PHOENIX (AP) — A statewide business-backed advocacy group reports that the recession's impact on real estate is showing up again as a major decrease in assessed valuations for property taxes.


The Arizona Tax Research Association reports an 18 percent drop in secondary net assessed values this year, adding up to a 28 percent drop when last year's decrease is factored in.

The group says the decrease in valuations mean taxpayers can expect another round of tax rate increases to fund government operations as well as voter-approved bonds and spending overrides.

Arizona has been able to attract Internet businesses in part because it does not tax online sales. But the "tax or not to tax" debate still rages in some quarters.


Internet retailers generally cannot be forced to collect state sales tax, although Arizonans are supposed to pay "use taxes" for any online purchases they make for which they pay no Arizona sales tax.

Pima County residents pay a primary property tax rate that's nearly three times that of taxpayers living in Maricopa County.


It's a comparison that has long attracted notice, particularly for folks in Phoenix who like to hold it up as an example of Southern Arizona's out-of-control spending.

Deciding whether the difference is out of whack, however, requires making sure there aren't some oranges mixed in with the apples.

Pima County taxpayers in fiscal year 2012 will pay a primary tax rate of $3.41 per $100 of assessed valuation.

For the first time since metro Phoenix home values crashed, most of the region's homeowners can expect a noticeable drop in their property taxes.


Maricopa County property-tax bills are being mailed this week, and the average homeowner bill is expected to decline more than $60 from last year's bill.

Search home values | Current housing market confusing

The bills reflect taxes from a variety of cities, school districts and other taxation districts, which take a percentage of a property's assessed value each year.

Arizona's finances are in a world of hurt.


We've seen revenue plummet. Agencies have gone through repeated rounds of cuts. The state made national headlines when it mortgaged the Capitol.

What does this say about our state tax system?

Should we overhaul it?

Raise rates? Lower rates? Flatten them? Change what we tax?

The Greater Phoenix Economic Council is rebooting its signature bill from the 2011 legislative session with some substantial changes that may help it avoid another veto.


And there will be a change in style as well as substance. Rather than push the bill itself, as GPEC did last session, the economic development organization is reaching out to other business groups it hopes will adopt the proposal as their own.

From the political notebook:


Mitt Romney recently stepped more bravely into the entitlement-reform minefield. He basically endorsed Congressman Paul Ryan's plan to transform Medicare from a program that pays for the medical bills of seniors to one that gives them financial support to purchase health insurance.

This is not as radical of a reform as depicted by opponents.

An influential tax policy group will seek to put a measure on the ballot to limit growth in property values.

The Arizona Tax Research Association wants taxable property values to grow by no more than 5 percent each year.

Capping the increases in property values for taxing purposes effectively limits the amount that may be assessed on local properties.

The proposed constitutional amendment will undoubtedly have some impact on local governments, which rely on property taxes for revenues. Already, lobbyists for municipal governments are wary of the idea.

After a concerted effort by ATRA, the Senate removed H2060 (municipal fire; emergency services; fee) from the third read calendar shortly before Wednesday’s floor session. The bill is aimed at allowing Paradise Valley to impose a fee on property tax owners in order to fund emergency medical services in the town.

Two citizen groups both claim they are having a tough time getting Mohave County to provide information about its finances.