Amid calls to reduce property tax rates, the Maricopa County Board of Supervisors approved a tentative budget Monday that keeps existing rates for current homeowners and slightly raises rates for new assessments.
Supervisors approved the tentative budget for the coming fiscal year, spending just over $3 billion, representing a 2 percent cut in the county’s operating budget. It doesn’t include $378 million in CARES Act funds in fiscal 2021 but puts wheels in motion to allocate that money.
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The county estimates it lost more than $200 million in non-recurring revenue between the current fiscal year and the 2021 fiscal year. The county’s property tax levy represents less than 12 percent of the total levy for taxpayers, the majority coming from schools.
“We’re keeping our costs as flat as we can keep them, we’re reducing, actually, our costs. We’re keeping the rate the same although some would like to have us reduce it,” said Supervisor Steve Chucri. “The only way this is going up is if new homes are built or if your home’s value has gone up. … We have cut staff. We have cut costs. It looks like we may have to do more. So we won’t have to tax more.”
New revenue will come from new construction and re-assessed properties. The county lists those increases as:
- Primary property tax increase of $18,565,283 or 3.1%, which would raise primary property taxes on a $100,000 home from $135.92 to $140.09.
- Secondary property tax increase of $3,183,302 or 4.5%, which would increase secondary property taxes on a $100,000 home from $17.15 to $17.92. (Flood Control District)
- Secondary property tax increase of $756,858 or 3.2%, which would increase secondary property taxes on a $100,000 home from $5.39 to $5.56. (Library District)
Underlying the issue of the county’s pandemic-related struggles is that the population has exploded in recent years. Maricopa County remained the fastest-growing county in America for three consecutive years, in terms of total population. Supervisors say that puts a strain on current services.
“These are difficult times. This budget focuses on what people need right now: investments in their safety, their health, and their economic well being, all within our state mandates, all without raising the tax rate,” Board of Supervisors Chairman Clint Hickman said “Because we’ve planned well and taken a conservative fiscal approach during the good times, we have the capacity to respond effectively to this crisis while continuing to fund other priorities like planning and executing successful elections.”
The board had been receiving calls to reduce its property tax levy in light of record unemployment during the pandemic. Growing property values would result in higher costs, so a lower rate would ensure that residents pay a similar amount yearly.
“I really wanted to lower the rate this year, but the numbers don’t support it now,” Supervisor Bill Gates said. “For those who would ask us to lower our tax rate at this time when we do not know where we’re headed would be the pinnacle of irresponsibility.”
Budget Director Cindy Goelz said the county’s levy is $140.5 million below their maximum rate allowed by law.
The final vote on the budget levy changes is scheduled for Aug. 17.
