Posted on 06/29/2016 6:43:17 PM PDT by hsmomx3
Phoenix Proposes Property Tax Increase Ignores money in the bank
On Friday, the Phoenix City Council is poised to increase its property tax rate by 19% for Fiscal Year 2017 from the longstanding combined tax rate of $1.82 to $2.17. Phoenix argues the rate increase is necessary to fund the debt service on voter approved general obligation bonds. Those bonds are financed through annual property tax levies.
In recent years the city has paid the annual debt service from a combination of property taxes and cash from excess property tax levies from the real estate boom in 2007 through 2009. The city now contends those excess reserves have been depleted necessitating a property tax rate increase. The truth is the city has decided to sit on some $90 million in property taxes that were levied in previous years and not use those funds to pay the debt service on the bonds. It is important to note that these taxes could only be levied to pay debt service on general obligation bonds. This cash is not a rainy day fund for general operating purposes; it must be used for bonds. Simply put, there is no legal basis for the city to hold onto millions of dollars that have been extracted from property taxpayers for debt payments while simultaneously increasing taxes for that very purpose.
The City of Phoenix could easily adopt a budget that leaves the historic $1.82 tax rate intact this year. In fact, doing so would still leave a cash reserve in the debt service account of almost $49 million.
State lawmakers must readdress this issue they believed they solved in 2013. Despite the 2013 law clearly dictating that local governments could only levy for debt service in the amount of the actual payment due in the upcoming year, some jurisdictions like Phoenix have theorized they can sit on any amount of taxpayer money and not recognize it going forward. Tax overpayment should benefit the taxpayer not the governmental entity .
City Council...........................262-7029
Mayor Greg Stanton ...............262-7111
District 1 Thelda Williams........262-7444
District 2 Jim Waring...............262-7445
District 3 Bill Gates..................262-7441
District 4 Tom Simplot.............262-7447
District 5 Daniel Valenzuela.....262-7446
District 6 Sal DiCiccio ..............262-7491
District 7 Michael Nowakowski...........262-7492
District 8 Michael Johnson ......262-7493
PING...
Time to move ;-)
It looks like Arizona has finally gone from purple to blue. It’s tough to stay a red state when the Kenyan is filling the state with illegal alien socialists looking for a free ride on the taxpayers’ backs.
Ya......TO Phoenix. If that's the millage rate - taxes per $1,000 of assessed value, it's about 20 TIMES lower than my taxes.
True!! Stanton is a tax and spend mayor and I can’t wait until he is out of office. I hope he does not run for governor.
Phoenix argues the rate increase is necessary to fund the debt service on voter approved general obligation bonds.
How stupid are the tax payers the think they can vote their way to Utopia and ‘the rich’ can pay. It’s the middle class that pays!
“the Kenyan is filling the state with illegal alien socialists looking for a free ride on the taxpayers’ backs.”
NO TRUER WORDS WERE Ever SPOKEN!!!
Hey, - Property owners will just shut down consumption, as many are now retired, or soon to be retired. Not to mention
things that were once commonplace such as dining out, shopping trips for additional garments luxury items.. or/even convenience items, or extended vacations...etc., newer cars, and many none essential items. In short ....Sales tax collected will greatly diminish and durable goods orders will fade to nothingness. The Illegals will get tired of Stop-Light Panhandling and jobs will plummet into negative figures. Adios to the days of Professional Sports Tickets, Expensive Movie Tickets, Casino Junkets, and second cars or expensive boats.
‘Being from Michigan years ago.....I’ve been down this road before. Yeah, I guess bringing in all those illegals wasn’t such a bright idea after all. Enjoy your new prosperity!
That’s what will happen........all over the country.
These are the cheapest property taxes in the country. You need to get out more. Lol.
Don’t move to Texas. They are the worst red state on property taxes. The state gouges homeowners. They are ranked number 5 in the United States on ripping off homeowners. The other 4 are blue states.
Ditto
Arizona shares a large border with tada, California. The problem with the refugees from Cal is they try to turn their new adopted area into what they left. So far in a few states they have been successful.
Compared to taxes back east, ours are cheap!
Our property taxes are less. But I bet our annual vehicle registration is higher than most states. For a new car, initially it’s probably about $500 per year and goes down a little each year.
Thanks. I saw that today.
The city of Phoenix has been blue for quite a while now. Two liberal democrat mayors in a row have taken their toll.
They need to rename it from “property tax” to “rent”. Think you own that property? Just try not paying those “property taxes” and see who has possession. A huge payment is made to the former renter, and then a yearly rent gets paid to our polotician overlords.
I don’t understand. We own our home, no mortgage.
These are the cheapest property taxes in the country. You need to get out more. Lol.
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In Illinois, property taxes are assessed by the counties. I moved into my current home in small town central Illinois in 1992 and my property taxes have gone up by 01%, two different times but when I turned 65, exactly 6 years ago today, they were reduced by 10%, so I’m paying 08% less than I did 24 years ago and I have made many improvements on the house and property in those 24 years.
Three bed rooms, two baths, utility room, attached garage, on a double corner lot in a town population 1,600, zero Amish. Taxes currently $735 per year.
No, they're not. Mine is $0.696 per $100 of assessed value, levied by the county, in NC.
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