The deep slide in East Valley home values is showing up in property tax assessments being mailed out to homeowners, but don't expect that to translate into a drop in your tax bill anytime soon, if ever.

A coalition of 21 Arizona business groups has penned a letter to legislators, asking for a permanent repeal of a state property tax.


The equalization tax has been the focus of much Capitol discussion in recent months. It is nearing the end of a three-year suspension, so the tax, and its more than $250 million a year in state revenue, is slated to come back on the books in fiscal 2010. The business groups hope to keep that from happening and argue that the tax would "create further harm to struggling homeowners and businesses during this difficult economic time."

The economic crisis facing Arizona is extraordinary. Arizona's unemployment is up to 7 percent, and 155,000 Arizonans lost their jobs in the past year. This economic collapse has led to a record state budget deficit.


The question policymakers face now is how to close the deficit. The governor has put tax increases on the table. If we accept that premise, it is vitally important to recognize that all tax increases are not created equal and that each has different impacts on the private economy.

A late addition to budget bills rushed through the Legislature last week would ease the tax burden on businesses by shifting it on to homeowners.


The proposal drew no discussion during committees or floor debates and some lawmakers are just now realizing the full impact of the measure.


Under the provision, secondary property tax rates for businesses would be cut by more than half for any bonds or overrides passed after June 30.

Homeowners could be on the hook for a larger portion of taxes to pay for city, county and school district bonds and overrides if the governor goes along with a provision in the budget just approved by the Legislature.


For any election after June 30, the bill essentially cuts the ratio at which businesses are assessed to pay off those voter-approved obligations, from 22 percent to 10 percent — the same ratio at which homes are now evaluated.

A move to cap secondary property taxes is underway at the Arizona Capitol.


Under S1421, the existing limitations on annual increases in primary property taxes would apply to special taxing districts throughout the state.


The Senate Finance Committee approved the bill by a vote of 5-1 on June 10. Its next stop is the Senate floor for a debate and a vote.

Within minutes of hearing discussions of residential private golf course memberships, hilltop views and the actual market value of luxury homes in north Scottsdale, a hearing officer with the Arizona State Board of Equalization reached a conclusion - the value of Dennis Grose’s home had been overestimated by the office of Maricopa County Assessor Keith Russell by almost $250,000 dollars.

PHOENIX, AZ -- The annual futility of efforts either to abolish Arizona’s tax on business equipment and machinery or to increase the exemption has not deterred the many critics of the tax.


This year’s version, HCR 2006, takes a novel approach to formulating the tax exemption, which, if passed by voters, would increase from $66,440 annually per company to almost $1 million.

Furthermore, business leaders are trying to convince legislators the revision wouldn’t be an orphaned referendum.

Mesa is offering more than $2.8 million in incentives to lure a beer distributor - and its 455 employees - to the city in what is the largest single influx of jobs to the community in years.


Crescent Crown Distributing plans to break ground this month in west Mesa, moving from its current Phoenix locale. The site is in the middle of an area decimated in the last 10 years by an exodus of car dealers, a Motorola manufacturing plant, and stores of all sizes.

The delicate balancing act involved in changing Arizona’s property tax structure will leave some homeowners paying higher property taxes.


Because of the way property taxes are structured in Arizona, any decrease in the commercial property assessment ratio will shift a higher tax burden onto homeowners. School districts and other entities that levy property taxes set their rates to reach a certain dollar amount, and when one rate is lowered, others rise accordingly.