Issues and Answers
Nancy Mclain - District 3
Arizona House of Representatives

 
As I have travelled throughout the district this summer, two issues always seem to come up for discussion:  property taxes and illegal immigration.
 
The legislature has done what it can regarding property taxes by suspending for at least three years the County Education Equalization tax.  The rate for this tax was approximately $.45 per hundred valuaton, so the resulting savings would not have been huge for any one homeowner.  But it was a start, and  eliminating, rather than reducing over time, this tax was one of my highest budget priorities, and I was glad to see that leadership finally came around to my position.
 
Unfortunately, one of our local school districts felt it needed additional funds, so it raised its levy rate by almost the exact amount of the eliminated tax.  Residents of that district will see no benefit from this legislative action.
 
There will be a property tax related referendum on this ballot this November.  The "2006 Taxpayer Protection Act" requires that the levy limit for cities, towns, counties and community college districts be calculated from the 2005 actual tax levy, rather than the previous base year.  The following is taken from the summary prepared by House of Representatives staff:
 
"As part of the package of tax reforms in 1980, the voters approved Proposition 107 which established a 2% levy limit for primary property taxes levied by counties, cities, towns and community college districts starting with all tax years beginning after December 31, 1981.  (Article IX, Section 19 of the Arizona Constitution.)  The levy limit also allows the jurisdictions to collect taxes on new value, in addition to the 2% levy growth.  Voters in these jurisdictions are allowed to approve amounts in excess of the limit.  The purpose of this limit was not to equalize county rates, but to control the future growth of levies by thiese jurisdictions.  Over the years, some jurisdictions have levied the maximum while others have not.
 
The proposal, if approved by the voters, will rebase the levy limits to the 2005 levy amount and eliminate any excess taxing capacity.  According to JLBC (Joint Legislative Budget Committee), rebasing the levy limits will eliminate approximately $181 million statewide in potential tax authority."
 
The above taxing entities naturally do not like changing the limits, so expect to hear from them, as they make their case for additional revenues for increased services. 
 
Bt the way, did you know that only 17% of the amount collected from property taxes goes for the operation of Mohave County?  The rest of your property tax bill goes to various other entities, such as school, fire, community college and other districts.  Next time you receive your bill, take a good look at the breakdown of where your tax dollars actually go.  If, like me, you don't receive a bill because your taxes are paid by your mortgage holder, you can phone for a copy or see it on line at the Mohave County website.
 
Next time:  What can or will the legislature do about illegal immigration?