Thanks to rising property values and the recent decision by the Phoenix Union High School District Governing Board, home owners can expect to see an increase in their property taxes this year.
On June 20, the governing board of the Phoenix Union High School District voted a $3 million dollar increase to their tax levy, a decision that, by law, can be made without voter approval and is required to be adopted by the city. Practically speaking, this levy, which is expected to fund local community services, increases the property tax of a $100,000 home from $124.27 to $130.70. This signifies a near 5% increase in the primary property tax rate for such homes.
On the surface level, such an increase may not be much of a reason to fret. However, as the economy improves and property values in Phoenix naturally increase, residents can expect to see the amount they are paying in property taxes creeping up as well. This trend, along with secondary property tax increases being voted on by the Maricopa County Board of Supervisors could coagulate into a cause of financial stress.
Property taxes on the rise are understandably a concern for many, especially in light of the fact that the levy of school district’s in Arizona can be raised without voter approval, but here’s a couple things to remember before fretting. First, while property taxes will rise, Maricopa County as a whole must stay below its maximum levy, and the county is currently well below that. Second, in the grand scheme of things these levies are calculated to provide necessary and beneficial services to the community.
The end result of these property taxes remain to be seen, and August will prove to be an interesting month as governing boards meet to discuss, vote, and approve tax proposals.