Truth In Phoenix Taxation Notice Explained

Press release from the City of Phoenix:

June 1, 2020

The City of Phoenix published the Truth in Taxation notice below as required by state law. The required notice addresses the city's primary property tax, which supports the General Fund services such as police and fire, parks and recreation, libraries and senior and community centers,

The city of Phoenix's proposed primary property tax rate for 2020-21 of $1.3055 per $100 of assessed valuation is unchanged from its 2019-20 rate. However, overall increases in assessed valuation result in a 3% increase in primary property taxes for the average city of Phoenix property owner. Individual experiences may differ based on unique property variances.

State law requires the notice below any time the average primary property tax bill increases, even if the primary property tax rate is reduced.

The Truth in Taxation notice prescribed by state law does not address the city's secondary property tax. The city's secondary property tax rate for 2020-21 will remain constant at $0.8241 per $100 of assessed valuation. Secondary property taxes pay the bonded debt service for facilities like libraries, police and fire stations, storm drains and parks.

For more information, call 602-262-4800, or visit Phoenix.gov/budget.

TRUTH IN TAXATION HEARING NOTICE OF TAX INCREASE

In compliance with section 42-17107, Arizona Revised Statutes, the city of Phoenix is notifying its property taxpayers of the city of Phoenix's intention to raise its primary property taxes over last year's level. The city of Phoenix is proposing an increase in primary property taxes of $5,276,888 or 3.0 percent.

For example, the proposed tax increase will cause the city of Phoenix's primary property taxes on a $100,000 home to be $130.55 (total proposed taxes including the tax increase). Without the proposed tax increase, the total taxes that would be owed on a $100,000 home would have been $126.76.

The proposed increase is exclusive of increased primary property taxes received from new construction. The increase is also exclusive of any changes that may occur from property tax levies for voter approved bonded indebtedness or budget and tax overrides.

All interested citizens are invited to attend the public hearing on the tax increase that is scheduled to be held June 17, 2020 at 2:30 p.m. at the city of Phoenix Council Chambers, 200 W. Jefferson St.

This press release was produced by the City of Phoenix. The views expressed here are the author’s own.