Apart from the political impact yesterday’s election will have on our nation over the next four years, an amendment to Arizona’s Constitution was proposed last night and it will affect every Arizonan’s property taxes. Do you know how or when?
Although they are still considered unofficial, the election results above strongly suggest that the Arizona Property Tax Assessed Valuation Amendment, which was referred to as Proposition 117 on yesterday’s ballot, will pass by an overwhelming margin this year and take effect in 2015. For more details on this new change, here below is the state legislative council’s analysis of the proposition.
“Proposition 117 would amend the Arizona Constitution to cap the annual increase in the value of real property used to calculate property taxes to 5% over the value of the property for the previous year, beginning with the 2015 tax year. Currently, there is no limit on full cash value. This limitation would apply to property values used in determining all property taxes on the real property.”
Although the Arizona Tax Research Association (ATRA) said it will protect property taxpayers from dramatic increases in property valuations, which in turn, often lead to significant tax increases, the measure has its skeptics, too. Opponents of the proposition have pointed out that Arizona’s municipalities can, and most likely will, simply raise the tax rate charged to property owners to offset their lower property valuations.
Either way, I still believe we have a lot going for us here in Arizona! After all, Phoenix recently made Forbes’ list of 25 Best Places to Retire in 2012, thanks in large part to its low average home sales price, cost of living, and tax burden on retirees.
What do you think of the newest amendment to the Constitution of Arizona? Will it help to slow the all-but-certain increase to our property taxes over the next decade, or will our state’s municipalities find new ways to make up the lost revenue? Tell me in a comment below!
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