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High property taxes in Pima County – one more reason we are uncompetitive

22nd October
2008
written by JHiggins

Finally an article from the Az Star  and Erica Meltzer detailing just how much our property taxes have increased in Pima County.

Despite repeated cuts in the tax rate, many Pima County taxpayers are paying twice as much in property taxes as they did a decade ago…

To look at the long-term impact of rising home values on our taxes, the Arizona Daily Star used information from the Assessor’s Office to determine an average home value in 1998 and 2008. We found the average home value for tax purposes had increased 126 percent, from $89,444 to $202,483. Applying the tax rates in each of those years showed the average county tax bill increased 101 percent.
Today’s average homeowner pays $476 more in taxes to the county than 10 years ago.
Even when adjusted for 34 percent inflation over the decade, that’s still a 50 percent increase in constant dollars.
Commercial property tax rates aren’t much better. Just imagine how many new properties came on the tax rolls in the past 10 years. Every new house, every new commercial building added to the County’s tax base. As the property values go up more money comes in to Pima County treasury.
One study that would be worth looking at is what Pima County’s assessment ratio is compared to other Arizona Counties.  In speaking with someone in the know, Maricopa County sets their tax rate at 80-82% of actual value, Pima County sets there’s between 90-93%.  Maricopa does have the Palo Verde nuclear power plant which throws off a bunch of revenue. 
If you are a business looking to relocate to a community the taxing climate has a lot to do with your decision. Incentives up front are a peice of the puzzle but the communities long term variables are the most important.  I’ll go back to the importance of:

TRANSPORTATION INFRASTRUCTURE

FRIENDLY BUSINESS REGULATORY CLIMATE

EDUCATED WORK FORCE

TAXING POLICIES

Wages are staying stagnant and property values are rising. An entire generation of families are going to find it harder and harder to afford to live in our community. We must increase employment opportunities with high wage industries and start working on our communities core problems.
Tags: , ,
City of Tucson, Economic Development, Pima County

1 Comment

  1. John Beck Property Vault
    23/03/2009

    I was looking around for some material on real estate business techniques and I stumbled over your article. I found a few interesting pointers for my knowledge. Thanks Admin!

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