Issues and Answers |
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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?
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