Sat, Jul 04, 2009

Tucson Region

Bill attacks rise in property tax

Lawmaker wants to limit increases in home values to 3 percent a year
By Daniel Scarpinato
Arizona Daily Star
Tucson, Arizona | Published: 12.09.2007
In the face of skyrocketing home-tax valuations, a Tucson lawmaker wants to cap how much the government can raise the value of your home.
Rep. Marian McClure, a Tucson Republican, says the tax values on some homes have soared so high that residents can't pay their property taxes. Her legislation would restrict the increase for tax purposes to 3 percent yearly — far below the 20 to 25 percent jump some homeowners saw this year.
McClure says her measure is just one of a number of proposals — the rest in the form of citizen initiatives — that will confront governments next year.
"When I've got constituents that are literally having to sell their homes because they can no longer afford to live in the home and pay the taxes, something's got to be done," she said.
The county is critical of the move, since property taxes are its main source of income.
"I think the counties are necessarily relying heavily on the property taxes, but that's the hand we've been dealt by the Legislature," said Martin Willett, chief deputy administrator for Pima County.
Essentially, the tax rate is based on how much money the county needs to cover the annual budget. Higher assessed values mean the tax rates can be lower and the government still could collect more money.
McClure says her bill would create some political changes.
"It would make the counties and the city have to really notify people that they are raising their taxes instead of saying, 'Well, we're not raising your taxes.' "
Willett called the rate "irrelevant."
"Does it matter whether we increase the rate or not?" he said. "Well, I suppose it does politically, but what people pay is what they pay. The rate is just a way that you get there through the calculation."
Bill Staples, Pima County assessor, has faced citizen outrage over the increase in home values — and public confusion. He suggests an alternative if lawmakers are looking to limit taxes and government spending.
"I would suggest they would limit the amount of money that the taxing authorities can collect and get away from holding the valuation at 3 percent," Staples said.
Staples said that instead of focusing on values and rates, the focus should be on budgets — or "the money out of taxpayers' pockets into the governments' pockets."
But even McClure's move isn't enough for some tax-cut proponents.
SaddleBrooke resident Fred MacKenzie is leading an effort called Arizona Tax Revolt and called McClure's move a step in the right direction, though not enough.
MacKenzie supports a citizens initiative that he hopes to see on the 2008 ballot — limiting the increase in values to 2 percent. But first it would roll back valuations to the 2003 rate, and that rate would be locked in even if the house were sold.
"We don't believe government would be honest," MacKenzie said. "We feel we have to set caps. I guess we're a little more cynical."
The initiative would also have a clause saying voters would need to approve any increases in the tax or valuation rates in a November election.
For her part, McClure says she's willing to negotiate with county officials, but either way, she predicts local governments will be facing a change.
"I think they realize something will be done," she said. "When you look at the other initiatives, this is pretty mild."
● Contact reporter Daniel Scarpinato at 307-4339 or dscarpinato@azstarnet.com.