

  • Debt and bond obligations will remain the same.  Taxing districts will simply receive one lump sum of money with which to pay their bills.
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What if we want to issue new bonds for a project?

 

  • Taxing districts can put proposed bond issues on the ballot to get voter opinion.  It would not raise taxes or bring in additional tax revenue.

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