Reinagel for change in assessments and tax laws

Tax updates that I have just received from the Arizona Tax Research Association (ATRA) contain some disturbing news about District levies and General Obligation (G.O. Bonds).

Pinal County, one of the few in Arizona with Public Health Service District Levies, tops the entire state with a 2008 levy in the amount of $4,305,000. It becomes very obvious that the only way to stop the massive spending in Pinal County is to change the management team (both elected and appointed).

Governor Janet Napolitano recently vetoed several bills. One of the most disappointing was HB2585. This bill would have required that voters be provided with additional information regarding bond elections. First, it would have made the property tax example in the bond publicity pamphlet more realistic in terms of valuation growth (remember, even in a slow real estate market the current Pinal County Assessor has dramatically increased most valuations) so that taxpayers would have a better understanding of the proposed tax impact. Second, the bill would have required jurisdictions to disclose to taxpayers if the amount of proposed bonds, combined with the current outstanding debt, would exceed the political subdivision’s constitutional debt limit.

Simply put, local jurisdictions would have been required to seek voter approval prior to dramatically reducing a bond debt service schedule through refinancing that would result in a large tax increase to property owners.

So, why did the governor veto this bill? According to the ATRA referenced newsletter, “Again, despite ample evidence that property taxpayers have experienced dramatic increases in secondary taxes for bond debt service that was entirely inconsistent with what they thought they approved at the ballot, the Governor opted for more local control.”

Remember in 2006 state lawmakers passed a temporary repeal of the state property tax rate. HB 2220 was introduced to make the repeal permanent. On April 16, 2008, the governor vetoed the bill calling it, “the height of fiscal irresponsibility in the face of severe budgetary deficits.” (Have we seen any meaningful budget reductions, as most businesses are being required to do?)

ATRA goes on to state, “Moreover, the governor’s consistent opposition to these measures has served to bolster the efforts of grassroots organizations that argue that reasonable property tax policy cannot succeed at the capitol.”

In closing, allow me to restate my position; while the law outlines the duties of the assessor, nothing in the law prohibits the assessor from being a legislative advocate for property tax law change. When the voters indicate they are ready for a change on Nov. 4, not only will I correct the highly flawed assessment system in Pinal County, I will work with the state senators and legislators to change the convoluted laws where they are enacted, at the capitol. The end result will be favorable to the Pinal County taxpayers.

Submitted photo