City has until July 1 to report its intent to raise primary property tax rates

Speak up or pony up.

That’s the message to Maricopa following a Truth in Taxation public hearing Tuesday in which the City heard little from the public regarding its intent to approve a 2 percent increase on primary property taxes for fiscal year 2009 (see “City to discuss raising property taxes“).

Corrine E. Wilcox-Cornn, budget manager for the city, took up most of the time during the public hearing with a slide presentation explaining the proposed tax increase.

The good news, she said, is that while the rate would go up, the actual dollar amount of homeowners’ tax bills would decrease an average of $90 per house, or $52 per $100,000.

Maricopa resident Ed Babcock, one of three who spoke during the hearing, pointed out that depreciation in property values was the sole reason tax bills under the proposed increase would be reduced when compared to fiscal year 2008.

“You’re saving me $52?” he said. “I’d be saving more if you didn’t raise the tax.”

Wilcox-Cornn said the taxes are earmarked for public safety, which accounts for $16 million in the city’s budget. With newly annexed residents and no increase in ability to provide police and fire services to everyone, the estimated cost of doing so can only go up.

“To cover where we are right now, regardless of the annexation, we do need to go forward with this increase,” she said.

The five-year average primary property tax rate for Maricopa, based on statistics provided by the Arizona Tax Research Foundation and County Finance Department, is $6.1315 per $1,000 of assessed value.

If approved, the city has 14 days in which to report to Pinal County its intent to levy increased taxes in fiscal year 2009. The Council will reconvene on that date, July 1, for its next regular public meeting.

Photo by Michael K. Rich